Tejas Networks reported a 55% year-on-year revenue surge to INR 406 crore for Q2 FY27, as losses narrowed compared to the previous year. The company's order book expanded to INR 2,315 crore, fueled by the major BSNL 4G contract. While net debt rose to INR 4,384 crore, management expects significant inventory reduction and debt deleveraging as BSNL shipments accelerate in the coming quarters.
Tejas Networks Reports Strong Revenue Growth in Q2 FY27
Revenue: INR 406 crore (up 55% YoY) | Net Loss: INR 207 crore (narrowed from INR 307 crore).
Reader Takeaway: Revenue is growing rapidly via BSNL, but investors must monitor debt levels and execution-linked cash collections.
What just happened
Tejas Networks has posted a strong financial performance for the second quarter of FY27, with revenue climbing 55% year-on-year to INR 406 crore. The company successfully narrowed its net loss to INR 207 crore, compared to a loss of INR 307 crore in the same quarter last year. The order book has grown substantially to INR 2,315 crore, up from INR 1,529 crore in the previous quarter.
Why this matters
The company is currently scaling its operations to fulfill the massive BSNL 4G network expansion order. Management has confirmed that shipments for 18,685 sites have commenced. This phase is critical as it is expected to convert high inventory levels into cash collections, which will subsequently allow the company to address its rising net debt, currently at INR 4,384 crore.
Business and Operational Performance
Beyond the domestic market, Tejas Networks is making inroads into international territories, including the shipment of end-to-end 5G solutions to a new customer in South America. The company continues to invest heavily in R&D, focusing on AI-native basebands and 6G standards, holding a total of 748 global patents.
Risks to watch
The primary risk for investors is the dependency on the BSNL contract execution timeline. Since the reduction of debt and inventory is contingent on milestone-based payments from BSNL, any delays in project delivery or collection cycles could weigh on the company’s balance sheet. Maintaining financial discipline while balancing high capex requirements remains the key challenge for the coming quarters.
What to track next
Investors should watch for upcoming quarterly reports to see if the promised cash collections materialize. Further updates on the conversion of the BSNL order book and the speed of inventory liquidation will be the most significant indicators of the company's path toward reaching a quarterly positive EBITDA.