Any current/future new fundraising through debt or equity?

In FY26, Tejas Networks invested heavily in intangible assets (around INR700 crores), largely funded through debt, reflecting a strategic decision to prioritize R&D despite business shortfalls. Management acknowledges the risk of balance sheet deterioration due to sustained debt-funded investments but considers technology evolution critical for future growth. There is no explicit mention of any new or planned fundraising through additional debt or equity in the transcript. The company is focusing on improving cash generation and expects better financial results in FY27 with tighter expense con

Any current/future capex/capital investment/strategic investment?

In FY26, Tejas Networks made substantial investments to ensure their products are technologically ready for future business and technology transitions. The company significantly increased intangible assets under development from INR 400 crores to INR 960 crores, mainly reflecting ongoing product development and IP/technology licensing efforts, including technology transfer agreements (e.g., with NEC). Capital investments include continued R&D expenditure, viewed as critical for future business growth, despite business shortfalls and losses in FY26. Plans indicate continued R&D investment

Future growth expectations in sales/revenue/volumes?

FY26 was a year of transition with delayed large customer projects causing significant revenue shortfall. FY27 business outlook is positive with expectations of much better financial results due to current investments and cost optimization. The INR1,500 crore order book (excluding BSNL 4G) indicates solid demand with a majority from India and some international wireless wins. Follow-on purchase orders from deals like the NEC 5G Massive MIMO are expected as rollouts progress in FY27. Inventory pre-positioned for BSNL 4G add-on orders will enable faster delivery and revenue recognition once orde

Future growth expectations in earnings/operating earnings/profits/EPS?

FY’26 results were disappointing with PAT loss of INR909 crores. FY’27 is expected as a year of transition with better financial results due to business outlook and cost optimization. Management aims for breakeven in FY’27 and PAT positive by FY’28, although no firm guidance is given. Improved collections expected in FY’27, especially from BSNL orders, reducing DSO and receivables. Continued investments in R&D planned, tailored to business outlook but optimized for profitability. Growth drivers include wireless business expansion, 5G Massive MIMO deals (NEC partnership), international trials,

Current/ Expected Orderbook/ Pending Orders?

The order book as of Q4 FY26 stands at approximately INR1,514 crores, up from INR1,019 crores in Q4 FY25. About 83-88% of the order book is from India business, excluding the BSNL 4G project. BSNL add-on order (about 18,000 sites) is still under discussion and not yet part of the INR1,500 crores order book. The company expects the BSNL add-on order purchase order soon, with inventory already in place for quick delivery. Wireless business includes signed agreements with NEC for 5G Massive MIMO radios, contributing to the order book and expected revenue in FY27. Several field trials fo

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Tejas Networks LtdQ1 FY26Telecom - Equipment & Accessories

Tejas Networks Ltd Q1 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹624Market Cap: ₹7.4K CrSector: Telecom - Equipment & Accessories

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→FY26 was a year of transition with delayed large customer projects causing significant revenue shortfall.
→FY27 business outlook is positive with expectations of much better financial results due to current investments and cost optimization.
→The INR1,500 crore order book (excluding BSNL 4G) indicates solid demand with a majority from India and some international wireless wins.
→Follow-on purchase orders from deals like the NEC 5G Massive MIMO are expected as rollouts progress in FY27.
→Inventory pre-positioned for BSNL 4G add-on orders will enable faster delivery and revenue recognition once orders are finalized.
→Investments in R&D and technology evolution continue to support future growth and product readiness for AI and 5G/6G network demand.
→AI-driven network transformation is expected to drive a mega growth cycle in network infrastructure, boosting demand long-term.
→Although no formal revenue guidance is given, management is confident about growth and scaling up current business opportunities in FY27.

Margin guidance

Category 3

→FY’26 results were disappointing with PAT loss of INR909 crores.
→FY’27 is expected as a year of transition with better financial results due to business outlook and cost optimization.
→Management aims for breakeven in FY’27 and PAT positive by FY’28, although no firm guidance is given.
→Improved collections expected in FY’27, especially from BSNL orders, reducing DSO and receivables.
→Continued investments in R&D planned, tailored to business outlook but optimized for profitability.
→Growth drivers include wireless business expansion, 5G Massive MIMO deals (NEC partnership), international trials, and large opportunities in South Asia and Americas.
→Strong product pipeline including state-of-the-art wireless and wireline products, AI-based network management, and hyperscalable data center interconnect solutions.
→Management maintains a positive long-term outlook based on industry trends despite short-term financial challenges.

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Fundraise plans

→In FY26, Tejas Networks invested heavily in intangible assets (around INR700 crores), largely funded through debt, reflecting a strategic decision to prioritize R&D despite business shortfalls.
→Management acknowledges the risk of balance sheet deterioration due to sustained debt-funded investments but considers technology evolution critical for future growth.
→There is no explicit mention of any new or planned fundraising through additional debt or equity in the transcript.
→The company is focusing on improving cash generation and expects better financial results in FY27 with tighter expense control.
→The management emphasized optimizing investments and cost structure in FY27 to support financial turnaround without explicitly indicating fresh fundraising plans.

Order book

→The order book as of Q4 FY26 stands at approximately INR1,514 crores, up from INR1,019 crores in Q4 FY25.
→About 83-88% of the order book is from India business, excluding the BSNL 4G project.
→BSNL add-on order (about 18,000 sites) is still under discussion and not yet part of the INR1,500 crores order book.
→The company expects the BSNL add-on order purchase order soon, with inventory already in place for quick delivery.
→Wireless business includes signed agreements with NEC for 5G Massive MIMO radios, contributing to the order book and expected revenue in FY27.
→Several field trials for 4G and 5G RAN products ongoing internationally.
→The order book consists of wireline and wireless products for India and international customers, excluding BSNL 4G.
→Follow-on purchase orders from NEC and other customers are anticipated as rollouts continue in FY27.

Capex plans

Yes

→In FY26, Tejas Networks made substantial investments to ensure their products are technologically ready for future business and technology transitions.
→The company significantly increased intangible assets under development from INR 400 crores to INR 960 crores, mainly reflecting ongoing product development and IP/technology licensing efforts, including technology transfer agreements (e.g., with NEC).
→Capital investments include continued R&D expenditure, viewed as critical for future business growth, despite business shortfalls and losses in FY26.
→Plans indicate continued R&D investment in FY27 but optimized and tailored to business outlook to ensure better financial results without compromising technology evolution.
→Investments are partly debt-funded, with a strategic focus on maintaining deep-tech innovation to position for several multiples of current business scales in coming years.
→Strategic partnerships and licensing, such as with NEC, complement these investments and support future revenue streams.

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