Tejas Networks won big with BSNL—so why is it losing money now?
What started as a watershed year for Tejas Networks Ltd in 2024-25 – with the Tata group-backed telecom equipment maker installing a 4G network in around 100,000 premises for state-owned Bharat Sanchar Nigam Ltd (BSNL) – gave way to a protracted financial struggle as a delay in a critical order weighed on earnings.
The Bengaluru-based firm had been waiting for BSNL’s approval for almost a year. ₹1,526 crore “add-on” orders for 18,685 additional sites. This delay forced it to exceed sticky stock levels ₹2,300 crore for four consecutive quarters, resulting in quarterly losses due to severe revenue constraints.
During its December-quarter earnings release on Jan. 9, it was clear that impatience was growing as shareholders questioned management about the path to profitability after a period of cumulative losses.
Investors and analysts have raised red flags about the company’s financial model, noting that stock levels are currently double the order book size. ₹1,329 crore, creating a very long working capital cycle that is yet to deliver returns to shareholders.
Questions about the company’s cash flow have also been raised, with analysts questioning whether a fundraise would be imminent given its near-recurring EBITDA (earnings before interest, taxes, depreciation and amortization) losses. ₹150 crore, excluding BSNL orders, and the significant revenue required to break even.
“I understand that this is a difficult time for our business, stock prices and other reasons. All I can say is that we are optimistic about our business,” Arnob Roy, managing director and chief operating officer of Tejas Networks, said during the earnings call.
“We’re doing everything we can to make this happen and we’re confident we’ll get there. This is a transition period that’s taking longer than we’d like.”
BSNL delay
Tejas Networks attributed the delay in the BSNL order to the telecom operator’s lack of operational preparedness to roll out the network. According to Roy, the company’s stock levels will be depleted quickly once it receives the purchase order from BSNL and starts executing the project.
“Earlier, a large portion of this inventory was actually procured for execution on the BSNL 4G add-on order for which our partner Tata Consultancy Services Ltd (TCS) had received an APO (advance purchase order). So we are sitting on this huge inventory, but for the future of this order, we know that we need to hold the inventory to be able to execute this project,” he said.
Tejas Networks had first mentioned during an earnings call in April 2025 that it was in advanced stages of talks with BSNL for the add-on offering. It later informed the exchanges on May 21, 2025 that it had received additional advance purchase orders from BSNL for supply, distribution and maintenance of 4G mobile network across 18,685 premises. He had fixed the order value at: ₹1,526 crore. However, the final order has not been received yet.
hitting the winnings
It released a report in the December quarter. ₹compared to a loss of 197 crore ₹166 crore net profit a year ago. The company’s revenue from operations fell more than 88% year-on-year. ₹307 crore. The company’s loss in the nine months ending December ₹compared to 698 crore ₹In the same period last year, a profit of 518 crore was made.
Weak financial results also weighed on the company’s shares, which closed down 8.9% on Monday. ₹380 on the National Stock Exchange (NSE). Data from Investing.com shows that by 2025, share price fell 61.7 percent ₹1,185.7.
“Tejas Networks has a huge dependence on a single customer, namely BSNL. The company’s success story is limited, given that major private telecom operators do not use its equipment. The company needs to focus more on research and development to make a leap in innovation,” said Faisal Kawoosa, principal analyst at technology market research firm Techarc.
Kawoosa says global competition is higher The market for telecom equipment, especially from Chinese players, could also complicate the company’s international expansion plans.
Of course, in December 2024, Tejas announced a three-year contract with Vodafone Idea Ltd to supply products for the telecom operator’s backhaul capacity and improve network performance.
“We don’t see BSNL and BSNL projects being the lifeline or anchor for Tejas. They were a platform for us and we are very grateful to get this opportunity, but I think the company’s plan is to take this truly global, take this to private telecom operators, international operators,” Roy said.
On the company’s path to profitability, “this will be when this business will really grow, both internationally and in India, led by our wired products as well as our wireless products,” he said.
He added that a good business size can support this situation. Investments made by the company over the years.
About Tejas Networks’ order book ₹1,329 crore, India accounts for 92%, while international order size is around 8%. The company said it has seen an increase in international participation for its 4G/5G radio access network (RAN) equipment, including multiple proofs of concept and commercial negotiations underway in Asia Pacific, Latin America, Africa and Europe.
leadership gap
During the call, investors also asked management questions about the timeline for appointing a new chief executive officer (CEO). The position had been vacant for nearly three-quarters since the resignation of previous CEO Anand Athreya.
In response, Roy said that the company’s normal business operations would not be affected by him not applying for the CEO position. He added that the board is actively working on this issue and an appointment will take place in the near future.
Going forward, the company anticipates demand driven by AI-driven traffic growth, continued 4G expansion, new 5G deployments in emerging markets, and increased investments in AI data centers.
