Tejas Networks Ltd Q2 FY26 FY25 – When Tata’s Tech Baby Burned ₹307 Crores But Still Talked 5G Like a Bollywood Hero
1. At a Glance
Picture this: a Tata Group-backed telecom gear maker that once flexed 261% revenue growth now ends Q2 FY26 with a ₹307 crore net loss, a ₹262 crore topline, and a market cap of ₹10,430 crore. The stock sits at ₹590—down over 50% in a year—looking like a post-party hangover after that BSNL 4G rollout rave. Debt has ballooned from ₹50 crore in FY23 to a jaw-dropping ₹4,296 crore in FY25, making “wireless” seem ironic because they’re tied to loans now. OPM has flipped from +14% last year to –112% this quarter—like going from gym fit to gulab jamun in one quarter. But wait—this is still a Tata play. So investors are holding like parents defending a dropout kid saying, “Beta R&D mein hai.”
2. Introduction – From Fiber Dreams to Firefighting
Once upon a time (a.k.a FY24), Tejas Networks looked like India’s golden telecom prodigy—the desi Huawei, the R&D darling, the chosen one for Atmanirbhar Bharat’s 5G ambitions. Then came FY26. BSNL’s massive 100,000-site 4G rollout was their Avengers moment, but after the climax, we got the post-credit scene nobody wanted: losses, inventory write-downs, and management exits.
From shipping over 9 lakh devices across 75 countries to reporting an inventory write-down of ₹145 crore, Tejas’ story feels like that of a startup that scaled too fast, married debt, and forgot to read the fine print on margins. CEO Anand Athreya quit mid-2025; COO Arnob Roy had to step in—probably wondering if the corner office comes with free paracetamol.
Still, Tejas has the Tata surname, and that alone keeps it on investor watchlists—because in India, “Tata” is the emotional equivalent of a credit rating upgrade. But behind the brand, the numbers tell a different story.
3. Business Model – WTF Do They Even Do?
So, what does Tejas actually do apart from burning cash and bandwidth?
Tejas Networks designs and manufactures networking equipment—basically the pipes and brains that move data between telecom towers, fiber lines, satellites, and your endlessly buffering OTT platforms. Their portfolio includes:
Optical Transmission Gear: The DWDM/OTN tech that lets data travel like express trains on fiber highways.
Wireless 4G/5G Radios: Built on 3GPP and O-RAN standards (translation: desi-made towers for the BSNL project).
Broadband (GPON/XGS-PON): The stuff that keeps BharatNet from becoming “Bharat-Notworking.”
Routers and Switches (Ethernet, MPLS): For data centers, utilities, and defense networks.
Essentially, Tejas is India’s answer to Ericsson and Nokia—minus the profits, plus the patriotism. They even make chips now, thanks to the Saankhya Labs acquisition, positioning themselves in satellite IoT and Direct-to-Mobile (D2M) technology.
If telecom infrastructure were a cricket match, Tejas is the middle-order batsman hitting a few brilliant shots before getting bowled by debt.
4. Financials Overview – Where Numbers Go to Cry
Source table
Metric
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue
₹262 Cr
₹2,811 Cr
₹202 Cr
-90.7%
+29.7%
EBITDA
-₹294 Cr
₹535 Cr
-₹136 Cr
-155%
-116%
PAT
-₹307 Cr
₹275 Cr
-₹194 Cr
-212%
-58%
EPS (₹)
-17.36
16.07
-10.98
-208%
-58%
Commentary: Revenue collapsed like a telecom tower in a thunderstorm—down 91% YoY. PAT turned from +₹275 Cr to -₹307 Cr. That’s not a miss; that’s a vanishing act. The inventory write-down alone could buy an entire smallcap IT firm. EPS is now deep in negative territory, so the P/E is basically “P/Existential Crisis.”
5. Valuation Discussion – Theoretical Fair Value Range
Let’s play valuation Sudoku.
P/E Method: Annualized EPS = -₹17.36 × 4 = -₹69.44 → P/E not meaningful. (We’ll move on before our calculator files for depression.)
EV/EBITDA Method: EV = ₹14,665 Cr, EBITDA (FY25) = ₹1,258 Cr → EV/EBITDA = 11.6x during good times. But current TTM EBITDA = ₹64 Cr → now 229x. Adjusted Fair Value Range = ₹400–₹700 per share (assuming normalization post FY26 when BSNL payments settle).
DCF (Desi Common Sense Formula): Assume FCF recovery of ₹600 Cr/year post FY27, growth 8%, discount 12%. Implied enterprise value ≈ ₹11,000–₹12,000 Cr → Fair value range ₹500–₹650.
Disclaimer: This fair value range is for educational purposes only and not investment advice. Even Rakesh Jhunjhunwala’s ghost would’ve double-checked this one.
6. What’s Cooking – News, Triggers, Drama
This quarter was a full Ekta Kapoor serial:
CEO Resignation: Anand Athreya exited in June 2025. COO Arnob Roy promoted as interim CEO. The board probably had “Kyunki CEO bhi kabhi engineer tha” playing in the background.
NEC Collaboration: Signed a USD 60 Mn deal with NEC Japan for 5G co-development. Japan tech + Indian jugaad = either genius or chaos.
PLI Cashbacks: Received ₹312 Cr in government incentives for FY24–H1 FY25.
