Tejas Networks reported a 99% year-on-year surge in standalone revenue for Q1FY27 to ₹401.95 crore, driven by international 5G radio shipments and domestic optical product deliveries. Despite the robust top-line growth, the company’s standalone net loss widened to ₹202.24 crore from ₹193.91 crore in Q1FY26. The deterioration in the bottom line was primarily due to high fixed costs, including finance expenses of ₹85.04 crore and depreciation charges of ₹94.35 crore, which outweighed the improvement in operating margins. The Board of Directors approved the unaudited financial results on July 27, 2026.

Financial Performance Overview

The Board of Directors approved the unaudited financial results on July 27, 2026. Consolidated revenue stood at ₹402.16 crore, compared to ₹201.98 crore in Q1FY26. While top-line growth was robust, the bottom line deteriorated due to high fixed costs and finance expenses. The pre-tax loss deepened to ₹270.81 crore from ₹297.35 crore year-ago, aided by a deferred tax benefit of ₹68.57 crore, resulting in a net loss after tax of ₹202.24 crore.

Operational Efficiency and Cost Structure

A key positive indicator was the significant narrowing of the operating loss. The EBITDA loss improved to ₹93.11 crore in Q1FY27 from ₹190.68 crore in Q1FY26, suggesting better gross margins or cost containment at the operating level. However, this improvement was eroded by high fixed costs. Finance costs totaled ₹85.04 crore, up from ₹74.69 crore year-ago. Depreciation and amortization expenses were ₹94.35 crore. Employee benefit expenses rose to ₹101.06 crore from ₹92.75 crore. Other expenses included a provision for warranty expenses amounting to ₹35.11 crore.

Strategic Wins and Balance Sheet Position

Arnob Roy, Managing Director and CEO, highlighted that revenues were driven by international 5G radio shipments and domestic optical products. The company registered its first commercial win for an end-to-end 5G network deployment in South America. Other key developments included supplying GPON OLTs to Tier-1 Indian telcos, selection as a vendor for a large power utility’s communication network modernization, and winning an expansion order for 100G+ Coherent DWDM equipment from a leading bandwidth wholesaler in Africa.

AVS Prasad, CFO, stated the company ended the quarter with an order book of ₹1,529 crore. On the balance sheet, gross debt stood at ₹4,866 crore, while cash and equivalents were ₹589 crore, resulting in a net debt of ₹4,277 crore.

What the Numbers Show

The divergence between top-line growth and bottom-line performance highlights the capital-intensive nature of Tejas Networks’ current business model. While revenue nearly doubled, indicating strong demand acceleration, the company continues to bleed cash at the net level. The narrowing EBITDA loss is a critical signal of operational leverage kicking in, but it is currently insufficient to cover the substantial interest burden and depreciation charges. The growing order book of ₹1,529 crore provides visibility into future revenue streams, but investors should monitor whether the improving operating margin can eventually offset the high finance costs to drive profitability.

Regulatory Compliance

The financial statements were prepared in accordance with Ind AS 34 "Interim Financial Reporting" and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Price Waterhouse Chartered Accountants LLP served as the statutory auditor, issuing a limited review report stating that nothing came to their attention to suggest material misstatement. The Audit Committee reviewed and recommended the results before final approval by the Board.

Tejas Networks Limited has approved the grant of 2,000 Restricted Stock Units (RSUs) to its employees, reinforcing its compensation structure for key personnel. The Board of Directors authorized the issuance during a meeting held on July 27, 2026, marking a specific allocation under the company’s existing equity incentive framework. This move aligns employee interests with long-term shareholder value creation through structured equity participation.

The grants were made under the Tejas Restricted Stock Unit Plan 2022. Each unit carries a face value of Rs. 10. The total number of units approved for this specific tranche is 2,000. These details were communicated to the National Stock Exchange of India Ltd and BSE Limited on the same day.

Grant Details

The following table outlines the specifics of the approved stock unit grant:

Regulatory Compliance

The company issued the disclosure in compliance with listing regulations. Anantha Murthy N, Company Secretary & Compliance Officer, signed the communication. The notice was dispatched to both major exchanges: the National Stock Exchange of India Ltd and BSE Limited.

What the Numbers Show

The approval of a relatively small batch of 2,000 units suggests a targeted approach to retention or reward for specific roles rather than a broad-based employee stock option scheme expansion. By utilizing the existing Tejas Restricted Stock Unit Plan 2022, the company avoids the need for fresh shareholder approval for a new plan, streamlining the administrative process while maintaining equity discipline.