This article first appeared on GuruFocus .
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Revenue:INR307 crores in Q3 FY26, a 17% increase from INR262 crores in the previous quarter.
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Profit After Tax:INR197 crores for the quarter.
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Order Book:INR1,329 crores at the end of the quarter, up from INR1,200 crores in the previous quarter.
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EBIT:Negative INR239 crores, improved from negative INR394 crores in the previous quarter.
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Inventory:INR2,363 crores, similar to the previous quarter.
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Trade Receivables:INR3,284 crores, down from INR4,026 crores in the previous quarter.
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Net Debt:INR3,349 crores, reduced from INR3,738 crores in the previous quarter.
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Gross Debt:INR3,885 crores.
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PLI Incentives:INR85 crores received in Q4, totaling INR397 crores cumulatively.
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Patents:26 patents filed in Q3, with a cumulative total of 613 global patents filed, 370 granted.
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Release Date: January 09, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Tejas Networks Ltd ( BOM:540595 ) reported a 17% increase in revenue for Q3 FY26, reaching INR307 crores compared to the previous quarter.
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The company has a strong order book of INR1,329 crores, predominantly from Indian customers.
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Tejas Networks Ltd has been selected as an IGAM supplier for a pilot project on the Delhi Mumbai railway corridor, enhancing railway safety.
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The company won multiple packages for Bharatnet, becoming one of the largest suppliers of IBM pillars routers.
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Tejas Networks Ltd received INR85 crores as PLI incentives for Q4, with a cumulative total of INR397 crores in PLI incentives.
Negative Points
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The company continues to report significant losses, with a negative EBIT of INR239 crores for the quarter.
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There is a delay in the receipt of the BSNL 4G add-on purchase order, affecting revenue expectations.
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Tejas Networks Ltd's inventory levels remain high, primarily due to procurement for the delayed BSNL 4G order.
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The company faces a long working capital cycle, particularly with government projects like BSNL.
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There is uncertainty regarding the timeline for achieving profitability, with continued investments in R&D and international expansion.
Q & A Highlights
Q: What is the path to profitability for Tejas Networks, given the significant losses reported in recent quarters? A: Arnob Roy, CEO, explained that the company has made significant investments in R&D and expanding its product portfolio, particularly in wireless products. The path to profitability involves scaling the business both internationally and in India, leveraging new products and international market opportunities. The focus is on growing the business to a critical size that supports these investments.
Q: Why is Tejas Networks holding a large inventory, and when will it normalize? A: The large inventory is primarily for executing the BSNL 4G add-on order. Once the purchase order is received, the inventory will deplete rapidly as the project is executed. CFO Sumit Dhingra noted that the working capital cycle is currently high due to this specific reason, and efforts are being made to improve inventory management.
Q: Can you provide more details on the patents filed by Tejas Networks? A: CTO Kumar Sivarajan stated that most patents are related to 5G Advanced and 6G technologies, specifically standards-related patents. These are filed in anticipation of upcoming standards in 3GPP for 5G Advanced and 6G.
Q: What is the status of the CEO appointment following Mr. Anand's resignation? A: Arnob Roy mentioned that the board is actively working on appointing a new CEO. However, the business operations continue as planned, and the absence of a CEO has not affected regular business activities.
Q: What is the reason for the delay in the BSNL 4G expansion order? A: The delay is attributed to BSNL's operational readiness for rolling out the network, including site readiness. There are no issues with Tejas Networks' products or integration efforts by system integrators like TCS.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
