TEJASNETNSEQ4 FY26April 21, 2026

Tejas Networks Limited

8,020words
109turns
10analyst exchanges
5executives
Management on call
Arnob Roy
MANAGING DIRECTOR & CHIEF
Sumit Dhingra
CHIEF FINANCIAL OFFICER – TEJAS NETWORKS LIMITED
Kumar N. Sivarajan
CHIEF TECHNOLOGY OFFICER - TEJAS NETWORKS LIMITED
Sanjay Malik
CHIEF BUSINESS AND STRATEGY
Mohit Mishra
ICICI SECURITIES
Key numbers — 39 extracted
INR333 crore
So, let me begin by walking you through the Q4 financial numbers. So, in Q4, we had a revenue of INR333 crores as opposed to INR307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We ha
INR307 crore
you through the Q4 financial numbers. So, in Q4, we had a revenue of INR333 crores as opposed to INR307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 cro
INR1,103 crore
evenue of INR333 crores as opposed to INR307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 crores in Q4 as opposed to INR197 crores of PAT loss in Q3. And
INR211 crore
R307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 crores in Q4 as opposed to INR197 crores of PAT loss in Q3. And for the entire year, we had a PAT loss
INR197 crore
r, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 crores in Q4 as opposed to INR197 crores of PAT loss in Q3. And for the entire year, we had a PAT loss of INR909 crores. We had a growt
INR909 crore
n Q4 as opposed to INR197 crores of PAT loss in Q3. And for the entire year, we had a PAT loss of INR909 crores. We had a growth in order book at the end of Q4. We ended with INR1,514 crores at the end of Q4
INR1,514 crore
had a PAT loss of INR909 crores. We had a growth in order book at the end of Q4. We ended with INR1,514 crores at the end of Q4 as opposed to INR1,019 crores at the end of Q4 of FY25. So, from a revenue mix,
INR1,019 crore
owth in order book at the end of Q4. We ended with INR1,514 crores at the end of Q4 as opposed to INR1,019 crores at the end of Q4 of FY25. So, from a revenue mix, India once again dominated our business, 88% w
88%
crores at the end of Q4 of FY25. So, from a revenue mix, India once again dominated our business, 88% was from India. And from order book also, it was very similar where it was dominated by the India
rs,
ss as far as bookings are concerned. So even though we made initial wireless business with customers, our quarter revenue was driven largely by the sale of wireline products to India private and inter
INR307 crore
umit Dhingra: Good evening, everyone. The revenue for the quarter 4 was INR333 crores compared to INR307 crores in the previous quarter, a quarter-on-quarter growth of 8%. EBIT for the quarter was negative IN
8%
s INR333 crores compared to INR307 crores in the previous quarter, a quarter-on-quarter growth of 8%. EBIT for the quarter was negative INR219 crores as against negative INR239 crores in the previou
Guidance — 20 items
Arnob Roy
opening
“We ended with INR1,514 crores at the end of Q4 as opposed to INR1,019 crores at the end of Q4 of FY25.”
Arnob Roy
opening
“We also received PLI incentives for FY25, an additional INR69 crores, reaching a total of INR469 crores for FY25.”
Arnob Roy
opening
“Sumit Dhingra, our current CFO, has resigned from the services of the company, and it will be effective from the close of business hours on May 15th.”
Arnob Roy
opening
“147 patents are filed in FY26, with more than 150 contributions to the evolving 3GPP standards.”
Arnob Roy
opening
“And the other transformation that will happen is that close to 50% of the new AI traffic will be processed at the edge nodes, where edge inferencing is going to play a big role in the architecture of the global AI networks.”
Arnob Roy
opening
“There will be significant investments in new networks with 400 gig, 800 gig connectivity, even at the access and at the edge to cater to the significant traffic growth.”
Arnob Roy
opening
“And AI is also expected to accelerate the adoption of 6G, and AI technology will be natively embedded in the RAN and edge and core of the network.”
Arnob Roy
opening
“There will be significant scaling up of our optical solutions and packet switching and routing and convergence with the edge compute in the edge and access networks.”
Arnob Roy
opening
“And AI will be adopted in our network management all across for driving automation, for driving network management and fault prediction and network configuration and driving a huge amount of automation and optimization of the network.”
Arnob Roy
opening
“So the key takeaways for FY26 is that it has been a year of consolidation and transformation for us.”
Risks & concerns — 5 flagged
But yes, the cost and also the lead time is also a challenge for us.
— Arnob Roy
Because, I mean, the purpose to ask this question was to understand how much should we expect the margin compression at the contribution margin level, because it's not only the memory, even the chip prices have sort of inched up because that demand for chips has also been higher.
— Pranav Kshatriya
So, again, difficult to give the overall size of the funnel number, but it is substantial.
— Sanjay Malik
So difficult to, again, give a number projection on it.
— Sanjay Malik
The point is that since we are in the deep-tech space, being in a situation where you don't invest in technology evolution is a bigger risk for the future of your business than the other way around, right?
