Tejas Networks swings to massive ₹194 cr net loss in Q1 FY26 on delayed order execution and weak demand. Stock slides ~10%, while leadership pins hopes on a ₹1,241 cr order book and upcoming BSNL order.
Mumbai, July 15, 2025:
Tejas Networks came into sharp focus today after announcing a net loss of ₹193.9 cr in Q1 FY26—a stark reversal from a ₹77 cr profit in the same quarter last year. Its shares plunged nearly 10%, hitting a 52-week low of ₹629.65 on the BSE.
🚨 Q1 FY26 at a Glance
- Revenue collapse: Q1 revenue tumbled 87% YoY to just ₹202 cr, down from ₹1,563 cr a year earlier
- Profit swing: Pre-tax loss reached ₹297 cr, compared to a ₹122 cr PBT profit in Q1 FY25
- EBITDA sharply negative: EBITDA turned negative ₹135.7 cr, reversing from a ₹231 cr positive EBITDA the prior year
What the Management Says
Arnob Roy, COO, explained the drop was due to order delays, particularly from BSNL, despite winning key contracts including BharatNet Phase 3 and optical equipment deals .
CFO Sumit Dhingra confirmed the loss stemmed largely from lower revenue but pointed to a robust ₹1,241 cr order book, which grew 22% QoQ. He added that a significant BSNL order worth ₹1,526 cr is expected soon following TCS’s contract win .
Looking Ahead
- Order momentum: The anticipated BSNL purchase is likely to stabilize Q2 performance.
- Strategic alliances: Partnerships with Rakuten Symphony, Intel, and mobile OEMs are expected to strengthen international 4G/5G market entry
- Optimism amid weakness: While demand remains soft, the order pipeline and execution are seen as key drivers for improvement.
Market Reaction & Technicals
- Shares dropped roughly 50% year-to-date, with a 41% decline YTD .
- The stock’s sharp fall may tempt investors seeking value ahead of potential order inflows.
⚖️ Verdict
Tejas Networks posted a severe setback this quarter—an across-the-board drop in revenue and earnings. However, a strong order backlog and upcoming BSNL contract offer hope for a financial rebound. With its stock at multi-year lows, the firm’s recovery hinges on timely delivery and execution. For investors and analysts alike, Q2 will be pivotal in assessing whether the turnaround materializes.