Tejas Networks (TEJASNET) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 net revenue reached INR 2,642 crores, up 4.7x year-over-year, with PAT at INR 166 crores and an order book of INR 2,681 crores.

• Major achievements include completion of RAN supplies for over 86,000 BSNL 4G/5G sites, a three-year Vodafone Idea contract, and network modernization wins in the US and Asia.

• Amalgamation of Saankhya Labs and Saankhya Strategic Electronics with the parent, effective April 1, 2023, with share allotments and a capital reserve created.

• Expanded manufacturing and R&D facilities in Bangalore, and strengthened leadership with Sanjay Malik as EVP, Chief Strategy and Business Officer.

• The group includes subsidiaries in Singapore, Nigeria, and the USA.

Financial highlights

• Q3 net revenue: INR 2,642 crores (including INR 144.94 crores PLI incentive), EBIT: INR 260 crores, PAT: INR 166 crores, and consolidated net profit after tax of INR 168.16 crores.

• Inventory at INR 3,127 crores, trade receivables at INR 4,730 crores, and collections of INR 2,000 crores in the quarter.

• Borrowings at INR 3,157 crores, cash at INR 643 crores, mainly for working capital.

• Earnings per share (basic) for Q3 FY25 was ₹9.44 (consolidated) and ₹9.42 (standalone).

• Total comprehensive income for the nine months ended December 31, 2024, was ₹519.01 crore (consolidated).

Outlook and guidance

• Anticipates conversion of large opportunities (BSNL 4G/5G expansion, BharatNet Phase 3, Indian Railways, private 5G, and international deals) in Q4 and Q1 FY2026, with execution expected in FY2026.

• Targeting expansion in Indian Railways' Kavach system, private 5G for enterprises, and international tier-1 operator opportunities.

• Continued investment in R&D and sales expansion, especially in North America and Latin America.