Highlights
- Net loss widened to INR 909 Cr in FY26 despite revenue growth.
- Order book rose 49% YoY, indicating visibility for future execution.
- Q4 revenue growth driven mainly by domestic wireline product sales.
Shares of Tejas Networks Limited (NSE:TEJASNET) declined 4.10% to ₹431.40 on April 16, 2026, compared to the previous close of ₹449.85. The stock traded between ₹422.50 and ₹439.65 during the session, reflecting selling pressure following earnings updates.
Financial Performance Snapshot
The company reported Q4FY26 revenue of INR 333 Cr, up from INR 307 Cr in Q3FY26. Full-year FY26 revenue stood at INR 1,103 Cr.
However, losses widened during the year. The company reported a net loss of INR 211 Cr in Q4FY26 compared to INR 197 Cr in Q3FY26. For FY26, net loss stood at INR 909 Cr.
Earnings were impacted by higher expenses, including warranty provisions of INR 39.3 Cr during the quarter. EBIT and PBT remained negative across quarters, indicating continued pressure on profitability.
Order Book and Revenue Mix
The order book increased to INR 1,514 Cr at the end of Q4FY26, compared to INR 1,019 Cr in Q4FY25, marking a 49% year-on-year rise.
Revenue contribution remained largely domestic, with India accounting for 88% of Q4 revenue, while international markets contributed 12%. The closing order book mix stood at 83% domestic and 17% international.
Balance Sheet Position
Inventory levels rose to INR 2,438 Cr in Q4FY26 from INR 2,363 Cr in Q3FY26, indicating upcoming shipments. Trade receivables remained largely stable at INR 3,258 Cr.
Cash and cash equivalents stood at INR 505 Cr at the end of the quarter. Net debt increased to INR 3,531 Cr from INR 3,349 Cr in Q3FY26, reflecting higher borrowings.
Business Developments
During the quarter, the company signed an agreement with NEC to manufacture and supply 5G massive MIMO radios for a global customer.
It also received purchase orders for 4G RAN expansion in South Asia and continued field trials for 4G and 5G products across multiple geographies, including South America.
In the wireline segment, the company completed shipment of over 17,000 IP/MPLS routers under BharatNet Phase III and supplied high-capacity DWDM systems for telecom and enterprise applications.
Additionally, the company was selected for a data center interconnect project in India and deployed multi-country networks for a global sporting event.
Corporate Developments
The company announced leadership changes, including the appointment of Arnob Roy as Managing Director and Chief Executive Officer, subject to shareholder approval.
Other appointments include a new Chief Operating Officer and Chief Financial Officer, alongside changes in the board composition.
Key Risks
- Continued losses and negative EBIT impacting financial stability.
- Rising debt levels increasing financial leverage concerns.
- Dependence on large telecom orders for revenue visibility.
- Execution risks in scaling 4G and 5G deployments globally.
Summary
Tejas Networks reported higher revenue in FY26 but continued to post losses, with net loss reaching INR 909 Cr. Order book growth indicates future execution potential, but rising debt and inventory levels remain key concerns. Stock decline reflects investor reaction to weak profitability despite business developments in 5G, wireline solutions, and global project wins during the quarter.
FAQs
- Why did Tejas Networks stock fall after Q4FY26 results?
The stock declined due to widening losses, negative profitability metrics, and rising debt despite growth in revenue and order book. - What is the order book position of Tejas Networks?
The company reported an order book of INR 1,514 Cr at the end of Q4FY26, up 49% year-on-year. - What drove revenue growth in Q4FY26?
Revenue growth in Q4FY26 was mainly driven by wireline product sales to domestic and international customers.