Tejas Networks announced its Q2 FY26 earnings, with revenue reaching ₹262 crores, a 30% increase compared to the previous quarter. However, the company reported a loss after tax of ₹307 crores, which included ₹190 crores in inventory and warranty-related provisions. The company’s order book stands at ₹1,200 crores. 79% of revenue came from India, while 21% was from international markets.
Financial Performance
In Q2 FY26, Tejas Networks recorded revenue of ₹262 crores, showing a 30% quarter-on-quarter growth from ₹202 crores in the previous quarter. However, the company faced a loss after tax of ₹307 crores, compared to a loss of ₹194 crores in Q1 FY26. This loss includes provisions of ₹190 crores related to inventory and warranty.
Order Book and Revenue Mix
The order book at the end of the quarter stood at ₹1,200 crores. The revenue mix showed that 79% of the revenue was from India and 21% from international markets, with the order book mix being 93% India and 7% international.
Key Business Updates
The delay in receiving the BSNL 4G add-on purchase order of ₹1,500 crores for 18,000 sites impacted revenue and bookings during the quarter. Tejas Networks is awaiting BSNL to issue the purchase orders for additional equipment deployment. Key shipments were made to India private customers and international customers during the quarter.
Wireless Business Highlights
BSNL launched its nationwide 4G network, running on Tejas Networks’ 4G RAN products across 97,500 cell towers. The network carries four petabytes of data traffic daily and has 26 million active subscribers. Tejas Networks launched its new 64T64R massive MIMO radio at the Indian Mobile Congress event. The company also completed its first 5G RAN deployment under BSNL’s captive non-public network program. Multiple POCs are ongoing with domestic and national operators for 4G and 5G radios.
Wireline Business Highlights
Tejas Networks secured additional BharatNet Phase-3 orders for IP/MPLS routers and launched its 1.2 Tbps DWDM transmission system product. The company won multiple 400G deployments for customers in India, Europe, Cambodia, Ghana, and Nigeria, and deployed its first 10-gig CPON solution in Europe.
Additional Provisions
₹190 crores of additional provisions were made, including provisions for contract manufacturing process losses and additional provisions for warranty and inventory obsolescence.
Future Outlook
The company maintains a positive long-term outlook, driven by strong business drivers and rapid technology transitions. Data consumption continues to grow, and new AI applications drive traffic growth across networks. 5G deployment is expected to continue until 2030, and 4G deployments are still expanding in emerging markets.
Inventory and Receivables
Inventory at the end of the quarter stood at ₹2,383 crores. Receivables stood at ₹4,026 crores, with ₹700 crores collected during the quarter. Payables decreased to ₹355 crores, and borrowings stood at ₹4,166 crores.
Source: BSE