— Arnob Roy
Q&A — 10 exchanges
Q
Hi, am I audible?
Management
Yes, you are audible, Shailesh. So, my question is that in February we got a Massive MIMO deal for 5G networks and also a deal for 4G network in South Asia. So, is there any data for quantify these orders or deals so that we can consider the future outlook of this deal, how it will affect the revenue and the overall financials and the timeline of this project? So, Shailesh, typically we do not go into specific deal numbers and all, but a lot of 5G Massive MIMO business will actually get revenue over this current financial year in FY27. Some of the revenue of the 4G deal happened in the past fi
Q
Hi. Thank you for the opportunity. My first question is regarding the order book. I mean, this INR1,500 odd crores order book, you said almost 83% of that is coming from the India business. Does that include the BSNL 4G project as well?
Arnob Roy
No, that does not include the BSNL 4G project. So, this is purely BharatNet and other private Telco whatever you might have? Yes. This is from our customers, both in India as well as international, for our wireline and wireless business, but doesn't include the BSNL 4G at all. And should we assume that most of this will be sort of executable in this year itself? And hence, potentially the revenue should be somewhat similar, if not higher than this number. I'm asking directionally, not the exact number? Yes, a good portion of this will be converted to revenues in this current financial year. Ok
Q
Question is on balance sheet. There's a good increase in intangibles under development from INR400 crores to INR960 crores. What does that part of it is?
Sumit Dhingra
Yes. So, I think intangible under development commonly consists of our product development effort and also related to the IP or the technology license or the technology transfer that we did with NEC early part of or towards the end of the previous year. And that is partly getting reflected in the intangible under development. So, that investment was about INR550-odd crores. Everything has been done or still it is to be done? A large part of it is done. I think it is linked to milestones and I think balanced milestones we expect to get done within the next one or two quarters. With the commerci
Q
So, first of all, I had a complaint like the timing for the con call was 7:15 and we started around 8:15, and the results were -- I mean, the presentation was out at 8:13 or 8:12. So, we didn't get any time to read or analyze the presentation before the con-call. And this has been repeated for the past seven, eight quarters. I requested four, five quarters earlier also that time should be given to the investors to analyze and read the report at least, but still the same story.
Arnob Roy
Yes, I think this time, especially, we had a lot of problems in uploading, and that took a lot more time. So, we had to postpone a little bit. And once again, I apologize for the entire delay and the short window between the upload and the start of this call. We'll make sure that it doesn't happen in the future. Thank you. And secondly, sir, congratulations on the patents that you've got in this quarter and the developments that you've got on the third side. Well, the presentation that you gave was too technical for a layman like me. So, it sounded like Greek and Latin for me, but whatever you
Q
Yes. Hi, sir. Thanks for taking my question. I just wanted to have a clarification regarding that earlier participant's question regarding the NEC deal for the supply of the massive MIMO radios. So is that part of our current order book of INR1,500 crores, or is that yet to come in? As you said that it will be revenued out in FY '27. So is that already part of our order book?
Sanjay Malik
Okay. So for this deal, actually -- so that basically means that we are entering this account with NEC. So that is the first PO which has been received, which is part of the INR1,500 crores. And as we go along, purchase orders would come as the rollout progresses through the year. Okay. And this would be -- can you give us any idea of how we kind of understand that this will scale up? Because, you know, as you're saying that the outlook FY '27 is that we get some better results this, you know, because FY '26 has been a year of transition. So can you give us some idea on how this is expected to
Q
Hello. Good evening, sir. Thank you so much for taking my question. Sir, as I understand, you're not going to give any guidance, but with regards to just our inventories and receivables, so that's putting a serious strain on our, you know, balance sheet. What is the company's aim regarding that? I understand even if we -- if I net off the other current liabilities for receivables, that still is like nearly double the revenue than what we've done in FY '26. So just wanted to understand, like, what do we expect out of this? And what is -- has company, you know, modeled out if, you know, BSNL ord
Sumit Dhingra
So I think on receivables, I broadly clarified in response to the earlier question. We are expecting to get the balance collections from BSNL significantly during this year, and that should lead to improvement from a receivable standpoint. On inventory also, I think, as you alluded to, I think a large part of this is also coming from the advanced procurement action that we took for the BSNL add-on order. Now, right now we continue to be in discussions with them with respect to getting the order, and, you know, obviously the inventory here is something that gets used in the radios that we sell,
Q
Hi, sir. I was in queue again. So I had a question about data center connectivity business. So TCS is actively building the data centers, actively participating in data center building. They have a plan of when we go to. Do we have certain benefits of being a Tata Group company and we can get a CEO from TCS in some way? Do we have a benefit, not in terms of amount, but in terms of being a group company? That's what my question was.
Arnob Roy
Well, I mean, independent of being a group company, we are engaged with not only TCS, but other data center builders for our products. And a lot of our success in Optical has been as part of those data center build-outs. So TCS is, yes, one of our important customers as well for that, for data center applications. And yes, we are closely engaged with them on their future business plans. But I'd like to highlight that they are not the only one for our data center business related growth. Okay. Thank you. That was my question.
