Tejas Networks Limited — Q4 FY26 earnings call

Call held 15 Apr 2026

Management summary

Tejas Networks reported an 8.47% QoQ revenue growth in Q4 FY26 to ₹333 crores, but continued to post significant PAT losses for both the quarter (₹211 crores) and the full year (₹909 crores). The order book showed strong YoY growth of 48.58% to ₹1,514 crores, largely driven by India business and including a new NEC deal. The company highlighted strategic wins in wireless and wireline, but faced challenges from project delays and high working capital, with management targeting PAT positivity in FY27.

Highlights

  • Q4 FY26 Revenue increased to ₹333 crores from ₹307 crores in Q3, an 8.47% QoQ growth.

  • EBIT improved from a negative ₹239 crores in Q3 to a negative ₹219 crores in Q4.

  • Order book grew significantly by 48.58% YoY to ₹1,514 crores at the end of Q4 FY26 from ₹1,019 crores in Q4 FY25.

  • Secured an initial order for 4G network expansion from a customer in South Asia.

  • Signed an agreement with NEC to manufacture and supply 5G Massive MIMO radios for a global customer, with revenue expected in FY27.

Concerns

  • Reported a net PAT loss of ₹211 crores in Q4 FY26, following a ₹197 crores PAT loss in Q3 FY26.

  • Full year FY26 saw a substantial PAT loss of ₹909 crores.

  • High receivables at ₹3,258 crores and inventory at ₹2,438 crores at quarter-end, raising analyst concerns about working capital.

  • Delay in the BSNL 4G additional Purchase Order (PO) for 18,000 sites, despite inventory readiness.

  • Management acknowledged that several large customer projects were delayed, leading to significant revenue shortfall and financial loss in FY26.

Key financials

  1. Revenue ₹333 Cr +8.5%QoQ
  2. EBIT ₹-219 Cr +8.4%QoQ
  3. PAT Loss ₹211 Cr -7.1%QoQ
  4. Full Year Revenue ₹1,103 Cr
  5. Full Year PAT Loss ₹909 Cr
  6. Inventory ₹2,438 Cr +3.2%QoQ
  7. Receivables ₹3,258 Cr
  8. Cash Position ₹505 Cr

What they filed

Q1 FY27: revenue up 99.0%, net profit down 4.1% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,811 2,642 1,907 202 262 −91%307 −88%333 −83%402 +99%
EBITDA535 372 122 -136 -294 −155%-134 −136%-118 −197%-100 +26%
Net profit275 166 -72 -194 -307 −212%-197 −219%-211 −193%-202 −4%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,514 Cr

as of 2026-03-31 quantified

48.6% YoY

Execution

a good portion of this will be converted to revenues in this current financial year (FY27).

Composition

  • India (geography) 83%
The order book showed significant year-on-year growth, dominated by the India business, and includes the initial PO from the NEC deal.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Gross ₹4,035 Cr · Net ₹3,531 Cr
    The cash position at the end of the quarter was INR505 crores and a net debt of INR3,531 crores. At gross level, the borrowings were INR4,035 crores at the end of the quarter.
  • Liquidity Cash ₹505 Cr
    The cash position at the end of the quarter was INR505 crores

Guidance & targets

Profitability

  • PAT positive Profitability · FY27 · High confidence Yes
    Pratap Maliwal: Are we expecting to be PAT positive in FY '27? Management: Yes, we don't give the financial guidance, but yes, that's the goal.

    — Management

Receivables

  • BSNL 4G collections Receivables · FY27 · Medium confidence Significant portion collected
    A significant portion of that should get collected this year. Okay, that's again also linked to milestones, and those progressively are getting complete. So, we expect that to lead to collections over the next few quarters.

    — Sumit Dhingra

R&D Investments

  • R&D spend R&D Investments · FY27 · Medium confidence Continue with optimization
    So, we will continue our R&D investments, but obviously we will tailor it to the business outlook that we have and how we see the business maturing. So, as I said, we will be optimizing it to make sure that we get much better financial results. But as of now, we plan to continue with our investments because the business outlook that we see in FY27, we should be able to achieve better financial results even with our current investments and cost structure. But we will keep optimizing that as we see the business progress during the year.

