Tejas Networks Ltd

Tejas Networks Limited reported Q2 FY27 revenue of INR406 crores, up 55% year-on-year, driven by shipments of optical IP, FTTx products, and initial 5G solution deliveries. Profit after tax improved to a loss of INR207 crores from INR307 crores in Q2 FY26. The order book reached INR2,315 crores, with 96% from India, primarily due to an LOI for 18,685 4G sites for BSNL. Inventory levels remained high at INR2,314 crores, expected to decrease as BSNL orders are fulfilled. Net debt increased to INR4,384 crores due to capex and operational funding. Management highlighted growth in wireless and wireline segments, including new international engagements, 5G Advanced and 6G R&D, and AI-driven network solutions. The BSNL expansion order is expected to reduce inventory and debt significantly. The company also noted progress in POCs with international operators and partnerships with NEC for 5G radio technology. Financial improvements are anticipated as collections from BSNL milestones are realized.

The document highlights both revenue growth and operational challenges, including significant losses and debt, alongside strategic advancements and international opportunities.