Tejas Networks Limited Q3 FY26 Earnings Call Summary

Summary

Tejas Networks Limited - Q3 FY 2026 Earnings Call Summary Friday, January 09, 2026, 4:00 PM

Event Participants

Executives 4 Arnob Roy (ED & COO), Dr. Kumar N. Sivarajan (CTO), Sanjay Malik (CS&BO), Sumit Dhingra (CFO)

Analysts 6 Dhruv Shah, Hirenkumar Thakorlal Desai, Karan Raja, Mohit Mishra, Pranav Kshatriya, Pratap Maliwal, Rajakumar Vaidyanathan, Venkat Suresh Kumar

Financials & KPIs

Geographic & Segment Commentary

• India Business: Accounts for 85% of revenue and 92% of the order book. Focus remains on executing BharatNet Phase 3, where the company won 7 of 12 packages for IP/MPLS routers, and expansion orders from private telcos for WDM and GPON equipment.
• International Business: Represents 15% of revenue with increasing traction in Africa, Southeast Asia, Europe, and Latin America. Key wins include a WDM backbone in Africa and a network transformation project in Southeast Asia, with wireless POCs moving to commercial negotiations.
• Wireless Segment: Significant focus on 4G/5G RAN; selected for a 5G pilot on the Delhi-Mumbai Kavach railway corridor and private 5G wins in ports/mines. Revenue remains lumpy as the large BSNL 4G add-on order (18,000 sites) faces operational delays at the customer end.

Company-Specific & Strategic Commentary

• BSNL Expansion Delay: The 18,000-site 4G add-on order is delayed due to BSNL’s site readiness, not Tejas’s product maturity. Management expects this inventory to deplete rapidly once the PO is received and execution begins in FY27.
• R&D and IP: Filed 26 patents in Q3, totaling 613 filings globally with 370 granted. Focus is heavily weighted toward 5G-Advanced and 6G standards-related technologies.
• Strategic Partnerships: Leveraging partnerships with NEC and Rakuten to drive international wireless engagements. These collaborations are viewed as critical for moving beyond BSNL as an anchor project.
• Data Center Entry: Secured the first win for switching products inside a sovereign data center in India. This marks a shift from providing only interconnect solutions to provide internal networking fabric.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

BSNL Order Delay

• Question: What is the specific reason for the delay in the BSNL 4G expansion? (Karan Raja)
• Answer: It is due to BSNL’s operational readiness regarding sites; it is not a constraint related to Tejas’s products or TCS’s integration (Arnob Roy).

Inventory Levels

• Question: Why is inventory almost twice the amount of orders in hand? (Rajakumar Vaidyanathan)
• Answer: Inventory was pre-procured for the BSNL add-on order (LOI received via TCS) to ensure rapid execution once the PO is finalized (Arnob Roy).

Path to Profitability

• Question: When will the company reach positive bottom-line performance? (Rajakumar Vaidyanathan)
• Answer: Profitability will come as the business reaches a critical scale internationally; the company is currently “replanning” for the next few years after the initial BSNL execution spike (Arnob Roy).

BharatNet Opportunity

• Question: What is the scale of the 50,000+ router deployment for BharatNet? (Pratap Maliwal)
• Answer: Tejas won 7 of 12 packages for the backbone; implementation will occur over the next two years. Specific deal values are not disclosed due to multi-SI arrangements (Sanjay Malik).

Key Takeaway

Tejas Networks reported Q3 FY26 revenue of ₹307 crores, a 17% sequential growth, though it remains in a loss-making transition phase with a PAT of negative ₹197 crores. The quarter was characterized by a heavy reliance on wireline products for Indian private telcos and international ISP wins, while the much-anticipated BSNL 4G expansion order for 18,000 sites faced continued delays due to customer-side site readiness. Strategically, the company is pivoting from its “anchor project” (BSNL) toward international markets and private 5G applications, evidenced by a first-of-its-kind data center switching win and 5G pilot for the Kavach railway project. While the current inventory level of ₹2,363 crores remains a significant working capital drag, management maintains that this will liquidate as BSNL shipments resume in FY27. The company remains focused on R&D, particularly in 5G-Advanced and 6G, to drive higher-margin international business as the primary path to sustainable profitability.