    — Arnob Roy

Revenue

  • NEC deal revenue recognition Revenue · FY27 · High confidence Revenue will happen
    Yes, no, no. From this new contract with NEC, we will see the revenue for that in FY27. During the current financial year.

    — Arnob Roy

What to watch in Q1 FY27

BSNL 4G additional PO status and execution

next quarter
Current Active discussions, inventory ready, PO not yet received
Target PO received and execution commenced

Why it matters

This is a significant order that has been delayed and is crucial for revenue generation and inventory utilization.

So, active discussions are still going on with the BSNL team on the sites at which they have to have these 4G sites and their configurations... We are still keeping our inventory here for delivering to these sites in a quick turnaround once we get the PO, but yes, as of now the discussions are definitely on.

Risks & concerns

  • Significant financial losses in FY26

    high

    Full year FY26 PAT loss of ₹909 crores and Q4 PAT loss of ₹211 crores.

    Management acknowledged

  • Delay in large customer projects

    high

    Several large wireline and wireless projects were delayed, leading to revenue shortfall and financial loss.

    Management acknowledged

  • High receivables and inventory

    medium

    Receivables at ₹3,258 crores and inventory at ₹2,438 crores, partly due to BSNL 4G procurement.

    Analyst acknowledged

  • Uncertainty and delay in BSNL 4G additional PO

    medium

    Active discussions ongoing for the 18,000 sites PO, but no firm order yet.

    Analyst acknowledged

  • Funding of intangible investments with debt

    medium

    Analyst raised concern about funding significant intangible assets (₹700 crores) with debt if profitability targets are not met.

    Analyst acknowledged

  • Potential margin compression from rising component costs

    low

    Memory prices have increased, but management is renegotiating prices and views memory as a small component of overall product cost.

    Analyst downplayed

Q&A highlights

6 direct
Delay in earnings call and results upload Direct
Yes, I think this time, especially, we had a lot of problems in uploading, and that took a lot more time. So, we had to postpone a little bit. And once again, I apologize for the entire delay and the short window between the upload and the start of this call. We'll make sure it doesn't happen in the future.

Analyst expressed frustration over repeated delays, highlighting a recurring operational issue for the company.

Asked by Avnish Kumar

Shareholder disappointment with financial performance and lack of future clarity Direct
I agree, Avnish. I think, of course, as part of the company and its management, I mean, it's been disappointing for us also as well. There was a lot of business that, as you said, as I mentioned, that we had planned for, based on which we had made investments that got delayed.

Analyst directly challenged management on poor financial results and the absence of forward guidance, prompting an acknowledgment of disappointment and reasons for delays.

Asked by Avnish Kumar

Status of BSNL 4G additional Purchase Order (PO) Direct
Yes, this is Sanjay Malik here. So, thanks for this question. So, yes, it is the same add-on PO which has been there. So, active discussions are still going on with the BSNL team on the sites at which they have to have these 4G sites and their configurations. So, that discussion has been happening and quite active discussion. We are still keeping our inventory here for delivering to these sites in a quick turnaround once we get the PO, but yes, as of now the discussions are definitely on.

Provided an update on a significant, delayed order, indicating ongoing discussions and readiness for quick execution once the PO is received.

Asked by Shailesh Jahagirdar

Revenue recognition and scalability of the NEC deal Direct
Okay. So for this deal, actually so that basically means that we are entering this account with NEC. So that is the first PO which has been received, which is part of the INR1,500 crores. And as we go along, purchase orders would come as the rollout progresses through the year.

Clarified that the NEC deal is already part of the current order book and will contribute to FY27 revenues, with potential for follow-on orders.

Asked by Pratap Maliwal

Impact of rising memory/chip prices on product margins Partial
Yes. The cost of memory does impact the cost of our products, even though it's a small component of our product cost... But nevertheless, I think we are kind of making sure it is accounted in our cost and basically renegotiating and re-offering our new prices with the escalation to make sure that we protect our margin.

Addressed concerns about cost inflation, indicating that while there's an impact, management is taking steps to mitigate margin compression.

