Tejas Networks Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing a significant shift from profitability to substantial losses. The telecom equipment manufacturer faced challenging market conditions that severely impacted its financial performance across key metrics.

Financial Performance Overview

The company's financial performance showed a dramatic deterioration compared to the previous year. Key metrics highlight the extent of the downturn across revenue, profitability, and operational efficiency.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, showed similar trends with the company recording substantial losses. Revenue from operations declined to ₹769.02 crore from ₹7,014.22 crore in the corresponding period of the previous year, representing an 89.04% decrease. The company reported a net loss of ₹697.97 crore compared to a profit of ₹512.67 crore in the nine months ended December 31, 2024.

Operational Expenses and Cost Management

Total expenses for Q3 FY26 stood at ₹616.50 crore compared to ₹2,444.75 crore in Q3 FY25. Notable expense components included:

• Cost of materials consumed: ₹153.84 crore (Q3 FY26) vs ₹2,015.28 crore (Q3 FY25)
• Employee benefit expenses: ₹111.14 crore vs ₹116.13 crore
• Finance costs: ₹71.65 crore vs ₹62.71 crore
• Depreciation and amortization: ₹104.45 crore vs ₹111.27 crore

The company benefited from a reversal of provision for inventory obsolescence amounting to ₹4.73 crore during Q3 FY26, compared to a charge of ₹44.24 crore in the corresponding quarter of the previous year.

Regulatory and Operational Updates

Tejas Networks recognized additional provisions following regulatory changes. The company recorded ₹9.85 crore towards past service costs on gratuity and compensated absences following the notification of new Labour Codes by the Ministry of Labour & Employment on November 21, 2025. Additionally, the company maintained warranty expense provisions of ₹24.35 crore for the quarter, determined based on potential fault rates and anticipated warranty claims.

Tax Benefits and Other Income

The company recorded a deferred tax benefit of ₹106.31 crore during Q3 FY26, compared to a deferred tax expense of ₹6.90 crore in Q3 FY25. Other income remained relatively stable at ₹7.58 crore compared to ₹13.76 crore in the previous year quarter. The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on January 09, 2026.

Tejas Networks Limited has secured an [ICRA]A1+ credit rating for its ₹500 crore Commercial Paper programme from ICRA Limited. The company informed stock exchanges about this development on January 09, 2026, in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

ICRA Limited assigned the rating through its letter dated January 08, 2026. The rating details are structured as follows:

The [ICRA]A1+ rating represents the highest category for short-term instruments, indicating very strong degree of safety regarding timely payment of financial obligations. This rating reflects the company's strong creditworthiness and ability to meet short-term debt obligations.

Rating Validity and Conditions

The rating comes with specific terms and conditions outlined by ICRA Limited. The rating agency has established clear guidelines for the programme's implementation and ongoing validity.

Key conditions include:

• The instrument must be issued within three months from January 08, 2026, or the rating will require revalidation
• Once issued, the rating remains valid throughout the programme's life with maximum maturity of twelve months
• Any changes in terms, conditions, or size of the instrument require ICRA's review
• The company must immediately inform ICRA about any defaults, delays, or significant developments affecting debt servicing capability

Regulatory Compliance and Disclosure

Tejas Networks has made this information available on its website at www.tejasnetworks.com as part of its transparency commitments. The company's communication to exchanges was signed by Anantha Murthy N, Company Secretary and Chief Compliance Officer.

ICRA Limited has emphasized that the rating should not be treated as a recommendation to buy, sell, or hold the rated instrument. The rating agency reserves the right to review and revise the rating based on new information or changing circumstances that could impact the rating assessment.

Additional Guidelines

In line with recent SEBI circular dated November 18, 2024, ICRA has encouraged the use of penny-drop verification service provided by banks. This measure aims to prevent payment failures when disbursing principal and interest to investors or debenture holders, ensuring successful remittance and avoiding transaction failures.