Tejas Networks Q4 FY26: Revenue up 8%, net loss 211cr

Key takeaway from the quarter

Tejas Networks closed Q4 FY26 with revenue of INR 333 crore, an 8% sequential increase. The quarter still ended in a net loss of INR 211 crore, extending a loss-making run despite the sequential revenue improvement. For the full year, consolidated revenue came in at INR 1,906.94 crore, while the consolidated net loss stood at INR 908.89 crore. Management positioned profitability as a stated goal, but did not provide quantitative revenue or margin guidance.

What stood out in FY26 results

The FY26 revenue split remained heavily domestic, with 88% from India and 12% from international markets. The company described FY26 as a year of consolidation alongside major product launches and international expansion in wireless. It also flagged leadership changes during the year. Even with these operational milestones, the annual loss and negative EBIT underline the gap between scale-up execution and profitability.

Profitability metrics remained negative

Tejas Networks reported EBIT of negative INR 219 crore in Q4 FY26 and negative INR 1,085 crore for FY26. Alongside the net loss, these figures highlight continuing pressure from the cost structure and provisioning. The company also disclosed significant provisions in FY26, including inventory obsolescence and warranty provisioning, which typically reflect reassessments of realizable inventory value and expected after-sales costs.

Order book grew sharply at year-end

The order book at year-end was INR 1,514 crore, up 49% YoY. The company attributed the larger pipeline to wins across 5G Massive MIMO, BharatNet Phase III, and hyperscaler DCI (data centre interconnect) deployments. For investors, the order book growth is a key positive signal, but conversion into revenue and cash flows will depend on execution cadence and customer deployment schedules.

Working capital stayed heavy

Balance sheet items indicated elevated working capital. At quarter-end, inventory was INR 2,438 crore, while receivables were INR 3,258 crore and payables were INR 478 crore. Net working capital was reported at INR 4,138 crore. These numbers matter because they determine how much cash remains tied up in operations, especially in project-led businesses where billing and collections can lag shipments and deployments.

Debt and liquidity position

Tejas Networks ended the year with cash and cash equivalents of INR 102.68 crore. It reported net debt of INR 3,531 crore and gross borrowings of INR 4,035 crore. The leverage metrics, combined with ongoing losses, keep attention on execution and collections, particularly as working capital remains high.

Cost provisions and what they indicate

For FY26, cost of materials consumed was INR 1,316.46 crore. The company also booked a provision for inventory obsolescence and write-down of INR 170.39 crore during the year. Separately, FY26 expenses included a provision for warranty expenses of INR 108.09 crore. Such provisions can swing reported profitability, but they also provide signals on product lifecycle management, supply chain planning, and field performance assumptions.

Going concern note and guidance commentary

The company said its financial statements were prepared on a going concern basis, with no material uncertainties noted. On outlook, it did not give quantitative guidance on revenue or margins, but reiterated profitability as a goal. In the absence of explicit guidance, investors typically track order book conversion, working capital movement, and debt trajectory as the most immediate indicators of operational improvement.

Snapshot table: Q4 FY26 vs FY26

Balance sheet and working capital indicators

Market context from recent quarters

The company’s Q4 sequential revenue rise follows a Q3 FY26 quarter in which revenue was reported at INR 307 crore and the quarter ended with a net loss of INR 197 crore, alongside an order book of INR 1,329 crore. The Q4 numbers show modest top-line improvement and a further step-up in the order book, but the persistence of losses suggests that the cost base and provisioning continue to dominate near-term profitability.

Why this earnings print matters

Q4 FY26 underlines two competing realities. One, Tejas Networks is still booking meaningful wins in priority network buildouts such as 5G radio and BharatNet-linked programs. Two, the company’s financial profile remains constrained by negative EBIT, elevated working capital, and a high-debt position relative to year-end cash. How quickly order book translates into revenue and collections will be central to any improvement in margins and balance sheet comfort.

Conclusion

Tejas Networks finished Q4 FY26 with higher sequential revenue and a stronger order book, but also with continued losses and negative EBIT. The next few quarters will be closely tracked for execution progress, working capital release, and any formal guidance updates.