Asked by Pranav Kshatriya

Significant increase in 'Intangibles under development' on the balance sheet Direct
So, I think intangible under development commonly consists of our product development effort and also related to the IP or the technology license or the technology transfer that we did with NEC early part of or towards the end of the previous year. And that is partly getting reflected in the intangible under development.

Explained the nature of a large balance sheet item, linking it to strategic technology investments and partnerships.

Asked by Ritesh Poladia

High receivables and inventory, especially related to BSNL Partial
So I think on receivables, I broadly clarified in response to the earlier question. We are expecting to get the balance collections from BSNL significantly during this year, and that should lead to improvement from a receivable standpoint. On inventory also, I think, as you alluded to, I think a large part of this is also coming from the advanced procurement action that we took for the BSNL add-on order.

Addressed concerns about working capital efficiency, providing a timeline for BSNL collections and explaining the inventory build-up.

Asked by Darshil Jhaveri

Path to profitability and goal for FY27 Direct
Yes, I think we expect much better business in FY '27 based on the opportunities that we see. And with that and with we will also manage our costs at the current level and optimize as required to make sure that we have a path to profitability because, you know, this has, as I said, this has been a one-off year where business got delayed, but we didn't want to compromise on our investments for the future opportunities.

Management explicitly stated the goal of achieving PAT positivity in FY27, providing a key target for investors to track.

Asked by Pratap Maliwal

2 min read 6 chapters

Detailed narrative

Q4 FY26 Financial Performance and Full Year Overview

Tejas Networks reported Q4 FY26 revenue of ₹333 crores, an 8.47% increase from ₹307 crores in Q3 FY26. Despite this sequential growth, the company recorded a PAT loss of ₹211 crores in Q4, following a ₹197 crores loss in the previous quarter. For the full fiscal year FY26, the company's revenue stood at ₹1,103 crores, with a substantial PAT loss of ₹909 crores. Management attributed the full-year losses to delayed large customer projects and continued investments despite revenue shortfalls.

Order Book Growth and Composition

The company's order book demonstrated robust growth, reaching ₹1,514 crores at the end of Q4 FY26, a 48.58% increase from ₹1,019 crores in Q4 FY25. The India business continues to dominate the order book, contributing approximately 83% of the total, excluding the BSNL 4G project. A significant portion of this order book is expected to convert into revenues during the current financial year (FY27).

Wireless Business Developments and Strategic Partnerships

In the wireless segment, Tejas Networks signed an agreement with NEC to manufacture and supply 5G Massive MIMO radios for a global customer, with revenue expected in FY27. The company also secured an initial order for 4G network expansion in South Asia and is conducting multiple field trials for 4G and 5G RAN products across South Asia and the Americas. A 5G Proof of Concept (POC) was successfully completed in South America.

Wireline Business Highlights and Infrastructure Projects

For its wireline business, Tejas Networks completed significant shipments of IP/MPLS routers for BharatNet Phase III, where it is the largest supplier in terms of circles. The company also supplied 100 gig and 400 gig WDM systems to a Tier-1 Indian telco for 5G backhaul and enterprise services. Notably, Tejas was selected to build a nationwide, multi-terabit DWDM network for a hyperscaler data center application in India and implemented a multi-country backbone network for a global sporting event.

Capital Structure and Receivables Management

At the end of Q4 FY26, the company reported receivables of ₹3,258 crores and inventory of ₹2,438 crores. The cash position stood at ₹505 crores, with a net debt of ₹3,531 crores and gross borrowings of ₹4,035 crores. Management expects significant collections from BSNL related to the 4G order to occur in FY27, which should lead to a reduction in receivables over the next few quarters. The inventory, partly procured for the BSNL add-on order, is also expected to be utilized for global opportunities.

Future Outlook and Path to Profitability

Management expressed a positive outlook for FY27, aiming for the company to be PAT positive, driven by better business opportunities and cost optimization. They affirmed their commitment to continued R&D investments, tailoring them to business maturity, to ensure readiness for future technologies like AI-driven network transformation. The company believes its current investments and cost structure will enable better financial results in FY27.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Telecommunication earnings calls