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Tejas Networks (NSE:TEJASNET): What Did Management Reveal in Q1 FY27 Earnings Call?

Tejas Networks (NSE:TEJASNET): What Did Management Reveal in Q1 FY27 Earnings Call?

Source: Krish Capital Pty Ltd

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Tejas Networks (NSE:TEJASNET) filed the transcript of its Q1 FY27 Earnings Conference Call, held on 28 July 2026, with the NSE on 3 August 2026. Management disclosed revenue of Rs 402 crore for the quarter, representing 21% quarter-on-quarter growth, alongside updates on international 5G wins and balance sheet movements.

Key Highlights

  • Q1 FY27 revenue stood at Rs 402 crore, a 21% increase quarter-on-quarter compared to Q4 FY26, with revenue split roughly evenly between India and international markets.
  • The company secured its first commercial end-to-end 5G network deployment win in South America, covering radios, baseband units, and core network elements.
  • Gross borrowings rose to Rs 4,866 crore and net borrowings to Rs 4,277 crore, with management attributing the increase to higher working capital and ongoing capital expenditure.
  • Tejas Networks filed 46 new patents in Q1 FY27, taking its cumulative global patent count to 722, of which 380 have been granted.

About the Company

Tejas Networks (NSE:TEJASNET) is a Bengaluru-headquartered telecommunications equipment manufacturer that designs and sells wireline and wireless networking products, including optical transport, FTTx, and 5G radio solutions. The company serves telecom operators, utilities, and government entities across India, Africa, Europe, and emerging markets. It is a subsidiary of Tata Sons and is classified within the Telecom sector.

Announcement in Detail

During the call on 28 July 2026, CEO Arnob Roy stated that Q1 FY27 revenue reached Rs 402 crore, driven by international shipments of 5G massive MIMO radios to a European customer and domestic shipments of optical and FTTx products. The company also disclosed a first commercial win for end-to-end 5G network deployment in South America, encompassing the full Tejas technology stack including radios, baseband units, and core network.

CFO AVS Prasad reported a pre-tax loss of approximately Rs 271 crore for Q1, compared to a loss of Rs 281 crore in Q4 FY26. Inventory declined to Rs 2,358 crore from Rs 2,438 crore, while net receivables after customer advance adjustments rose to Rs 2,232 crore from Rs 1,905 crore. Cash on hand improved to Rs 589 crore from Rs 505 crore in Q4 FY26.

Impact on Investors

The filing shows the company continues to carry a pre-tax loss position alongside elevated gross borrowings of Rs 4,866 crore, which investors will note reflects the company's stated strategy of advance procurement and capacity investment ahead of anticipated order execution. The closing order book at quarter-end was 93% domestic and 7% international.

Shareholders will observe that management referenced the pending BSNL 4G expansion order for an additional 26,000 sites as being in the final stages of award, though no binding order had been confirmed as of the call date. The disclosed terms indicate this remains a potential future revenue event, not a contracted commitment.

Sector / Market Context

India's telecom sector continues to see large-scale network investments, with BSNL's 4G rollout using indigenously developed technology representing one of the larger government-backed infrastructure programmes. Globally, industry bodies including GSMA project 5G connections to accelerate in emerging markets through 2030, with fixed wireless access subscriptions forecast to reach 90 million worldwide. These trends form the backdrop against which Tejas Networks is expanding its international wireless product portfolio.

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