Tejas Networks Posts FY26 Loss as BSNL Project Wind-Down Impacts Financials

Tejas Networks Posts Sharp Weaker Financial Performance for FY26

Tata Group-backed Tejas Networks reported a net loss of Rs 909 crore for FY26, compared to a profit of Rs 447 crore in the previous year, as the company described the period as a "year of transition" after completing its large 4G project for Bharat Sanchar Nigam Ltd (BSNL).

The company's revenue from operations dropped sharply to Rs 1,103 crore, underscoring the extent of the slowdown during the transition year. The announcement came alongside the appointment of Arnob Roy as managing director and chief executive officer, effective immediately through August 2028, with Preetham Uthaiah stepping in as chief operating officer.

Quarterly Performance

For the March quarter, Tejas Networks reported its fifth consecutive quarterly loss. Net loss widened to Rs 211 crore from Rs 72 crore a year earlier, while revenue fell 82.5 percent year-on-year to Rs 333 crore.

| Quarter | Net Loss (Rs crore) | Revenue (Rs crore) | | --- | --- | --- | | FY25 Q4 | 72 | 1,907 | | FY26 Q1 | 141 | 553 | | FY26 Q2 | 164 | 394 | | FY26 Q3 | 175 | 384 | | FY26 Q4 | 211 | 333 |

The company attributed the year's performance to delays in new orders and the winding down of its largest project, which involved deploying 4G infrastructure across nearly 100,000 sites for BSNL under a Rs 7,492 crore deal.

Management acknowledged that the year's performance fell short of expectations, but expressed optimism about the company's future prospects. The company is targeting a turnaround in FY27, with management indicating that FY26 was largely a year of investments and strategic reset.

Challenges Ahead

Despite the weak financials, concerns remain around execution and inventory levels. The company ended March with an order book of Rs 1,514 crore, while inventory stood significantly higher at Rs 2,438 crore. A major contributor to this build-up is the pending Rs 1,526 crore add-on order from BSNL for over 18,000 additional sites, which has been under discussion for more than a year.

However, the company noted that its 4G and 5G radio equipment can be repurposed for other global customers, including private network deployments, reducing the risk of inventory obsolescence. Looking ahead, the company is banking on international expansion, next-generation network upgrades, and delayed domestic projects to drive recovery.

International Expansion

The company recently secured a contract from Japan's NEC Corporation to supply 5G massive MIMO radios for a global customer, while also conducting trials in South Asia and the Americas. It is exploring opportunities in data centre interconnect solutions as well. India continues to dominate its order pipeline, accounting for about 83 percent of the total order book, with the remaining 17 percent coming from overseas markets.

On the cost front, the company flagged rising memory chip prices due to supply constraints but said it is mitigating the impact through pricing renegotiations and cost adjustments to protect margins.