Tejas Networks Ltd
Tejas Networks Ltd
TelecommunicationIncorporated in 2000,Tejas Networks Ltd designs and manufactures wireline and wireless networking products, with a focus on technology, innovation and R&D. TNL carrier-class products are used by telecom service providers, utilities, governments, and defence networks in 75+ countries. Company is currently a part of Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited).[1]
Tejas Networks is facing severe operational deterioration with TTM sales declining 88% and net losses widening (PE of -11.8x). With negative ROE of -27% last year, 1,077 days debtor period, and no analyst coverage supporting the stock, the risk-reward is unfavorable at current valuations of 3.66x book value.
Key Fundamentals
MicrocapEquipment & AccessoriesTelecomTechnical Indicators
Key Insights
Weaknesses
4- Stock is trading at 3.78 times its book value
- Company has low interest coverage ratio.
- Company has a low return on equity of -4.01% over last 3 years.
- Company has high debtors of 1,077 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 7d agoTejas Networks is facing severe operational deterioration with TTM sales declining 88% and net losses widening (PE of -11.8x). With negative ROE of -27% last year, 1,077 days debtor period, and no analyst coverage supporting the stock, the risk-reward is unfavorable at current valuations of 3.66x book value.
- Market cap of Rs 10,828 Cr reflects Tata Group backing and strategic importance in India's telecom equipment localization story
- 5-year stock CAGR of 28% demonstrates long-term wealth creation potential during favorable cycles
- 5-year compounded sales growth of 16% shows the company has historically been able to scale revenues
- Dividend yield of 0.42% indicates management confidence in maintaining shareholder returns despite losses
- 3-year compounded sales growth of 6% suggests underlying business had positive momentum before the recent TTM collapse
- 10-year compounded sales growth of 6% confirms a viable long-term business model in optical and data networking equipment
- TTM sales have collapsed by 88%, indicating severe revenue recognition issues or order execution delays
- Negative PE of -11.8x confirms the company is loss-making with TTM profit declining 303%
- Debtors at 1,077 days (nearly 3 years) signals extremely poor cash conversion and potential receivable quality risk
- Last year ROE of -27% represents dramatic deterioration from the 3-year average of -4%
- Stock trading at 3.66x book value is expensive for a loss-making company with negative returns on equity
- Low interest coverage ratio indicates debt servicing pressure amid declining revenues
- 1-year stock return of -14% shows market is repricing the stock lower as fundamentals deteriorate
- Zero analyst coverage (no buy, hold, or sell ratings) suggests institutional disinterest or lack of visibility on earnings recovery
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Massive FY26 net loss ₹909 crore Jun 1
Consolidated PAT for FY26 was ₹(909) crore, a significant loss despite ₹1,103 crore in net revenues, raising profitability concerns.
- Revenue decline from FY25 levels Jun 4
FY26 revenue of ₹1,103 crore was lower than FY25 due to completion of BSNL 4G 100,000-site supply, indicating lumpy revenue dependence on large projects.
- Customer concentration risk acknowledged Jun 4
Management noted a significant portion of revenues derive from a small number of customers, leading to quarterly fluctuation and seasonality.
- Borrowings increased for working capital Jun 4
Company borrowings rose in FY26 primarily to meet working capital requirements for large project execution, increasing financial leverage.
- Order backlog surges 49% YoY Jun 4
Order backlog grew to ₹1,514 crore at end-FY26 from ₹1,019 crore at end-FY25, with inflows exceeding revenue execution driven by Bharat Net and international customers.
- Stock rallies 10% on AI outlook Jun 4
Shares surged 10% to ₹625.50 intraday on June 4, up 49% over one month and 39% YTD, on management confidence in AI-driven multi-year infra upgrade cycle.
- International business share triples Jun 4
International revenue share rose to 16% in FY26 from 3% in FY25, while Indian private business grew to 62%, showing successful diversification.
- PLI grant of ₹278 crore received Jun 4
Company received a ₹278 crore PLI grant related to previous years during FY26, plus ₹69 crore under the ongoing PLI scheme.
- New products reach commercialisation Jun 4
4G/5G RAN products, IP/MPLS routers, and 400G+ coherent DWDM equipment reached commercialisation stage in FY26, broadening the product portfolio.
