Tejas Networks, a Tata Group-backed company, saw its shares crash 10% in Tuesday’s trading session (July 15), immediately after the opening bell, hitting a new 26-month low of ₹627.45 apiece. The sharp fall came after the company’s June quarter results disappointed the Street, with the firm reporting a net loss due to weaker revenue.
The company, which announced its Q1 results post-market hours on Monday, reported a net loss of ₹194 crore compared to a net profit of ₹77 crore in the same period last year. The losses also widened compared to the previous March quarter, when the company reported a net loss of ₹72 crore
Revenue from operations plunged 87% year-on-year to ₹202 crore in Q1, primarily due to delays in the receipt of purchase orders, inventory arrival, and shipment clearances for a few customers, as per the company’s regulatory filing.
On the operating front, the company reported an EBITDA loss of ₹136 crore, compared to ₹230 crore in Q1 FY25. Although the company posted a weak set of numbers, it secured fresh orders for routers under BharatNet Phase 3 and optical equipment while also signing strategic partnerships, closing the quarter with an order book of ₹1241 crore.
Mr. Arnob Roy, COO of Tejas Networks, said, “In Q1 FY26, we signed strategic partnerships with Rakuten Symphony for developing O-RAN solutions and with Intel and some mobile phone manufacturers for adopting our D2M chipsets. These partnerships enhance our go-to-market initiatives in international markets. We won orders for our routers for BharatNet Phase 3 and optical equipment from private operators in India. Our shortfall in revenue was due to delays in the receipt of a few purchase orders, including the expansion order from BSNL.”
Mr. Sumit Dhingra, CFO, added, “In Q1 FY26, we had a revenue of ₹202 crore and a net loss of ₹194 crore, largely due to lower revenue. We ended the quarter with an order book of ₹1,241 crore, representing a QoQ growth of 22%. With the award of the expansion order of 18,685 BSNL 4G sites to TCS, we expect to receive the corresponding PO for the supply of RAN equipment worth ₹1,526 crore.”
Stock now trades at 56% discount from its recent peak
With today’s crash, the stock has declined 56% from its all-time high of ₹1,495, recorded in June 2024. Although the stock has more than halved, it is still trading with a 1,065% gain over the past five years.
Tejas Networks is part of the Tata Group, with Panatone Finvest (a subsidiary of Tata Sons) as its majority shareholder. The company designs and manufactures high-performance wireline and wireless networking products for telecom service providers, internet service providers, utilities, defense, and government entities in over 75 countries.
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