Whalesbook
Tejas Networks concluded fiscal year 2026 with a net loss of INR909 crores. The fourth quarter of FY26 saw a loss of INR211 crores, with full-year revenues reported at INR1,103 crores.
Financial Performance and Order Book Growth
The company's financial performance was significantly impacted by delays in large customer projects across both its wireline and wireless product segments. This led to the net loss for the fiscal year.
However, Tejas Networks saw a robust increase in its order book, which grew to INR1,514 crores by the end of Q4 FY26, up from INR1,019 crores in the previous fiscal year. This surge signals considerable future revenue potential.
Strategic Investments and Market Positioning
FY26 was a year characterized by strategic investments in technology and new product development, aimed at positioning the company for future growth. These efforts include leveraging AI trends and strengthening partnerships for data center connectivity.
As part of the Tata Group, Tejas Networks has been expanding its capabilities. In August 2023, it secured a substantial INR7,492 crore contract from BSNL, supplied via TCS, for its 4G/5G network equipment. The company has already completed supply for over 100,000 sites from this deal, contributing to FY25 revenues.
Global Partnerships Boost Outlook
International expansion is a key focus, highlighted by recent strategic alliances. In early 2026, Tejas Networks partnered with NEC Corporation to manufacture and supply 5G massive MIMO radios, aiming to strengthen global 5G RAN supply chains.
Additionally, a collaboration with Rakuten Symphony was established to co-develop and market Open RAN solutions worldwide, broadening the company's market reach.
What Shareholders Can Expect
Shareholders can anticipate a strong focus on recovering from FY26 losses, with the company targeting profitability in FY27. New technology investments and product launches, particularly in 5G and AI-driven networks, are expected to become significant revenue drivers.
The expanded international footprint offers diversification beyond domestic orders, while the company anticipates substantial collections from BSNL in the current financial year to improve its Days Sales Outstanding (DSO).
Key Risks to Monitor
Significant execution risk remains due to the ongoing delays in large customer projects for wireline and wireless products, which directly impacted FY26 results. Investors are also watching concerns regarding inventory levels and stretched receivables, which could affect the path back to profitability.
Competitive Landscape
Tejas Networks operates in a competitive market alongside global players like Nokia and Ericsson, which dominate private 5G markets. Domestically, it faces competition from HFCL in broadband access and BharatNet tenders, and Sterlite Technologies (STL) in optical networking. While benefiting from the 'Make in India' initiative and the exclusion of Chinese vendors, the company experiences margin pressure as it scales manufacturing.
Key Figures
- Full Year FY26 PAT Loss: INR909 crores
- Q4 FY26 Revenue: INR333 crores
- Order Book (End Q4 FY26): INR1,514 crores
Looking Ahead
Future tracking points include monitoring BSNL's additional purchase orders for 18,000 sites and the speed of delivery. Investors will also watch revenue generation from the NEC 5G Massive MIMO deal, expected in FY27, and progress in international markets like South Asia and the Americas.
Continued observation of new product launches, including the 5G 64 TR massive MIMO radio and converged 4G/5G core, will be important. Furthermore, assessing the impact of improved DSO and collections from BSNL on working capital, and tracking the integration of AI trends for network transformation, will be key.