Tejas Networks (TEJASNET) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was ₹201.98 crores, a sharp decline from ₹1,900 crores in Q4 FY25, mainly due to delayed purchase orders and shipment clearances, especially for BSNL's 4G network expansion, but up 33% year-over-year from ₹151.07 crores in Q1 FY25.

• Net loss for Q1 FY26 was ₹194 crores, higher than the previous quarter and compared to a net profit in Q1 FY25, with negative EBITDA of ₹232 crores and PBT of negative ₹297 crores.

• Order book at quarter-end stood at ₹1,241 crores, excluding a pending BSNL order of approximately ₹1,500–1,526 crores for over 18,000 4G sites.

• Revenue mix for Q1 was 81% India and 19% international; order book mix was 92% India and 8% international.

• Amalgamation of Saankhya Labs and Saankhya Strategic Electronics was completed, effective April 1, 2023.

Financial highlights

• Revenue for Q1 FY26 was ₹201.98 crores, down from ₹1,907 crores in Q4 FY25, but up from ₹151.07 crores in Q1 FY25.

• EBITDA was negative ₹232 crores, mainly due to lower revenue and high fixed costs.

• PAT for Q1 FY26 was negative ₹194 crores; finance costs contributed ₹75 crores to the loss.

• Inventory at quarter-end was ₹2,537 crores, with trade receivables at ₹4,453 crores and cash position at ₹545 crores.

• Borrowings increased to ₹3,990 crores, primarily for working capital and CapEx.

Outlook and guidance

• Management remains optimistic about growth, driven by global investments in fixed and mobile networking, data center connectivity, and broadband expansion.

• Expectation to execute the pending BSNL order within the current financial year.

• Expanded product portfolio and new partnerships are expected to drive growth in FY26.

• Receivables from BSNL projects are expected to reduce significantly over the next couple of quarters.