TEJASNETNSEQ2 FY26October 28, 2025

Tejas Networks Limited

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Management on call

Arnob Roy

EXECUTIVE DIRECTOR AND CHIEF OPERATING OFFICER, TEJAS NETWORKS

Sumit Dhingra

CHIEF FINANCIAL OFFICER, TEJAS NETWORKS

Kumar N. Sivarajan

CHIEF TECHNOLOGY OFFICER, TEJAS NETWORKS

Sanjay Malik

CHIEF STRATEGY AND BUSINESS OFFICER, TEJAS NETWORKS

Pranav Kshatriya

EMKAY GLOBAL FINANCIAL SERVICES LIMITED

Key numbers — 40 extracted

Rs. 262 crore

d welcome to Tejas Networks' Quarter 2 Earnings Call. I am on the first slide. Our Q2 revenue was Rs. 262 crores as opposed to Rs. 202 crores in Q1. Profit after tax was a loss of Rs. 307 crores as opposed to

Rs. 202 crore

Quarter 2 Earnings Call. I am on the first slide. Our Q2 revenue was Rs. 262 crores as opposed to Rs. 202 crores in Q1. Profit after tax was a loss of Rs. 307 crores as opposed to a loss of Rs. 194 crores in Q

Rs. 307 crore

Q2 revenue was Rs. 262 crores as opposed to Rs. 202 crores in Q1. Profit after tax was a loss of Rs. 307 crores as opposed to a loss of Rs. 194 crores in Q1. And this loss included inventory and warranty-rela

Rs. 194 crore

ed to Rs. 202 crores in Q1. Profit after tax was a loss of Rs. 307 crores as opposed to a loss of Rs. 194 crores in Q1. And this loss included inventory and warranty-related provisions of Rs. 190 crores, and w

Rs. 190 crore

loss of Rs. 194 crores in Q1. And this loss included inventory and warranty-related provisions of Rs. 190 crores, and we will be discussing the details later on. We ended the quarter with an order book of Rs.

Rs. 1,200 crore

rores, and we will be discussing the details later on. We ended the quarter with an order book of Rs. 1,200 crores as opposed to Rs. 1,241 crores in Q1. Our revenue mix for the quarter was again 79% of our rev

Rs. 1,241 crore

g the details later on. We ended the quarter with an order book of Rs. 1,200 crores as opposed to Rs. 1,241 crores in Q1. Our revenue mix for the quarter was again 79% of our revenues were in India and 21% inter

79%

Rs. 1,200 crores as opposed to Rs. 1,241 crores in Q1. Our revenue mix for the quarter was again 79% of our revenues were in India and 21% international. Our order book mix was largely India, 93%, a

21%

241 crores in Q1. Our revenue mix for the quarter was again 79% of our revenues were in India and 21% international. Our order book mix was largely India, 93%, and 7% international. So, in summary,

93%

in 79% of our revenues were in India and 21% international. Our order book mix was largely India, 93%, and 7% international. So, in summary, in Q2, one of the reasons for the smaller revenue and bo

ur revenues were in India and 21% international. Our order book mix was largely India, 93%, and 7% international. So, in summary, in Q2, one of the reasons for the smaller revenue and bookings was

Rs. 1,500 crore

reasons for the smaller revenue and bookings was the delay in the receipt of BSNL 4G add-on PO of Rs. 1,500 crores for 18k sites. As we had mentioned earlier, TCS has received the APO, but it has not yet got con

Guidance — 20 items

Arnob Roy

opening

“190 crores, and we will be discussing the details later on.”

Arnob Roy

opening

“And as soon as they are ready to take in the additional equipment for deployment, that's the time when we expect the POs to be issued.”

A few highlights for the quarter

opening

“And we expect to convert this into a successful commercial order for this network.”

A few highlights for the quarter

opening

“He has held leadership positions in Applied Materials, SanDisk, Micron Electronics, etc., and we hope to leverage his extensive industry experience in guiding us in our product strategy, in our semiconductor strategy, as well as in evolving our supply chain strategy.”

Our financial update for the quarter is as follows

opening

“It has come off slightly compared to the previous quarter, and it will be converted to finished goods and shipped in the upcoming months.”

Our financial update for the quarter is as follows

opening

“We expect to get a significant amount of these collections through during this year.”

Arnob Roy

“And we expect that as soon as BSNL is ready to expand their network, these purchase orders will be issued and we are expecting them in this financial year.”

Sanjay Malik

“So, with that, we are expecting some closures with the international operators also going forward.”

Sumit Dhingra

“These typically would be on account of the large manufacturing that we undertook over the last few quarters, and I think is something that we don't expect to have recurrence of that in large numbers.”

