Tejas Networks (TEJASNET) Q2 24/25 earnings summary

Executive summary

• Achieved record quarterly revenue of INR 2,811 crores and profit after tax of INR 275 crores, marking the highest in company history, with a 7.1x year-over-year increase and strong order book at quarter-end.

• Major ramp-up in 4G/5G RAN systems, with over 38,000 sites deployed this quarter and new international wins in Americas and Africa.

• Completed merger/amalgamation with Saankhya Labs and Saankhya Strategic Electronics, expanding product capabilities and operational synergies.

• Order book at the end of Q2 stands at INR 7,845 crores, with major contributions from BSNL-related projects.

• Profit after tax for the six months was INR 350.85 crores, showing a significant turnaround from losses in the prior year.

Financial highlights

• Total revenue from operations for Q2FY25 was INR 2,811 crores, up from INR 396 crores in Q2FY24, with PLI incentives of INR 156.10 crores recognized for the quarter.

• EBIT margin improved to 16.3% in Q2FY25 from 10.7% in Q1FY25; PAT for Q2FY25 was INR 275 crores, compared to a loss of INR 13 crores in Q2FY24.

• Inventory at quarter-end was INR 3,411 crores, with receivables at INR 3,758 crores and cash position of INR 583 crores.

• Working capital increased by about INR 104 crores; borrowings at INR 2,768 crores.

• Earnings per share (basic) for the six months was INR 20.61, up from a loss per share of INR 2.30 in the prior year.

Outlook and guidance

• Strong pipeline with large opportunities in BSNL 4G expansion, Indian Railways collision avoidance, BharatNet Phase 2, and international modernization deals.

• Positive long-term outlook driven by network growth, digital transformation, AI data centers, and global broadband investments.

• Management expects continued compliance with PLI scheme conditions and further grant receipts.

• No specific revenue guidance provided, but management remains bullish on future growth drivers.

• The amalgamation is expected to enhance operational synergies and tax benefits.