Tejas Networks flags ‘disappointing’ FY26 as BSNL slowdown, order delays hit revenue

NEW DELHI: Tata group-backed Tejas Networks has admitted that its financial performance was “quite disappointing” in FY26 as completion of the first 4G project at state-owned Bharat Sanchar Nigam Ltd (BSNL) and major order delays led to a sharp revenue shortfall and pushed the company into losses.

Telecom gear maker reports net loss ₹909 crore for FY26 compared to the previous year. ₹While it made a profit of ₹ 447 crore in the previous year, revenue from operations fell more than eight times ₹1,103 crore. The company announced its March quarter and full-year earnings after market hours on Wednesday.

Shares of Tejas Networks fell nearly 6% in early trading on Thursday. ₹423.50 apiece, reflecting investors’ concerns about rising inventories, lingering receivables and the company’s path back to profitability.

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During the earnings call, one investor also noted that the stock has fallen sharply from its lifetime high. ₹1,495 in June 2024. However, the company expressed confidence in its long-term prospects.

“Yes, the results were quite disappointing, but we are also positive about our prospects based on the significant investments we made during the year,” Tejas Networks managing director and chief operating officer Arnob Roy said in the earnings release.

“This has been a transition year for us after the launch of the massive BSNL project in FY25 which generated significant revenue for us and we needed a runway in FY26 to expand and consolidate our business beyond BSNL. Several major customer projects that we had actually planned for both wired and wireless products have been postponed,” Roy added.

The company has deployed the 4G network in around 100,000 premises for state-owned BSNL and the original order is worth: ₹7,492 crore, according to an earlier company statement.

Roy was appointed as chief executive officer and chief executive officer for a period of two years, effective from 15 April 2026 to 3 August 2028, subject to shareholder approval. The position was vacant for nearly four quarters following the resignation of previous CEO Anand Athreya.

On expectations of break-even or return to profitability in FY27, Roy said: “That is the target…FY26 has been a year of investment and we expect to see much better financial results in FY27.”

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Although the company has an order book ₹Investors and analysts have expressed concerns over unsold inventory at ₹ 1,514 crore. ₹2,438 crore at the end of March.

The Bengaluru-based firm has been waiting for BSNL’s approval for over a year ₹1,526 crore “add-on” orders for 18,685 additional facilities have forced the business to maintain high stock levels.

excess inventory

Sanjay Malik, the company’s chief strategy and business officer, said during the call: “Active discussions are still ongoing with the BSNL team about the sites and configurations where they should have 4G.”

The company said the 4G/5G radios are not specific to BSNL and could be repurposed for other global customers for private networks, although a significant portion is expected to go to the BSNL add-on.

Competing with the likes of Nokia and Ericsson, Tejas is banking on international expansion through strategic partnerships, an AI-driven network upgrade “super cycle” and execution of overdue domestic projects such as the BSNL add-on order for 4G and potential 5G upgrades to generate returns.

The company recently partnered with Japan-based NEC Corp to manufacture and supply 5G massive MIMO (Multiple Input Multiple Output) radios for a global customer. Won a contract with. The company is also running trials in South Asia and the Americas and exploring opportunities in data center connectivity.

From the order book ₹1,514 crore, 83% of which is Indian while 17% is international.

Also Read | Are shares of Tejas Networks heading towards ₹600?

The company said the impact of rising memory chip prices on margins due to supply constraints will be limited, but delivery times will remain challenging.

“I think we’re making sure that’s reflected in our cost, though. We’re basically renegotiating and reintroducing our new prices with the increase to make sure we maintain our margin,” Roy said.

The company reported a loss for the fifth consecutive quarter in the January-March period. ₹compared to 211 crore ₹72 crore a year ago. Revenue from operations dropped 82.5% ₹333 crore during the quarter.