Tejas Networks Reports Disappointing FY26 Performance Amid BSNL Slowdown and Order Delays

Tejas Networks Posts Disappointing FY26 Results, Slumps 6%

New Delhi: Tata group-backed Tejas Networks has reported a net loss of ₹909 crore for FY26, compared to a profit of ₹447 crore in the previous year. The company's financial performance was "quite disappointing" due to the completion of the initial 4G project at state-owned Bharat Sanchar Nigam Ltd (BSNL) and large order delays.

Revenue from operations fell by over eight times to ₹1,103 crore, a sharp decline from the previous year. The company's shares slumped nearly 6% in early deals on Thursday to ₹423.50 apiece, reflecting investor concerns over mounting inventories, stretched receivables, and the company's path back to profitability.

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The company has deployed 4G network across about 100,000 sites for state-owned BSNL, with the original order valued at ₹7,492 crore. The company has an order book of ₹1,514 crore, but investors and analysts have raised concerns over its unsold inventory, which stood at ₹2,438 crore at the end of March.

Arnob Roy, the newly appointed managing director and chief executive officer of Tejas Networks, expressed confidence in the company's long-term prospects. "Yes, the results have been quite disappointing, but at the same time, we are positive about our future based on which we have made substantial investments during the year."

The company is expecting a break-even or return to profitability in FY27, with Roy stating, "That's the goal… FY26 has been a year of investment, and in FY27, we expect to see far better financial results." Tejas Networks is banking on international expansion through strategic partnerships, an AI-driven network upgrade "super cycle," and execution of delayed domestic projects to drive a turnaround.

The company recently won a contract from Japan-based NEC Corp. to manufacture and supply 5G massive MIMO radios for a global customer. It is also conducting trials in South Asia and the Americas and exploring opportunities in data centre interconnectivity.

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According to Kranthi Bathini, director of equity strategy at WealthMills Securities, the management has given a positive outlook, but deliveries and execution in the next few quarters will decide how much value accretive the company can be for investors.