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.