Tejas Networks Partners NEC for 5G Radio Manufacturing, Boosts Global Supply Chain

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AuthorSatyam Jha|Published at:
Tejas Networks Partners NEC for 5G Radio Manufacturing, Boosts Global Supply Chain
Overview

Tejas Networks has entered into a significant agreement with Japan's NEC Corporation to manufacture and supply 5G Massive MIMO radios. This strategic partnership is designed to diversify the global supply chain, enhance resilience for customers, and foster co-creation of advanced 5G solutions. The deal marks an expansion of Tejas Networks' international business and strengthens its position in the global telecom equipment market.

Tejas Networks and NEC Forge Strategic Alliance for 5G Radio Manufacturing

Tejas Networks reported a loss of ₹196.55 crore with revenue of ₹314.33 crore in Q3 FY26.
This partnership with NEC Corporation aims to bolster global supply chains and co-create advanced 5G solutions.

Reader Takeaway: Deal boosts supply chain resilience; execution risks and recent financials loom.

What just happened (today’s filing)

Tejas Networks has announced a significant agreement with Japan's NEC Corporation. The pact focuses on the manufacturing and supply of 5G Massive MIMO radios.

This collaboration is strategically designed to enhance the resilience of the global supply chain for telecommunications equipment.

It aims to diversify manufacturing bases and mitigate risks for customers by building a robust global ecosystem.

The deal signifies an important step in expanding Tejas Networks' international business operations and collaborative product development.

Why this matters

This partnership allows Tejas Networks to tap into NEC's expertise and market presence, potentially accelerating the development and deployment of cutting-edge 5G technologies.

By manufacturing jointly, both companies can optimize production, reduce lead times, and ensure a more stable supply of critical 5G components.

For the Indian market and the global telecom sector, this collaboration can lead to more cost-effective and readily available advanced 5G infrastructure solutions.

The backstory (grounded)

Tejas Networks, a key player in India's telecom equipment manufacturing sector and part of the Tata Group, has been actively expanding its capabilities. The company secured a substantial ₹7,492 crore contract from BSNL in October 2023 for 4G/5G RAN equipment, showcasing its domestic strength. Tata Sons, through Panatone Finvest, acquired a majority stake in Tejas Networks in April 2022, providing significant financial backing and strategic direction.

Globally, NEC Corporation has also been active in the 5G space, developing new Radio Units (RUs) with Massive MIMO technology scheduled for release in early fiscal year 2026. Earlier, in October 2025, Tejas Networks and NEC signed a USD 500 million MoU focused on co-developing 6G technologies and promoting Indian 5G exports.

What changes now

  • Tejas Networks gains access to NEC's advanced 5G radio technology and manufacturing prowess.
  • The company strengthens its global supply chain capabilities, reducing reliance on single manufacturing locations.
  • Customers can expect more resilient and potentially cost-effective 5G infrastructure components.
  • This collaboration could pave the way for future joint development in next-generation wireless technologies like 6G.
  • It reinforces India's position as a growing hub for telecom equipment manufacturing and innovation.

Risks to watch

  • The effectiveness of the partnership hinges on seamless execution and integration of manufacturing processes.
  • As highlighted in the company's forward-looking statements, strategic implementation, technological shifts, and market dynamics pose inherent risks.
  • Recent financial performance, including a Q3 FY26 net loss of ₹196.55 crore and significant YoY revenue decline, could impact the company's ability to invest and execute large-scale projects.

Peer comparison

Tejas Networks operates in a competitive landscape alongside other Indian telecom equipment manufacturers like ITI Limited, HFCL, and Sterlite Technologies. While ITI is noted for having the highest assets among Indian players, Tejas Networks has been aggressive in securing large domestic contracts and expanding its global footprint. This partnership with NEC could provide Tejas Networks with a competitive edge in advanced 5G radio technology against both domestic and international rivals.

Context metrics (time-bound)

  • In Q3 FY26 (ended December 2025), Tejas Networks reported a consolidated net loss of ₹196.55 crore, a significant YoY change from a profit in the previous year.
  • The company's revenue from operations in Q3 FY26 stood at ₹314.33 crore, marking an 88.2% decline year-on-year.
  • For the full fiscal year FY25, Tejas Networks reported record net revenue of ₹8,923 crore and a Profit After Tax (PAT) of ₹447 crore, reflecting strong prior performance.

What to track next

  • Monitor the progress of the manufacturing agreement and the timeline for initial production runs.
  • Observe how this partnership impacts Tejas Networks' order book and revenue growth in upcoming quarters.
  • Track further joint development activities with NEC, particularly concerning 6G technologies.
  • Keep an eye on Tejas Networks' financial performance, especially its ability to convert recent losses into profitability.
  • Assess the company's success in diversifying its international business through this alliance.
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