Tejas Networks Q3 Loss Hits Rs 197 Cr on BSNL Order Delay

Introduction

Domestic telecom equipment manufacturer Tejas Networks has reported a consolidated net loss of Rs 196.55 crore for the third quarter ended December 31, 2025. This marks the second consecutive quarter of losses for the Tata Group company, a stark reversal from the Rs 165.67 crore profit recorded in the same period last year. The significant downturn is primarily attributed to a sharp decline in sales, compounded by the deferment of a substantial purchase order from the state-owned telecom operator, BSNL.

Detailed Financial Performance

The company's financial statements for the October-December period reveal a challenging quarter. Consolidated revenue from operations witnessed a steep decline of approximately 88%, falling to Rs 306.79 crore from Rs 2,642 crore in the corresponding quarter of the previous fiscal year. This sharp drop in top-line performance directly impacted profitability, leading to a pre-tax loss of Rs 303 crore compared to a pre-tax profit of Rs 211 crore in Q3 FY25.

For the nine-month period ending December 31, 2025, Tejas Networks has accumulated a consolidated loss of Rs 697.55 crore. During this period, revenue from operations stood at Rs 793.69 crore, an 89% decline from the previous year, highlighting the sustained pressure on the company's financial health.

The BSNL Order Deferral

A major factor contributing to the weak quarterly performance was the delay in a large-scale order from BSNL. Tejas Networks, a key vendor in the CDOT-TCS consortium for BSNL's 4G network rollout, experienced a deferment of a purchase order valued at Rs 1,526 crore. This order was intended for the supply of equipment for 18,000 network sites. The delay in execution and shipment against this order created a significant revenue gap for the quarter.

Operational Status and Management Commentary

Despite the financial setback, the company's management has highlighted its operational readiness and ongoing business activities. According to CFO Sumit Dhingra, the company ended the quarter with a healthy order book of Rs 1,329 crore. The company's cash and cash equivalents stood at Rs 537 crore. Furthermore, Tejas Networks maintained a substantial inventory of Rs 2,363 crore as of December 2025, which is expected to be converted into finished goods and shipped in the upcoming months as orders are executed.

Arnob Roy, the company's COO, stated that the revenue in Q3 was primarily driven by the sale of wireline products to private Indian and international customers. He also mentioned that the company is actively engaged in multiple field trials for its wireless products in both domestic and international markets, with commercial negotiations expected to conclude soon.

Key Financial Metrics: Q3 FY26 vs Q3 FY25

New Business and Strategic Wins

Tejas Networks continues to secure new business, diversifying its revenue streams. The company reported winning additional packages for the Bharatnet Phase-III project, positioning itself as a leading supplier of IP/MPLS routers. It has also been selected as the 5G RAN supplier for a section of the Delhi-Mumbai railway corridor for the Indian Railways' Kavach pilot project.

In the private sector, the company received expansion orders for its DWDM and GPON equipment from leading private telecom operators in India. Internationally, it secured an order for a DWDM backbone buildout from an African broadband ISP and another for network transformation from a power sector company in Southeast Asia. The company's revenue mix for the quarter was 85% from the domestic market and 15% from international markets.

PLI Incentive and Future Outlook

During the quarter, Tejas Networks received Rs 84.95 crore as an incentive under the Production-Linked Incentive (PLI) scheme for the March 2025 quarter. This brings the total incentive received by the company under the scheme to Rs 397 crore, providing a boost to its financials. While the delay in the BSNL order has impacted short-term results, the company's strong order book, diversified project pipeline, and significant inventory position it to capitalize on future opportunities as large-scale projects like the BSNL 4G rollout gain momentum.