Is Tejas Networks Facing Financial Turmoil with Rs 196.55 Crore Loss in Q3?
Synopsis
Tejas Networks reports a staggering loss of Rs 196.55 crore for Q3 FY26, its second consecutive quarterly loss. The company faces challenges due to order delays from BSNL, impacting its revenue drastically. Despite this, Tejas has secured wins in private 5G deployments, hinting at potential recovery.
Key Takeaways
Consolidated loss of Rs 196.55 crore for Q3 FY26.
Revenue dropped by nearly 88% to Rs 306.79 crore.
Delay in BSNL orders impacted financial results.
85% of revenue from domestic market.
Secured contracts for private 5G deployments.
Mumbai, Jan 10 (NationPress) The Indian telecom equipment manufacturer Tejas Networks has disclosed a consolidated loss of Rs 196.55 crore for the quarter spanning October to December (Q3 FY26). This represents the second consecutive quarterly loss, primarily due to sluggish sales and a postponement of orders from state-run BSNL, as stated in its stock exchange report.
In the same quarter last fiscal year, the company had reported a profit of Rs 165.67 crore.
Consolidated operational revenue plummeted by nearly 88 percent, totaling Rs 306.79 crore in the December quarter, in stark contrast to approximately Rs 2,642 crore a year prior, as per the filing.
Tejas Networks is a vital supplier for BSNL's 4G network deployment as part of the C-DOT–TCS consortium, claiming to be the leading provider of network routers.
However, during this quarter, a significant purchase order valued at Rs 1,526 crore from BSNL for 18,000 sites was deferred, negatively impacting the company's revenue.
For the reported quarter, around 85 percent of the company's revenue mix, excluding operational income, was derived from the domestic market, while the remaining 15 percent came from international markets.
As of the December 2025 quarter, the company is holding inventory worth Rs 2,363 crore, which is anticipated to be transformed into finished products and shipped in the upcoming months.
For the nine-month period concluding on December 31, Tejas Networks recorded a total loss of Rs 697.55 crore.
During this timeframe, operational revenue decreased by 89 percent, amounting to Rs 793.69 crore.
The company reported a cash reserve of Rs 537 crore in the December 2025 quarter, according to its filing.
Despite these unfavorable financial results, Tejas Networks announced it has achieved several successes in private 5G deployments across India, particularly for applications in ports and mines.
Additionally, the company has been chosen as the 5G radio network supplier for a segment of the Delhi–Mumbai railway corridor under an Indian Railways initiative for the Kavach safety system.
During the quarter, Tejas Networks also received Rs 84.95 crore in incentives through the production-linked incentive scheme for the March 2025 quarter, bringing the total incentives received under the scheme to Rs 397 crore.
Point of View
It is crucial to recognize the significant financial challenges Tejas Networks faces. With a substantial loss reported for Q3 FY26, the company's reliance on government contracts and its ability to pivot toward emerging technologies like 5G will be pivotal in determining its future viability in the competitive telecom sector.
NationPress
10 May 2026
Frequently Asked Questions
What caused Tejas Networks' loss in Q3 FY26?
The loss was primarily due to weak sales and a delay in orders from BSNL, which significantly impacted revenue.
How much did Tejas Networks' revenue decline?
The company's revenue from operations fell by nearly 88 percent to Rs 306.79 crore in the December quarter.
What percentage of revenue came from the domestic market?
About 85 percent of the revenue mix, excluding operating revenue, came from the domestic market.
What future prospects does Tejas Networks have?
Despite recent losses, Tejas has secured multiple contracts for private 5G deployments in India, indicating potential growth.
What incentives has Tejas Networks received?
Tejas Networks received Rs 84.95 crore as incentives under the production-linked incentive scheme, totaling Rs 397 crore.
