Tejas Networks , a prominent player in the telecommunications equipment sector, has reported a net loss of ₹307.17 crore for the second quarter of fiscal year 2026 (July-September). This marks the company's third consecutive quarter of losses, contrasting with the net profit of ₹275.18 crore recorded in the same period last year.

Financial Performance Overview

The company's financial results paint a challenging picture:

The decline in revenue, coupled with a negative EBITDA, underscores the challenges faced by Tejas Networks during this quarter.

Factors Contributing to the Loss

CFO Sumit Dhingra attributed the loss to several factors:

1. Lower revenue generation
2. Provisions for manufacturing process losses
3. Warranty-related expenses
4. Inventory obsolescence

Sequential Improvement and Order Book

Despite the year-over-year decline, Tejas Networks reported a 30% sequential increase in revenue compared to the previous quarter. The company ended Q2 with an order book of ₹1,204 crore, lower than the ₹4,845 crore reported in the same quarter last year.

Half-Year Performance

For the first half of FY2026:

• Total revenue declined by 90% to ₹463.80 crore
• The company reported a net loss of ₹501 crore

Stock Performance

The financial challenges have impacted Tejas Networks' stock performance:

• The stock has declined by 50% year-to-date
• It closed at ₹588.90 per share

Looking Ahead

While Tejas Networks faces headwinds, the sequential revenue growth and maintained order book suggest potential for recovery. However, the company will need to address the factors leading to its losses, particularly in manufacturing processes and inventory management, to return to profitability.

Investors and industry observers will be watching Tejas Networks' strategies to navigate these challenges and its efforts to capitalize on opportunities in the telecommunications equipment market.

Tejas Networks Limited , a prominent player in the telecom and data networking sector, has reported a significant financial setback for the six months ended September 30, 2025. The company's latest financial results reveal a consolidated loss after tax of Rs 501 crore, marking a stark contrast to the profit of Rs 352.66 crore recorded in the same period last year.

Financial Performance Overview

The company's financial performance for the period shows a notable decline across key metrics:

All figures in Rs crore, except for Basic Earnings Per Share

Quarterly Performance

For the quarter ended September 30, 2025, Tejas Networks reported:

• Loss: Rs 307.13 crore
• Revenue: Rs 261.82 crore

This quarterly performance represents a significant downturn compared to the profit of Rs 275.18 crore in the corresponding quarter of the previous year.

Factors Contributing to the Loss

1. Inventory Obsolescence: The cost of materials consumed included a provision for inventory obsolescence of Rs 145.43 crore for the quarter. This was primarily attributed to contract manufacturing process losses and design changes.

2. Warranty Expenses: Other expenses included a provision of Rs 44.44 crore for warranty expenses.

3. Revenue Decline: The company experienced a substantial decrease in revenue from operations, dropping from Rs 4,374.03 crore in the previous year to Rs 463.80 crore in the current period.

Balance Sheet Highlights

As of September 30, 2025:

• Total Assets: Rs 9,881.13 crore
• Total Equity: Rs 3,321.22 crore
• Current Liabilities: Rs 5,886.34 crore

Management Actions

The Board of Directors approved these unaudited financial results in a meeting held on October 17, 2025. The company has not provided specific commentary on the reasons for the significant decline in revenue or the measures being taken to address the financial challenges.

Market Implications

The substantial loss and revenue decline may raise concerns among investors about Tejas Networks' current market position and future prospects in the telecom and data networking sector. The significant provisions for inventory obsolescence and warranty expenses suggest potential operational challenges that the company may be facing.

Investors and market analysts will likely be looking for further clarification from the company's management on the factors behind this performance and the strategies in place to return to profitability.

As the telecom sector continues to evolve rapidly, particularly with the ongoing rollout of 5G technologies, Tejas Networks' ability to adapt to market demands and manage its operational costs will be crucial for its future performance.