Q
Hello. Can you hear me?
Arnob Roy
Yes, we can hear you, Arpit. Yes. Hi, hi, hi. So over the last year, we filed on a couple of patents. I just wanted an idea regarding when do these patents generate revenue for us? And what is the rationale behind filing so many patents? So what's the future outlook regarding these patents? Yes, see, as a deep-tech company, we need to file patents to one is to protect our inventions so that our innovations are not replicated easily. The second part of this is that especially in the wireless space, there is a lot of the patents that go into what are called the standard essential patents. These
Q
Yes, good evening. Can you hear me?
Management
Yes, we can hear you. Yes, thanks for the opportunity. So just a couple of questions. So the first question is, is it reasonable to expect a breakeven in FY’27 and a PAT positive in FY’28? That's the goal. I mean, we do not give guidance, but that's really the goal. As I said, FY’26 has been a year of investment and FY’27, we expect to see far better financial results in terms of the business outlook that we have and with the investments and the expense control that we will have within the company. The expectation is that, yes, financial turnaround as quickly as possible, starting with FY’27.
Q
Yes, so thank you Mohit. So thanks everyone for attending the call and for all your questions. You know, again, once again, first of all, once again, my apologies for starting this an hour later than the scheduled time. And secondly, as you've seen the results of FY’26, the key takeaway I want you gentlemen to have is that yes, the results have been quite disappointing. But at the same time, we are positive about our future based on which we have made substantial investments during the year to make sure our products are ready, and technologically ready and capable for the business and the tech
Management
Speaking time
Arnob Roy
30
Moderator
12
Ritesh Poladia
10
Sanjay Malik
9
Shailesh Jahagirdar
8
Sumit Dhingra
7
Pranav Kshatriya
6
R. Vaidyanathan
6
Pratap Maliwal
5
Management
4
Opening remarks
Mohit Mishra
Yes, thank you. Good evening, everyone. Thank you for joining on the Q4 FY26 results conference call of Tejas Networks Limited. We have the management with us of Tejas Networks on this call, represented by Mr. Arnob Roy, Managing Director and CEO; Mr. Sumit Dhingra, CFO; Dr. Kumar N. Sivarajan, CTO and Mr. Sanjay Malik, Chief Business and Strategy Officer. I would like to invite Mr. Arnob Roy to initiate with opening remarks, post which we will have a Q&A session. Thank you and over to you, sir.
Arnob Roy
Yes. Thank you, Mohit. Good evening and welcome everyone to our quarterly earnings call presentation. At the outset, let me sincerely apologize for the delay. We have a delay of an hour. We had a lot of technical problems uploading other materials to the SEBI site and that largely caused the delay. So, once again, I profusely apologize for the delays for the start of the conference. So, let me begin by walking you through the Q4 financial numbers. So, in Q4, we had a revenue of INR333 crores as opposed to INR307 crores in Q3. And for the year, we had revenues of INR1,103 crores. We had a net PAT loss of INR211 crores in Q4 as opposed to INR197 crores of PAT loss in Q3. And for the entire year, we had a PAT loss of INR909 crores. We had a growth in order book at the end of Q4. We ended with INR1,514 crores at the end of Q4 as opposed to INR1,019 crores at the end of Q4 of FY25. So, from a revenue mix, India once again dominated our business, 88% was from India. And from order book also,
Sumit Dhingra
Good evening, everyone. The revenue for the quarter 4 was INR333 crores compared to INR307 crores in the previous quarter, a quarter-on-quarter growth of 8%. EBIT for the quarter was negative INR219 crores as against negative INR239 crores in the previous quarter. And profit after tax was negative INR211 crores compared to negative INR197 crores in the previous quarter. The full year revenue was INR1,103 crores and profit after tax of negative INR909 crores. Inventory at the end of the quarter stood at INR2,438 crores compared to INR2,363 crores in the previous quarter. Receivables at INR3,258 crores and payables at INR478 crores. The cash position at the end of the quarter was INR505 crores and a net debt of INR3,531 crores. At gross level, the borrowings were INR4,035 crores at the end of the quarter. And I'll ask Arnob to take over the next few slides.
Arnob Roy
Thank you, Sumit. I'd like to add some color to the business that has happened over Q4 and also review our business during the year. So during the quarter, some of the significant things that happened in our wireless business was signing an agreement with NEC to manufacture and supply our 5G Massive MIMO radios for a global customer. The other significant thing was that we received an initial order for the expansion of 4G networks from a customer in South Asia. And we have multiple ongoing field trials for our 4G and 5G RAN products across South Asia and the Americas. And we recently successfully completed a 5G POC in South America. For our wireline business, in the quarter, we completed the shipment of a significant number of IP/MPLS routers for BharatNet Phase III. As you know, we are the largest supplier in terms of number of circles for BharatNet Phase III. And several sites are now carrying live traffic. We supplied a major amount of 100 gig and 400 gig WDM systems to a Tier-1 tel
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