Tejas Networks shares fell 8% in Monday's trading session following the release of weak Q3FY26 financial results. The stock declined to a low of ₹381.55 from its previous close of ₹416.70, reflecting investor concerns over the company's underperforming quarterly numbers. With a market capitalization of ₹6,849.53 crores, the telecom equipment manufacturer faced significant selling pressure after announcing disappointing financial metrics.

Financial Performance Overview

The company's Q3FY26 results revealed substantial challenges in revenue generation and profitability. The financial performance showed mixed signals with severe year-over-year declines but some quarter-over-quarter improvements.

The earnings per share for the quarterly period stood at minus ₹11.09, compared to ₹9.44 in the previous year's quarter, highlighting the significant impact on shareholder returns.

Operational Efficiency Metrics

Despite the challenging quarterly results, Tejas Networks demonstrated solid underlying financial fundamentals. The company maintains a decent return on capital employed (ROCE) of 15.50% and return on equity (ROE) of 12.80%, indicating efficient use of capital and shareholders' funds.

The company has achieved strong historical performance with a median sales growth of 34.80% over the last 10 years, reflecting robust business expansion capabilities. Additionally, working capital efficiency has improved significantly, with requirements reducing from 251 days to 55.7 days, highlighting better operational management and cash flow discipline.

Revenue Segmentation and Order Book

The company's revenue composition during the reported quarter showed strong domestic focus, with approximately 85% of revenue mix coming from the domestic market and the remaining 15% contributed by international operations.

At the end of Q3FY26, the order book stood at ₹1,329 crores, reflecting a healthy increase from ₹1,204 crores in Q2FY26. The closing order book remained predominantly domestic-focused, with India contributing 92% of the total.

Company Profile and Market Position

Tejas Networks operates as a key vendor for BSNL's 4G rollout under the CDOT–TCS consortium and has positioned itself as one of the largest suppliers of network routers. The company specializes in designing, developing, and manufacturing high-performance wireline and wireless networking products for building telecom networks, serving service providers, utilities, defense, and government entities.

The company provides an end-to-end networking portfolio spanning fixed and wireless access, optical aggregation, metro core and backbone, packet transport, satellite communication, D2M broadcast, and network management solutions. Its technologies power 500+ networks across 75+ countries and are trusted by global industry leaders, including three of the world's largest mobile operators, Africa's top wholesale bandwidth providers, most of India's utility networks, and the world's largest rural broadband network.

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.