Tejas Networks Posts Steep Q3 Loss Amid Revenue Plunge
Tejas Networks, a domestic telecom equipment manufacturer, announced a consolidated loss of ₹196.55 crore for the quarter ended December 31, 2025. This marks the second consecutive quarter the company has reported a deficit, signaling significant financial headwinds.
Revenue from operations plummeted by approximately 88% to ₹306.79 crore during the reported quarter. This stands in stark contrast to the ₹2,642 crore generated in the same period last year, highlighting a severe downturn in sales. The company attributes a substantial portion of this decline to the deferment of purchase orders from Bharat Sanchar Nigam Limited (BSNL).
BSNL Order Delay Hits Top Line
A key factor impacting performance was a delayed purchase order worth ₹1,526 crore from BSNL for 18,000 sites. Tejas Networks has been a critical supplier to BSNL's 4G network, often supplying network routers. The deferral of this order significantly affected the company's sales pipeline for the quarter.
Despite the downturn, Tejas Networks maintained an inventory valued at ₹2,363 crore. The company expects this inventory to be converted into finished goods and shipped in the upcoming months, potentially bolstering future revenue figures. The revenue mix for the quarter was approximately 85% from the domestic market and 15% from international operations.
Broader Financial Picture and Future Bets
For the nine-month period ending December 31, 2025, Tejas Networks recorded a cumulative loss of ₹697.55 crore. Its revenue from operations declined by 89% to ₹793.69 crore over the same period. The company reported holding ₹537 crore in cash reserves.
Looking ahead, Tejas Networks is pursuing opportunities in private 5G deployments across various sectors, including ports and mines. The company has also been selected to supply 5G radio network equipment for a section of the Delhi-Mumbai railway corridor as part of an Indian Railways' Kavach pilot project.
Additionally, Tejas Networks received ₹84.95 crore in Production Linked Incentive (PLI) for the March 2025 quarter during the reported period, bringing its total PLI incentives under the scheme to ₹397 crore. These incentives provide a small cushion against the operational losses.