1. At a Glance
Tejas Networks was hyped to stratospheric levels by Twitter finfluencers who called it “the next big telecom story.” Stock went from ₹600 to ₹1,460. Fast forward to July 2025, and it’s back at ₹601. That’s a 60% correction and a lot of burnt portfolios.
2. Introduction with Hook
Imagine you’re at a wedding where the DJ hypes every song as “the banger of the year,” and you dance till your knees give out. Then, the lights turn on, and you realize you’ve been grooving to remixes of old songs. That’s Tejas Networks for retail investors—hyped on Twitter like a Bollywood superstar, then reality hit: delayed BSNL orders, losses, debt ballooning, and your “multibagger” became a “half-bagger.”
3. Business Model (WTF Do They Even Do?)
Tejas makes networking equipment—optical, broadband, wireless—basically the plumbing of telecom networks. Sounds cool, but in reality:
- They sell to BSNL, Airtel, defence, utilities.
- 75+ countries use their kit, yet 60%+ revenue tied to BSNL orders.
- Backed by Tata (through Panatone Finvest) which gave finfluencers the magic word: “Tata = trust.”
So yes, they do “telecom gear” but sell it like they’re launching rockets.
4. Financials Overview
Here’s the scorecard from heaven to hell:
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % |
|---|---|---|---|
| Q1 FY25 | 1,563 | 77 | 15% |
| Q4 FY25 | 1,907 | -72 | 6% |
| Q1 FY26 | 202 | -194 | -67% |
Commentary: Margins tighter than Mumbai parking. Revenue fell 87% YoY. Losses bigger than your uncle’s crypto portfolio.
5. Valuation – The Comedy Show
- Current Price: ₹601
- P/E: 60.6 (on shrinking earnings!)
- EV/EBITDA: Sky-high (negative EBITDA recently)
Fair Value Range? ₹450–₹750.
If you think paying 60x earnings on negative cash flow is cool, you probably also buy Maggi at airport prices.
6. What’s Cooking – News, Triggers, Drama
- BSNL 4G order delays: Execution stuck like an Indian traffic jam.
- Debt tripled: ₹3,407 cr vs ₹50 cr in FY23.
- PLI incentives: ₹189 cr received—finfluencers screamed “bullish” while ignoring cash burn.
- Concall spice: Management admitted delays but promised recovery. Translation: “Trust us, bro.”
More plot twists than a daily soap.
7. Balance Sheet – Titanic or Tugboat?
| FY25 (₹ Cr) |
|---|
| Assets: 10,462 |
| Liabilities: 10,462 |
| Borrowings: 3,407 |
| Net Worth: 3,847 |
Debt is not Titanic-level, but with losses and cash crunch, the ship is wobbling.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | Investing CF (₹ Cr) | Financing CF (₹ Cr) |
|---|---|---|---|
| FY23 | -380 | -581 | 999 |
| FY24 | -2,036 | 430 | 1,713 |
| FY25 | -491 | -655 | 1,286 |
Cash flow looks like your freelancer friend—always busy, never paid.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 12.8% |
| ROCE | 15.5% |
| Debt/Equity | ~0.9 |
| PAT Margin | -24% |
| P/E | 60.6 |
ROCE was hot last year; now it’s cooling faster than tea in an AC room.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | PAT (₹ Cr) |
|---|---|---|
| FY23 | 922 | -36 |
| FY24 | 8,923 | 447 |
| FY25 | 7,562 | 175 |
PAT grew triple digits in FY24, but FY25 growth is like a WhatsApp forward—impressive on the surface, fake underneath.
11. Peer Comparison – Who’s the Drunk Guest?
| Company | CMP ₹ | P/E | ROE % |
|---|---|---|---|
| ITI | 303 | – | -16.1 |
| Sterlite Tech | 117 | – | -3.6 |
| Optiemus Infra | 575 | 79 | 11.6 |
| Tejas Networks | 601 | 60.6 | 12.8 |
Tejas is the least drunk guest at a wedding full of finance bros—but still tipsy.
12. Miscellaneous – Shareholding, Promoters
- Promoters: ~54% (steady)
- FIIs: Dumped from 11% to 6%
- Public: Rose to 35%—classic bag-holding
- No FPO, no merger drama, just retail hope and finfluencer memes.
13. EduInvesting Verdict™
Tejas Networks’ story is a case study in how social media hype inflates reality. A decent business, but BSNL dependency, execution delays, and ballooning debt make it a risky pit stop. If you rode the hype wave, congrats on your 60% haircut.
Lesson: Don’t take investing advice from a tweet with 1,000 likes.
Written by EduInvesting Team | 27 July 2025
Tags: Tejas Networks, Twitter Finfluencers, BSNL 4G Delays, Stock Crash, Tata Group, Telecom Equipment
