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.

Tejas Networks shares were in focus following the company's Q3 earnings announcement, marking the fourth consecutive quarterly loss for the telecommunications equipment manufacturer. Despite the continued losses, the company showed sequential improvement in several key metrics.

Financial Performance Overview

The company's Q3 financial results presented a mixed picture with sequential improvements but significant year-on-year declines:

Operational Challenges and BSNL Impact

The company continues to face significant headwinds from delayed BSNL orders, which have substantially impacted its topline performance. While advance purchase orders have been issued, the final orders remain pending, creating uncertainty in revenue recognition. This delay, combined with overall weak sales, has been a primary factor in the company's revenue decline during the December quarter.

Balance Sheet Position

Tejas Networks maintained substantial inventory levels and saw improvements in working capital management:

The company indicated that its substantial inventory will be converted to finished goods and shipped in upcoming months, potentially supporting future revenue recognition.

Market Performance

Tejas Networks shares declined 5.20% in the previous trading session to ₹418.65 per share. The stock has experienced significant pressure over the past year, declining 57.60% during this period, reflecting investor concerns about the company's operational challenges and persistent losses.

Outlook Considerations

While the company continues to face quarterly losses, the sequential improvement in loss margins and EBITDA performance, along with better working capital management, suggests some operational stabilization. The resolution of BSNL order delays and conversion of existing inventory to sales will be critical factors for future performance recovery.