Tejas Networks has released its third quarter financial results, revealing challenging operational performance with both increased losses and significantly reduced revenue compared to the same period in the previous year.

Financial Performance Overview

The company's Q3 results show a deterioration across key financial metrics. The telecommunications equipment manufacturer reported a net loss that expanded compared to the previous year, while revenue experienced a substantial decline.

Revenue and Loss Analysis

The most significant development in the quarter was the dramatic revenue decline, with the company generating ₹305.00 crores compared to ₹2,642.00 crores in the corresponding quarter of the previous year. This represents a substantial decrease of 88.45% year-on-year, indicating major operational challenges or market conditions affecting the business.

Simultaneously, the company's net loss widened to ₹197.00 crores from ₹165.00 crores in the same quarter last year, representing a 19.39% increase in losses. The combination of reduced revenue and increased losses highlights the financial pressures facing the telecommunications equipment sector.

Market Impact

The financial results reflect the challenging environment in which Tejas Networks is operating, with both revenue generation and profitability metrics showing negative trends. The significant revenue contraction alongside the widened loss margin indicates operational difficulties that may require strategic attention and corrective measures.

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.