Tejas Networks Limited has submitted the transcript of its Q1 FY27 Earnings Conference Call, held on July 28, 2026. The transcript details discussions on revenue performance, international market traction, product development, and future outlook, particularly in relation to AI infrastructure and 5G/6G advancements. Management provided insights into key business drivers, financial metrics, and competitive positioning.
Tejas Networks Discloses Q1 FY27 Earnings Call Transcript
Tejas Networks Limited has officially released the transcript of its Q1 FY27 Earnings Conference Call, which took place on July 28, 2026. This disclosure provides stakeholders with a comprehensive overview of the company’s performance, strategic initiatives, and outlook for the upcoming periods.
Key Highlights from the Call
Financial Performance and Revenue Mix
The call began with an overview of the Q1 results, noting revenues of INR402 crores, representing a 20% growth over Q4. The profit after tax saw a slight improvement, with the order book also experiencing modest growth. The revenue mix was evenly split between India and international markets. During the quarter, the company secured domestic business wins, resulting in an order book that was 93% domestic and 7% international at the end of the quarter.
Operational and Strategic Updates
Key highlights for Q1 included international shipments of 5G radios and domestic shipments of optical and FTTx products. A significant international shipment was made to a customer in Europe, marking a notable customer win for 5G. The company also achieved its first commercial win for an end-to-end 5G network deployment in South America, encompassing radios, baseband units, and the core network. Tejas Networks continued its patent filings, adding 46 patents in Q1, bringing the global count to 722.
The Chief Financial Officer, AVS Prasad, provided financial details, stating revenues around INR402 crores, a 21% quarter-on-quarter increase. The Profit Before Tax (PBT) stood at a negative INR271 crores. Inventory levels decreased from INR2,438 crores to INR2,358 crores. Net receivables increased to INR2,232 crores from INR1,905 crores. The cash position rose to INR589 crores, with gross borrowings at INR4,866 crores and net borrowings at INR4,277 crores.
Future Outlook and Business Drivers
Arnob Roy, Managing Director and CEO, discussed business details and the outlook. He highlighted the end-to-end 5G network win in South America and the supply of 5G massive MIMO radios to a global customer in partnership with NEC. The company was also selected by a global Tier 1 telco for a joint R&D project in 5G. The BSNL 4G expansion order with 26,000 sites is in the final stages of conclusion.
International traction for wireless products is growing, while in the wireline segment, market share is expanding with Tier 1 Indian telcos for optical and FTTx products. The company also supplied optical equipment for 5G backhaul networks and hyperscaler data centers. In the utilities sector, Tejas Networks was selected as a vendor for communication network modernization.
Technological Advancements and AI Impact
Dr. Kumar N. Sivarajan, CTO, elaborated on the impact of AI on the network, noting increased traffic and the need for higher capacity products. He discussed investments in 5G-Advanced and 6G technologies, and the enhancement of the portfolio for AI-driven applications. The company is investing in R&D to support the development of high-bandwidth, low-latency networks required for AI infrastructure.
Question and Answer Highlights
During the Q&A session, Tushar Khurana inquired about BSNL receivables, to which the management confirmed that pending acceptance tests are in their final stages and clearance is expected during the quarter. Jainis Chheda asked about payment cycles for international orders, and it was confirmed that these follow standard terms of 60 to 90 days, unlike performance-linked payments in some domestic orders.
Rajakumar questioned the path to profitability, with the management outlining a strategy of increasing business and market share, leveraging partnerships, optimizing operating expenses, and managing working capital. A timeline of 12 to 18 months was suggested for achieving positive EBITDA and EBIT, and subsequently PAT profitability. Suggestions for AI infrastructure spending benefiting existing products without additional R&D were also discussed.
The discussion also touched upon the D2M opportunity, pending the Prasar Bharati tender, and the competitive landscape for such equipment. Employee costs were noted to be stable, with R&D investments continuing in areas like 5G, AI, and optical technologies.
Conclusion
Tejas Networks expressed optimism for the future, citing strong industry outlooks and customer engagement, especially in the international market. The company highlighted its investments over the past 12 months and its bullish stance on future business growth.
Source: BSE
