What Led Tejas Networks to Report a Loss of Rs 194 Crore in Q1?
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Synopsis
Tejas Networks faces a significant financial setback, revealing a net loss of Rs 194 crore in Q1 FY26. Despite this downturn, the company remains optimistic about future growth, citing a strong order book and strategic partnerships. Discover how external challenges impacted their performance and what lies ahead for this networking giant.
Key Takeaways
- Tejas Networks faces a net loss of Rs 194 crore in Q1 FY26.
- Revenue dropped significantly to Rs 202 crore.
- Operating performance saw an EBITDA loss of Rs 135 crore.
- Strategic partnerships are expected to enhance growth.
- Order book remains strong at Rs 1,241 crore.
New Delhi, July 14 (NationPress) - The networking and broadband equipment manufacturer Tejas Networks announced a significant downturn in its financial health for the first quarter of FY26, reporting a consolidated net loss of Rs 194 crore.
This represents a dramatic decline from a net profit of Rs 77 crore recorded during the same quarter last year, as noted in their stock exchange filings.
The company's revenue also experienced a notable decline, plummeting to Rs 202 crore in Q1 FY26 from Rs 1,563 crore in Q1 FY25.
Operating results were heavily influenced by this downturn, with an EBITDA loss of Rs 135 crore compared to a positive EBITDA of Rs 231 crore the previous year.
Tejas Networks attributed the disappointing results to escalating costs, project delivery delays, and pressure on profit margins.
Numerous substantial orders, both from domestic and international markets, were postponed to the second quarter, which adversely affected profitability in Q1.
Nevertheless, the company maintains a positive outlook for future growth.
The order book remained robust at Rs 1,241 crore at the conclusion of Q1, showcasing a 22% quarter-on-quarter (QoQ) increase.
Key initiatives such as India's BharatNet project and the 5G rollout are sustaining demand, with new orders anticipated from Africa and Southeast Asia to further invigorate progress.
Arnob Roy, COO of Tejas Networks, stated, "In Q1 FY26, we established strategic collaborations with Rakuten Symphony for O-RAN solutions, along with Intel and mobile device manufacturers for our D2M chipsets."
"These alliances will broaden our global footprint. We also acquired new orders for routers for BharatNet Phase 3 and optical equipment from private Indian operators," Roy explained.
He noted that the revenue shortfall was primarily due to delays in receiving purchase orders, including the BSNL expansion order.
Sumit Dhingra, the company's CFO, remarked, "Our Q1 revenue was Rs 202 crore, and we posted a net loss of Rs 194 crore, mainly attributed to reduced sales."
"However, with the BSNL 4G expansion order covering 18,685 sites now awarded to TCS, we anticipate a forthcoming purchase order valued at Rs 1,526 crore for RAN equipment," Dhingra added.
Point of View
Tejas Networks' current financial struggles highlight the challenges faced by companies in the fast-evolving tech landscape. While their recent losses are concerning, the company's proactive measures and strategic partnerships signal a potential turnaround. It is essential to monitor their next moves closely as they navigate this turbulent period.
NationPress
14/07/2025
Frequently Asked Questions
What was Tejas Networks' net loss in Q1 FY26?
Tejas Networks reported a net loss of Rs 194 crore in the first quarter of FY26.
How does the Q1 FY26 performance compare to the previous year?
In Q1 FY25, Tejas Networks posted a net profit of Rs 77 crore, indicating a significant decline in performance year-over-year.
What factors contributed to the company's loss?
Factors include rising costs, delays in project deliveries, and pressure on profit margins.
What is the company's outlook moving forward?
Despite the loss, Tejas Networks is optimistic about future growth and has a strong order book.
What significant partnerships has Tejas Networks formed recently?
Tejas Networks has formed strategic partnerships with Rakuten Symphony, Intel, and mobile manufacturers for various solutions.