- Tata Sons strategic plans for Tejas May 26
Tata Sons scheduled a meeting on May 26 to present future plans for Tejas Networks, signaling continued parent-level strategic commitment.
- Trading window closed for Q1FY26 Jun 11
Tejas Networks closed its insider trading window from June 16, 2026 until 48 hours after Q1FY26 results release per SEBI regulations.
- AGM scheduled June 26, 2026 Jun 1
26th Annual General Meeting set for June 26, 2026 via video conference; routine corporate governance event.
- FY26 annual report and BRSR filed Jun 3
Company shared its FY26 Annual Report web-link on June 3 and filed its Business Responsibility and Sustainability Report on June 1.
TL;DR: Tejas Networks is in a consolidation phase with a strong order backlog (₹1,514 crore, +49% YoY) and growing international diversification, but reported a steep ₹909 crore net loss in FY26 on lower revenues after the BSNL 4G project completion. The stock has rallied sharply on AI infrastructure optimism and new product commercialisation. Key risks are sustained losses, customer concentration, and rising borrowings, but the expanding order book and Tata Sons backing suggest improving trajectory into FY27 if execution picks up.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 299 | 188 | 396 | 560 | 1,327 | 1,563 | 2,811 | 2,642 | 1,907 | 202 | 262 | 307 | 333 |
| Expenses | 308 | 234 | 383 | 567 | 1,018 | 1,333 | 2,277 | 2,271 | 1,785 | 338 | 556 | 441 | 451 |
| Operating Profit | -8 | -46 | 13 | -8 | 309 | 230 | 535 | 372 | 122 | -136 | -294 | -134 | -118 |
| OPM % | -3% | -24% | 3% | -1% | 23% | 15% | 19% | 14% | 6% | -67% | -112% | -44% | -36% |
| Other Income | 21 | 19 | 18 | 15 | 12 | 13 | 11 | 14 | 8 | 10 | 6 | 8 | 10 |
| Interest | 5 | 5 | 7 | 8 | 31 | 57 | 61 | 63 | 71 | 75 | 84 | 72 | 72 |
| Depreciation | 35 | 34 | 42 | 48 | 58 | 65 | 74 | 111 | 103 | 96 | 101 | 104 | 101 |
| PBT | -27 | -66 | -18 | -49 | 233 | 122 | 411 | 211 | -45 | -297 | -473 | -303 | -281 |
| Tax % | -58% | -60% | -29% | -8% | 37% | 36% | 33% | 22% | 59% | -35% | -35% | -35% | -25% |
| Net Profit | -11 | -26 | -13 | -45 | 147 | 77 | 275 | 166 | -72 | -194 | -307 | -197 | -211 |
| EPS in Rs | -0.68 | -1.55 | -0.74 | -2.64 | 8.6 | 4.53 | 16.07 | 9.43 | -4.07 | -10.98 | -17.36 | -11.07 | -11.89 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 387 | 627 | 875 | 750 | 900 | 391 | 527 | 551 | 920 | 2,471 | 8,923 | 1,103 |
| Expenses | 319 | 514 | 711 | 597 | 704 | 478 | 473 | 631 | 906 | 2,205 | 7,665 | 1,785 |
| Operating Profit | 68 | 113 | 164 | 153 | 196 | -87 | 53 | -80 | 14 | 266 | 1,258 | -682 |
| OPM % | 18% | 18% | 19% | 20% | 22% | -22% | 10% | -15% | 2% | 11% | 14% | -62% |
| Other Income | 10 | 4 | -22 | 28 | 37 | 34 | 25 | 43 | 81 | 65 | 45 | 33 |
| Interest | 47 | 49 | 32 | 13 | 17 | 8 | 4 | 3 | 15 | 48 | 252 | 303 |
| Depreciation | 49 | 38 | 56 | 61 | 66 | 77 | 52 | 77 | 122 | 182 | 353 | 403 |
| PBT | -18 | 29 | 54 | 106 | 150 | -139 | 23 | -117 | -43 | 100 | 698 | -1,354 |
