Detailed Narrative
Q1 FY27 Performance Overview
Tejas Networks reported Q1 FY27 revenue of ₹402 crores, marking a 20% quarter-on-quarter increase from Q4 FY26. Despite this growth, the company recorded a negative PBT of ₹271 crores, though this was a slight improvement from the negative ₹281 crores reported in the previous quarter. The closing order book for the quarter stood at ₹1,529 crores, a modest increase from ₹1,514 crores in Q4 FY26, with a composition of 93% domestic and 7% international orders.
International Expansion and 5G Wins
A significant highlight of the quarter was the company's first commercial win for end-to-end 5G network deployment in South America, which includes radios, baseband units, and core components. Tejas Networks also secured its first major international 5G customer win in Europe for 5G radio shipments and entered a joint R&D project with a global Tier 1 telco for 5G. These achievements underscore the increasing international traction for Tejas Networks' wireless products and technology.
Product Development and Innovation
The company continued its strong focus on research and development, filing 46 new patents in Q1, bringing its global patent count to 722. Tejas Networks' latest data center interconnect product, the 1600-D3, was recognized as a global finalist among the top three at the prestigious Leading Lights awards for 2026, highlighting its R&D capabilities. Additionally, the company successfully completed field and lab trials for its D2M broadcast radio solution, positioning it for future market opportunities.
BSNL Project Update and Receivables Management
The highly anticipated BSNL 4G expansion order for an additional 26,000 sites is in the final stages of conclusion and is expected to materialize very soon, likely within Q2 FY27. Management anticipates that a substantial portion of the BSNL receivables will be cleared during the current quarter as pending acceptance tests are completed. The increase in net receivables to ₹2,232 crores (from ₹1,905 crores) was attributed to increased shipments this quarter, which contributed to the revenue growth.
AI-Driven Network Evolution and Future Technologies
Tejas Networks is strategically aligning its product roadmap with the rapid global adoption of AI, which is expected to significantly increase network traffic by 20x. The company is enhancing its portfolio to support this demand, including the evolution to 50-gig PON from 10-gig PON and developing WDM networks capable of 1.2-1.6 terabit wavelengths across three bands by 2030. These investments in 5G-Advanced and 6G technologies aim to address the future infrastructure needs for AI and user access.
Working Capital and Debt Position
Inventory levels saw a reduction from ₹2,438 crores to ₹2,358 crores, although they remain high due to advanced procurements for anticipated orders. The company's cash position improved to ₹589 crores from ₹505 crores in Q4 FY26. However, net debt increased to ₹4,277 crores (gross borrowing ₹4,866 crores), primarily due to the increase in net working capital, higher payouts, and continued investments in capex. Management expects the BSNL expansion order to help optimize inventory and receivables, thereby improving working capital.