Tejas Networks Shares Fell ~12% After Reporting Sharp Drop in Revenue in Q3FY26

Tejas Networks Limited, Domestic telecom equipment manufacturer released its results for the quarter ended December 31, 2025 (Q3FY26), wherein it reported a consolidated loss of ₹196.55 crore. The market reacted negatively and Tejas share price fell ~12% and reached the day low of ₹364.50 at 12:05 PM after opening at ₹395.70 on BSE.

Sharp Drop in Revenue and Profit

This marks its second consecutive quarterly loss, largely due to a sharp drop in sales and delays in purchase orders from state-run BSNL. The company had posted a consolidated profit of ₹165.67 crore in the corresponding quarter last year. Revenue from operations plunged nearly 88% year-on-year to ₹306.79 crore, compared with approximately ₹2,642 crore in the December 2024 quarter.

For the nine-month period ended December 31, Tejas Networks reported a cumulative loss of ₹697.55 crore, alongside an 89% year-on-year decline in revenue from operations to ₹793.69 crore. Cash and cash equivalents stood at ₹537 crore at the end of the December 2025 quarter.

In terms of market mix, about 85% of the company’s revenue, excluding operating income came from the domestic market, while international operations contributed the remaining 15%. The company also disclosed that it held inventory worth ₹2,363 crore as of the December 2025 quarter, which is expected to be converted into finished goods and shipped in the coming months.

BSNL Order Delay Hits Performance

Tejas Networks is a major supplier to BSNL’s nationwide 4G rollout under the C-DOT–TCS consortium and claims leadership in the supply of network routers. During the quarter, a BSNL purchase order worth ₹1,526 crore, covering 18,000 sites, was deferred, significantly impacting revenues.

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Despite the near-term financial pressure, the company highlighted multiple contract wins for private 5G deployments in India, particularly for port and mining applications. It has also been chosen as the 5G radio network supplier for a segment of the Delhi–Mumbai railway corridor under Indian Railways’ Kavach pilot project.

Additionally, Tejas Networks received ₹84.95 crore in production-linked incentive (PLI) payouts during the quarter, pertaining to the March 2025 period. This brings the total PLI incentives received by the company to ₹397 crore.

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