| Tax % | 0% | 0% | -73% | 0% | 2% | 71% | -67% | -46% | -15% | 37% | 36% | -33% |
| Net Profit | -18 | 29 | 93 | 107 | 147 | -237 | 38 | -63 | -36 | 63 | 447 | -909 |
| EPS in Rs | -3.07 | 4.59 | 13.15 | 11.73 | 16.05 | -25.71 | 4.03 | -5.47 | -2.16 | 3.69 | 25.32 | -51.14 |
| Div. Payout % | 0% | 0% | 0% | 0% | 6% | 0% | 0% | 0% | 0% | 0% | 10% | 0% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 62 | 67 | 74 | 94 | 95 | 95 | 97 | 118 | 172 | 174 | 180 | 181 |
| Reserves | 206 | 294 | 519 | 1,058 | 1,225 | 985 | 1,038 | 1,812 | 2,801 | 2,976 | 3,667 | 2,750 |
| Borrowings | 314 | 259 | 281 | 2 | 1 | 28 | 22 | 20 | 50 | 1,884 | 3,407 | 4,177 |
| Other Liabilities | 146 | 219 | 160 | 175 | 264 | 132 | 156 | 160 | 579 | 3,169 | 3,209 | 2,295 |
| Total Liabilities | 728 | 838 | 1,034 | 1,330 | 1,585 | 1,241 | 1,312 | 2,110 | 3,602 | 8,203 | 10,462 | 9,403 |
| Fixed Assets | 51 | 94 | 92 | 75 | 99 | 79 | 111 | 138 | 647 | 961 | 1,147 | 1,130 |
| CWIP | 88 | 52 | 19 | 47 | 41 | 27 | 24 | 40 | 154 | 235 | 404 | 950 |
| Investments | 0 | 0 | 0 | 77 | 87 | 51 | 37 | 402 | 262 | 334 | 482 | 365 |
| Other Assets | 589 | 692 | 924 | 1,132 | 1,358 | 1,085 | 1,139 | 1,531 | 2,539 | 6,673 | 8,429 | 6,957 |
| Total Assets | 728 | 838 | 1,034 | 1,330 | 1,585 | 1,241 | 1,312 | 2,110 | 3,602 | 8,203 | 10,462 | 9,403 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 76 | 127 | 150 | 239 | -82 | 1 | 158 | -17 | -380 | -2,036 | -491 | 135 |
| Investing | -29 | -50 | -140 | -213 | -104 | 71 | -167 | -828 | -581 | 430 | -655 | -761 |
| Financing | -40 | -41 | -28 | 157 | -11 | -22 | -3 | 839 | 999 | 1,713 | 1,286 | 397 |
| Net Cash Flow | 8 | 37 | -18 | 183 | -197 | 50 | -13 | -6 | 38 | 107 | 139 | -229 |
| Free Cash Flow | 37 | 82 | 98 | 171 | -162 | -92 | 75 | -135 | -629 | -2,445 | -1,143 | -749 |
| CFO/OP | 115 | 115 | 95 | 178 | -29 | -13 | 304 | 58 | -2,788 | -757 | -31 | -23 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 196 | 148 | 160 | 134 | 252 | 351 | 236 | 189 | 198 | 208 | 182 | 1,077 |
| Inventory Days | 405 | 238 | 129 | 179 | 143 | 452 | 290 | 327 | 421 | 861 | 132 | 1,160 |
| Days Payable | 252 | 205 | 77 | 98 | 129 | 134 | 125 | 131 | 196 | 424 | 66 | 227 |
| Cash Conversion Cycle | 349 | 181 | 212 | 215 | 266 | 669 | 401 | 384 | 423 | 645 | 248 | 2,010 |
| Working Capital Days | 318 | 51 | 74 | 256 | 304 | 580 | 385 | 552 | 491 | 206 | 56 | 211 |
| ROCE % | 5% | 13% | 16% | 12% | 13% | -11% | 2% | -7% | -1% | 4% | 15% | -15% |
Documents
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Company Information
Incorporated in 2000,Tejas Networks Ltd designs and manufactures wireline and wireless networking products, with a focus on technology, innovation and R&D. TNL carrier-class products are used by telecom service providers, utilities, governments, and defence networks in 75+ countries. Company is currently a part of Panatone Finvest Limited (a subsidiary of Tata Sons Private Limited).[1]