Sumit Dhingra

“But other than that, I think the ongoing efforts on ensuring that we reflect the true picture of inventory is something that as a policy would continue going forward.”

Risks & concerns — 6 flagged

So, I want to understand from your risk assessment, what are the top two risks you see, maybe, let's say next one year, which may hinder your plans?

— Gaurav

I think the risk would be if you are not able to execute on our plans of our product development.

— Arnob Roy

And, if our products don't succeed in the opportunities in the trials, and the opportunities that we have in hand, I would say that is the only risk that we see of not performing.

— Arnob Roy

So, as long as we beat our product roadmap, and our products perform well in customer networks, in trials and in POCs, I think that is where the risk mitigation really comes in.

— Arnob Roy

Beyond that, I think it will be difficult to give any specifics.

— Sumit Dhingra

So, I think maybe difficult to give a specific number of market share as of now, but definitely we will be growing in the international area.

— Sanjay Malik

Q&A — 6 exchanges

Hello. My question really is the fact that now I think we are pretty much done with the BSNL order, although the add-on is likely and maybe 5G upgrade is likely. But in the absence of the business, do you have an estimate of what is our run rate revenue required for the breakeven given that we have larger R&D investments, etc.?

Arnob Roy

As of now, we don't have the data to discuss the breakeven revenue number. Okay, the second question is, are we likely to get these orders in current financial year or mostly likely to spill over? I think, as you know, we have taken a lot of proactive action in building the inventory and in the components as well as some of the finished goods. And we know that the TCS has received the advance purchase orders. And we expect that as soon as BSNL is ready to expand their network, these purchase orders will be issued and we are expecting them in this financial year. All of these may not get shippe

Just wanted to ask, is Tejas capable enough or does it plan to make itself relevant in the whole process of value chain of data center building? And on the lines of the same question, TCS announced a $4 billion to $5 billion of investment in data centers. So, can we assume that Tejas is going to get some of the revenue slice from there?

Arnob Roy

So, I think first of all, let me explain where are we, which part of the data center business is connected to our products. So, we don't build data centers. We don't build the equipment that goes inside the data center, whether it's the AI data centers consisting of GPUs or high-end servers and all. But what we do is these data centers that are distributed across nations, globally, and they require a very high bandwidth connectivity between data centers and also from users to those data centers. And what we are also seeing is that the AI data centers, given the amount of consumption of power a

Actually, as you know, we don't give guidance on our quarter to quarter or yearly performance in terms of actual numbers. What we try to do is give you a general outlook of the business environment, the drivers for our business and our own opportunities, our own investments in these areas to really leverage the opportunities that we see. So, from that point of view, yes, Q2 has been soft, as you said. But the business, the macro business environment remains strong and continues to grow. And on the basis of that, even today, we continue to invest very significantly in R&D and products and also

Management

Good evening, everyone. So, my question is about our future plans. So, as you know, we have been making negative profit last couple of quarters. And I heard you talking about the future plans, the POs and all the ties and businesses, very optimistic plans. So, I want to understand from your risk assessment, what are the top two risks you see, maybe, let's say next one year, which may hinder your plans? And what is the mitigation plan you have for those risks?

Arnob Roy

I think the risk would be if you are not able to execute on our plans of our product development. And, if our products don't succeed in the opportunities in the trials, and the opportunities that we have in hand, I would say that is the only risk that we see of not performing. The opportunities are clearly there. And it is for us to execute with our expansion plans in the international markets as well as our product development. So, as long as we beat our product roadmap, and our products perform well in customer networks, in trials and in POCs, I think that is where the risk mitigation really

Good evening, sir. My question is that, what margins we play? This write-offs and all the things which are coming after the execution, we are in profitability or loss?

Sumit Dhingra

Sir, you're talking in context of this quarter? Or is that a general question? I am not able to follow. Every order, in every order when we execute, what margins are coming, and after all costing, and on net profit, I am asking over the net profit, the last three years, you are having good profits, but in last three quarters, you're right down around Rs. 600 crores-Rs. 700 crores. So, you are talking about the inventory, after inventory countdown, that's why I am asking this question. So, for all the projects that we bid for they are with an underlying assumption of reasonable profitability, I

So, once again, thanks everyone for participating in the call, and I look forward to interacting with you all, at the end of Quarter 3 as well. Thank you very much.

Management

Speaking time

Arnob Roy

Amit

Moderator

Sumit Dhingra

Hiren Desai

Vidhan Kumar

Sanjay Malik

Gaurav

Pranav Kshatriya

A few highlights for the quarter

Opening remarks

Pranav Kshatriya

Good evening. I would like to welcome the Management and thank them for this opportunity. We have with us today Mr. Arnob Roy – Executive Director and Chief Operating Officer; Mr. Sumit Dhingra – Chief Financial Officer; Dr. Kumar N. Sivarajan – Chief Technology Officer, and Mr. Sanjay Malik – Chief Strategy and Business Officer. I shall now hand over the call to Management for the opening remarks. Over to you, sir. Thank you.

