Tejas Networks (TEJASNET) Q2 25/26 earnings summary

Executive summary

• Q2 revenue reached INR 262 crore, up 30% sequentially from INR 202 crore in Q1, but profit after tax was a loss of INR 307 crore, impacted by INR 190 crore in inventory and warranty-related provisions.

• Order book at quarter-end stood at INR 1,200 crore, with 93% of revenue from India and 7% international; revenue was affected by a delay in a major BSNL 4G order.

• Major operational milestone: 97,500 BSNL cell towers running on 4G RAN products, making India the fifth country with a complete 4G/5G stack.

• Launched new 64T64R massive MIMO radio, completed first 5G LAN deployment under BSNL's captive non-public network, and expanded internationally with 400G deployments and 10G CPON in Europe.

• Unaudited consolidated results for Q2 FY26 were reviewed and approved by the Board on October 17, 2025; the group includes three subsidiaries.

Financial highlights

• EBIT for Q2 was -INR 394 crore, and PAT was -INR 307 crore, both heavily impacted by INR 145 crore in inventory write-downs and INR 44 crore in warranty provisions.

• Revenue from operations for H1FY26 was INR 464 crore, with a 30% quarter-on-quarter growth in Q2.

• Inventory at quarter-end: INR 2,383 crore; receivables: INR 4,026 crore; INR 700 crore collected during the quarter.

• Cash position at end of Q2 was INR 417 crore, with borrowings of INR 4,156 crore for working capital and capex.

• Net cash used in operating activities for H1 FY26 was ₹510.32 crore, with cash and cash equivalents at ₹56.01 crore as of September 30, 2025.

Outlook and guidance

• Management remains bullish on long-term prospects, citing strong business drivers, rapid technology transitions, and ongoing 4G/5G deployments.

• Investments continue in product development, sales expansion, and international partnerships, with a focus on 5G, 6G, and advanced optical products.

• No specific quarterly or annual guidance provided; focus remains on product development and sales expansion.