Tejas Networks shares experienced a sharp decline on Monday, falling 7.81% to hit a fresh 52-week low of ₹384.15 following the release of disappointing third-quarter results. The Tata Group telecom equipment manufacturer's stock performance reflected investor concerns over the company's financial deterioration.

Financial Performance Overview

The company's Q3 FY26 results revealed significant challenges, with Tejas Networks reporting a consolidated net loss that marked a dramatic shift from profitability in the previous year.

Revenue Decline and Operational Challenges

The most striking aspect of Tejas Networks' Q3 performance was the dramatic 88% year-on-year decline in consolidated revenue from operations, which fell to ₹306.79 crore from approximately ₹2,642 crore in the same quarter of the previous fiscal year. This substantial revenue contraction primarily stemmed from lower sales volumes and the deferment of purchase orders from state-owned Bharat Sanchar Nigam Limited (BSNL).

Sequential Improvement Despite Annual Decline

While the year-on-year comparison painted a challenging picture, Tejas Networks showed sequential improvement in its loss metrics. The Q3 FY26 loss of ₹196.55 crore represented a notable improvement from the previous quarter's loss of ₹307 crore, indicating some stabilization in the company's operational performance.

Market Response and Trading Activity

The market's reaction to the results was swift and decisive, with shares opening significantly lower and continuing to decline throughout the morning session. At 9:30 AM, Tejas Networks was trading 6.65% lower at ₹389.00 per share on the BSE, reflecting sustained selling pressure from investors concerned about the company's near-term prospects.

The stock's decline to a 52-week low underscores the challenges facing the domestic telecom gear manufacturing sector and highlights the impact of delayed government orders on company performance. The significant revenue decline and shift from profitability to substantial losses have clearly weighed on investor sentiment regarding the company's operational trajectory.

Tejas Networks reported challenging financial results for the third quarter of FY26, with the domestic telecom equipment maker posting a consolidated loss of ₹196.55 crore for the October-December period. This marks the company's second consecutive quarterly loss and represents a significant deterioration from the ₹165.67 crore profit recorded in the same quarter of the previous year.

Financial Performance Overview

The company's financial metrics for Q3 FY26 reflect the challenging operating environment:

The sharp 88% decline in revenue from operations was the primary driver of the weak performance, largely attributed to deferred purchase orders from state-owned Bharat Sanchar Nigam Limited (BSNL).

Revenue Mix and Market Presence

During the reported quarter, Tejas Networks' revenue composition showed heavy dependence on the domestic market. Approximately 85% of the company's revenue mix, excluding operating revenue, came from domestic operations, while international markets contributed the remaining 15%. The company serves as a key vendor for BSNL's 4G rollout under the CDOT-TCS consortium and has established itself as one of the largest suppliers of network routers in India.

Strategic Developments and Order Book

Despite the challenging financial performance, Tejas Networks made notable progress in securing new business opportunities:

• Secured multiple contracts for private 5G deployments across various sectors in India
• Won contracts for 5G applications in ports and mining operations
• Selected as 5G radio network supplier for Delhi-Mumbai railway corridor section
• Participation in Indian Railways' Kavach pilot project

The company maintained substantial inventory levels worth ₹2,363.00 crore as of December 2025, which management expects to convert into finished goods and ship in the coming months.

Government Incentives

Tejas Networks received ₹84.95 crore as production-linked incentive (PLI) for the March 2025 quarter during the reporting period. This brings the total incentives received under the PLI scheme to ₹397.00 crore, supporting the company's manufacturing operations and strategic positioning in the telecom equipment sector.

Financial Position

The company's balance sheet shows resilience despite operational challenges, with cash balances of ₹537.00 crore providing financial flexibility. The substantial inventory position of ₹2,363.00 crore represents both an asset and a working capital consideration as the company works to convert these holdings into revenue in subsequent quarters.