Arnob Roy

Hello. Good evening, everyone, and welcome to Tejas Networks' Quarter 2 Earnings Call. I am on the first slide. Our Q2 revenue was Rs. 262 crores as opposed to Rs. 202 crores in Q1. Profit after tax was a loss of Rs. 307 crores as opposed to a loss of Rs. 194 crores in Q1. And this loss included inventory and warranty-related provisions of Rs. 190 crores, and we will be discussing the details later on. We ended the quarter with an order book of Rs. 1,200 crores as opposed to Rs. 1,241 crores in Q1. Our revenue mix for the quarter was again 79% of our revenues were in India and 21% international. Our order book mix was largely India, 93%, and 7% international. So, in summary, in Q2, one of the reasons for the smaller revenue and bookings was the delay in the receipt of BSNL 4G add-on PO of Rs. 1,500 crores for 18k sites. As we had mentioned earlier, TCS has received the APO, but it has not yet got converted into PO. And we are waiting for BSNL, who has just launched this service across

A few highlights for the quarter

For our wireless business, the big event was the inauguration of BSNL's nationwide 4G network by the Honorable Prime Minister. And as of today, 97,500 cell towers are running on our 4G RAN products. So this has been a very significant achievement. In launching this network, we have become the fifth country in the world to have a complete 4G/5G technology stack. This network is carrying four petabytes of data traffic daily and has 26 million active subscribers. So it is carrying network traffic to scale and has been performing extremely well in all metrics, in all comparisons that you can think of. We recently had the Indian Mobile Congress event. And during that event, we launched our new 64T64R massive MIMO radio. And this was launched by the Honorable MoC. We also successfully completed our first 5G RAN deployment under BSNL's captive non-public network program in a coal mine in MP. We also successfully completed 4G/5G RAN POC in a mobile operator’s network in South Asia. And we expe

Our financial update for the quarter is as follows

For the Quarter 2, we did a revenue of Rs. 262 crores compared to Rs. 202 crores in the previous quarter, which implies a quarter-on-quarter growth of about 30%. EBIT for the quarter was negative Rs. 394 crores compared to negative Rs. 232 crores in the previous quarter, and PBT of negative Rs. 473 crores compared to negative Rs. 297 crores in the previous quarter. I think some of the profitability figures are impacted with the provisions and charges that we have incurred during the quarter, as Arnob briefly mentioned in the initial section. Adjusting for those expenses, EBIT would have been negative Rs. 205 crores and PBT would have been negative Rs. 284 crores. These expenses that we are talking about primarily consist of two buckets. One is provisions for inventory obsolescence and write-down of about Rs. 145 crores, which is mainly on account of contract manufacturing process losses, design changes, and other related matters. And warranty expenses or warranty provisions amounting t

Arnob Roy

So, to conclude, our long-term outlook is positive. We are very bullish about the Company's future business. The driver for our business still remains strong. And there are rapid technology transitions that are happening, which give us the opportunity to enter new customer accounts and new territories as we evolve our product portfolio in line with those changes. So, from a trend perspective, the data consumption, both fixed and mobile, continue to grow rapidly. New AI applications are driving traffic growth across the network. 5G deployment is predicted to continue till 2030, when 6G standardization comes in. And 4G deployments are still expanding in emerging markets. So, both of these give us a good opportunity to grow our wireless business in international markets. There are massive investments happening in AI data centers, driving huge connectivity requirements, which will drive our networking business. 400G WDM is growing rapidly, and there is early adoption of 800G WDM, which is

Kumar Sivarajan

Thank you, Arnob. So, we have completed deployment of the 4G network and BSNL. Arnob talked about that, and those radios are upgradable to 5G in whatever bands they are. However, since that, over the last two years, we have been working on a brand new portfolio of both the radios and the baseband unit that goes at the bottom of the tower for 5G. So, we have developed radios in the entire frequency band, going from 450 megahertz at the low end to 4.9 gigahertz at the highest end. The radios in 3.5 gigahertz and 4.9 gigahertz are massive MIMO radios. We exhibited some of them at IMC, and the massive MIMO radio in particular that we have at 3.5 gigahertz, which is also the India band for 5G, is 64TR, 64 transmitter, 64 receivers, has 320 watts of power, and matches the best in industry that is available today. In addition, in order to be able to address the global market for 5G, we are developing variations for every continent that we are engaged in. So, for example, for 700 megahertz, we

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