Tejas Networks Q3 FY26: Revenue ₹307 Cr, Loss ₹197 Cr

Results snapshot: sharp YoY fall, sequential improvement

Tejas Networks reported its financial results for the third quarter ended December 31, 2025 (Q3 FY26), showing a steep year-on-year decline in revenue alongside a sequential recovery. Net revenue for the quarter stood at ₹307 crore versus ₹2,642 crore in Q3 FY25, as large domestic project execution remained constrained. On a quarter-on-quarter basis, management said revenue rose 17% from ₹262 crore in Q2 FY26, helped largely by wireline product sales. The company posted a loss for the second straight quarter, with PAT reported at around ₹197 crore loss (₹196.55 crore in detailed disclosures), compared with a ₹166 crore profit in the same quarter last year. Pre-tax loss (PBT) was ₹303 crore loss in Q3 FY26 versus ₹211 crore profit in Q3 FY25. For the first nine months of FY26 (9M FY26), Tejas reported net revenue of ₹771 crore and a PAT loss of ₹698 crore.

What management said about demand and deal pipeline

Arnob Roy, COO of Tejas Networks, said Q3 FY26 revenue was “driven largely by sale of Wireline products to India Pvt and International customers.” He added that the company engaged in multiple field trials for its wireless products across India and international markets. Commercial negotiations for these wireless engagements are expected to close in the coming months, according to the update. The commentary indicates Tejas is attempting to broaden demand beyond a few large domestic programs. At the same time, the quarter’s reported numbers show that timing and execution of large orders continue to dominate financial outcomes. The company’s near-term trajectory remains linked to conversion of trials and order book execution.

Key wins in BharatNet, railways, and international wireline

During the quarter, Tejas said it won additional packages for BharatNet Phase-III, where it is a leading supplier of IP/MPLS routers. It has won 7 out of 12 packages announced so far, as per the company update. Tejas was also selected as the 5G RAN supplier on a section of the Delhi-Mumbai railway corridor for a Kavach pilot. In private telecom, it received expansion orders for DWDM and GPON OLT equipment from leading private telcos in India. Internationally, Tejas reported a DWDM backbone buildout order from a broadband ISP in Africa and a network transformation application for its MPLS-TP products for a power sector company in Southeast Asia. These wins highlight a mix of domestic infrastructure programs and selective overseas opportunities.

The overhang: BSNL 4G add-on order still pending

A major constraint flagged across disclosures was the delayed BSNL 4G add-on purchase order. Tejas has been waiting for the final PO for nearly a year for an add-on order valued at ₹1,526 crore, covering about 18,000 sites (also cited as 18,685 sites in disclosures). The company said it had informed stock exchanges on May 21, 2025 that it received an add-on advance purchase order for supply, deployment, and maintenance for the project, but the final order has not been received yet. Arnob Roy attributed the delay to BSNL’s operational readiness and site preparedness. He said the expansion order is “still in the works” and would come at an appropriate time from BSNL. The delay matters because it has affected both quarterly revenue conversion and balance sheet working capital.

Inventory and working capital: the central balance sheet issue

Tejas reported inventory of ₹2,363 crore in the December 2025 quarter, described as almost double the current order book. The company also disclosed that it procured components in anticipation of the BSNL add-on order, contributing to inventory being above ₹2,300 crore for four consecutive quarters. Investors and analysts raised concerns about the extended working capital cycle and the cash runway amid recurring EBITDA losses of about ₹150 crore. The “Risks & Constraints” summary highlighted concentration risk due to reliance on Indian government-led projects such as BSNL and BharatNet, where site readiness delays can directly impact cash flows and inventory carrying costs. It also flagged competitive margin pressure in a price-sensitive market, with margin expansion linked to closing international deals.

Order book grows; debt stays elevated

CFO Sumit Dhingra said Tejas ended Q3 FY26 with an order book of ₹1,329 crore, up from ₹1,204 crore in Q2 FY26. The company also disclosed that 92% of the order book is from Indian customers, with the balance from international customers. On leverage, Tejas reported net debt of ₹3,349 crore at the end of Q3 FY26 compared with ₹3,738 crore in Q2 FY26, mainly due to lower working capital, partly offset by capex. Gross debt was ₹3,885 crore and cash was ₹537 crore. The combination of a rising order book and high inventory levels suggests execution timing will be the key swing factor for cash flows.

Operating performance: EBIT loss narrows sequentially

Tejas reported an EBIT loss of ₹239 crore in Q3 FY26, described as an improvement from -₹394 crore in Q2. The update said the EBIT number includes provisions for a new labor code and warranty expenses. Despite sequential improvement, the company remained loss-making at the PBT and PAT level for the quarter. The income statement also reflects the sharp YoY revenue decline, which reduces absorption of fixed costs. Management’s emphasis on converting field trials and closing commercial negotiations is aimed at restoring revenue scale and smoothing quarterly volatility.

Market reaction: stock slides after weak quarter

Following the weak Q3 FY26 outcome, Tejas Networks shares fell 8.9% to ₹380 on the NSE, according to the reported market update. The stock was also noted as down 61.7% in 2025 from ₹1,185.70, reflecting broader investor चिंता around execution delays and cash intensity. The share move was linked to concerns about inventory levels relative to the order book and the extended working capital cycle. The market reaction underscores how sensitive the stock is to visibility on the BSNL add-on PO and shipment timelines.

Key numbers table

Balance sheet and order indicators table

Why this quarter matters for investors

Q3 FY26 reinforced that Tejas’s reported financials are currently dominated by execution timing of a few large domestic projects, particularly BSNL. While wireline sales to private and international customers supported sequential revenue growth, the YoY drop shows the scale impact of deferred large orders. The order book increase to ₹1,329 crore provides some visibility, but inventory at ₹2,363 crore keeps working capital risk elevated. Management’s commentary points to potential catalysts in the form of wireless trials converting into commercial orders and additional wins in BharatNet and private 5G deployments. Still, disclosures make clear that site readiness and purchase order finalisation at customer end can materially shift quarterly outcomes.

Conclusion

Tejas Networks closed Q3 FY26 with revenue of ₹307 crore, a 17% sequential increase, but remained loss-making with a PAT loss of about ₹197 crore. The company reported an expanding order book and multiple project wins, but the delayed BSNL 4G add-on PO has continued to constrain revenue conversion and keep inventory elevated. The next few quarters will be shaped by progress on BSNL order receipt and shipment schedules, along with the closure of wireless trials into commercial deals.