Tejas networks has received a significant financial boost from the government's Production Linked Incentive scheme, with the Ministry of Communications disbursing Rs 69.9658 crore to the telecom equipment manufacturer on February 18, 2026.

PLI Scheme Payment Details

The payment received by Tejas Networks represents the balance 15% of eligible incentive for FY 2024-25 under the Production Linked Incentive Scheme for Telecom and Networking Products. The funds were disbursed by the Ministry of Communications, Department of Telecommunications, New Delhi.

Regulatory Disclosure

The company informed both major stock exchanges about this development through a formal disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication was signed by Anantha Murthy N, Company Secretary and Compliance Officer, ensuring transparency with stakeholders.

Production Linked Incentive Scheme Impact

The PLI scheme for telecom and networking products is designed to boost domestic manufacturing capabilities in the telecommunications sector. This payment to Tejas Networks demonstrates the government's commitment to supporting indigenous telecom equipment manufacturers and reducing import dependence in critical technology sectors.

The receipt of this substantial incentive amount strengthens Tejas Networks' financial position and validates its participation in the government's strategic initiative to develop a robust domestic telecom manufacturing ecosystem.

Tejas Networks reported mixed Q3FY26 results with revenue growth offset by significant losses, as the company navigates a transition phase while awaiting major order executions and pursuing international expansion opportunities.

Financial Performance Overview

The company delivered revenue of ₹307.00 crores in Q3FY26, marking a 17% quarter-on-quarter increase from ₹262.00 crores in Q2FY26. However, profitability remained under pressure with a net loss of ₹197.00 crores for the quarter.

The revenue composition showed 85% contribution from Indian customers and 15% from international markets, while the order book remained predominantly India-focused at 92%.

Business Segment Performance

The quarter's revenue growth was primarily driven by wireline product sales to Indian private telecom operators and international customers. The company secured additional packages for BharatNet, becoming one of the largest suppliers of IP/MPLS routers by package count. Expansion orders were received from leading private telcos in India for both WDM and GPON equipment.

Significant international wins included a WDM backbone network order from a broadband ISP in Africa and a network transformation project for MPLS-TP products from a power sector company in Southeast Asia. The company also achieved its first win in sovereign data center networking applications in India for switching products.

Wireless Business Development

While wireless revenue remained limited in Q3FY26, the company reported increased international engagements for 4G and 5G RAN equipment. Multiple proof-of-concepts have progressed to commercial negotiation stages across various markets. The company was selected as a 5G RAN supplier for a section of the Delhi-Mumbai railway corridor pilot project under the Kavach initiative.

Operational and Strategic Updates

The company received ₹85.00 crores as PLI incentives for Q4FY25, bringing cumulative FY25 PLI to ₹397.00 crores. Innovation efforts continued with 26 patents filed in Q3FY26, taking the total to 613 global patents with 370 granted. The company's converged broadband product won the Excellence Award for most innovative product at a Dubai conference.

Inventory levels remained elevated at ₹2,363.00 crores, primarily due to procurement for the anticipated BSNL 4G expansion order. Trade receivables decreased to ₹3,284.00 crores from ₹4,026.00 crores in Q2FY26, while net debt improved to ₹3,349.00 crores from ₹3,738.00 crores.

Market Outlook and Challenges

The delay in BSNL's 4G expansion order continues to impact financial performance, with management indicating the project will likely execute in the next financial year due to operational readiness requirements at BSNL. However, the company maintains a positive long-term outlook driven by technology transitions, AI-driven data growth, and expanding 4G/5G networks in emerging markets.

International partnerships with NEC and Rakuten are facilitating wireless product expansion globally, while the company sees increasing adoption of wireline products among Indian private telcos. The transition from government-focused to private and international customer base aims to improve working capital cycles and margins.