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Time of India
11 hours ago
- Business
- Time of India
Delay in receipt of PO, shipments of BSNL 4G sites dent Tejas Networks' Q1FY26 financials
Mumbai: After Tata Consultancy Services (TCS) reported a slump in its revenue due to ramp down in state-run Bharat Sanchar Nigam Ltd's 4G project, the IT services leader's equipment supplier Tejas Networks also reported a sharp impact, pulling its stock down 10% intraday on Tuesday. The top management of Tejas Networks, a Tata Group company, said on an earnings call late Monday that while an add-on purchase order was signed with BSNL for an additional 18,000 4G sites, the purchase order didn't come through in the April-June quarter, dragging its revenue down 89% quarter-on-quarter and widening its net loss to ₹194 crore. 'One of the key reasons for the shortfall of revenue in Q1 was the delayed receipt of PO and shipment of 18,000 sites of BSNL 4G network, which we were expecting to do in Q1 but has got delayed a bit,' Arnob Roy, chief operating officer of Tejas Networks, said during the call. "For few other customers, we also had delays in getting shipment clearances and also arrival of inventory,' he added. A senior executive close to BSNL, however, claimed that there had been no delay from the telco's end. Tejas Networks' revenue fell to ₹202 crore in April-June from ₹1,907 crore in the preceding quarter. Its losses expanded to ₹194 crore from ₹72 crore during this period. The company's shares closed 6.6% lower at ₹653.25 apiece on the BSE on Tuesday, after touching an intraday low of ₹629.65. Both Tata Group companies have been heavily reliant on the ₹19,000 crore mega deal which was awarded by BSNL in May 2023 – one of the largest ever contracts for TCS. Of this, TCS had awarded a ₹7,492 crore order to Tejas Networks for equipment supply. The 24-month contract for setting up 100,000 4G sites had boosted revenues of both companies. TCS had been an outlier earlier, recording growth owing to the BSNL deal, even as its overseas revenue was declining in the face of macroeconomic headwinds. In the case of Tejas Networks, nearly 60%-80% of its revenue had been dependent on the BSNL contract , growing in triple digits quarter-on-quarter. However, after the project ended in May, BSNL awarded a ₹2,903 crore add-on purchase order to TCS for setting up additional 18,685 4G sites. Tejas Networks, in turn, was awarded ₹1,525.53 crore order for supplying Radio Access Network equipment . However, the delay in closing the BSNL order has led to extension of execution timelines. Consequently, TCS recorded a 3.1% sequential decline in revenue, 2.8 percentage points of which was attributable to BSNL alone. 'We just received an advance purchase order (PO). We are awaiting circle-wise POs. Once we get it, then the execution starts,' TCS' chief financial officer Samir Seksaria said during the company's earnings call last week.
Time of India
19 hours ago
- Business
- Time of India
TCS revenue slump affects Tejas Networks stock: Impact of delayed BSNL 4G project
After Tata Consultancy Services (TCS) reported a slump in its revenue due to ramp down in state-run Bharat Sanchar Nigam Ltd's 4G project, the IT services leader's equipment supplier Tejas Networks also reported a sharp impact, pulling its stock down 10% intraday on Tuesday. The top management of Tejas Networks, a Tata Group company, said on an earnings call late Monday that while an add-on purchase order was signed with BSNL for an additional 18,000 4G sites, the purchase order didn't come through in the April-June quarter, dragging its revenue down 89% quarter-on-quarter and widening its net loss to Rs 194 crore. 'One of the key reasons for the shortfall of revenue in Q1 was the delayed receipt of PO and shipment of 18,000 sites of BSNL 4G network, which we were expecting to do in Q1 but has got delayed a bit,' Arnob Roy, chief operating officer of Tejas Networks, said during the call. "For few other customers, we also had delays in getting shipment clearances and also arrival of inventory,' he added. A senior executive close to BSNL, however, claimed that there had been no delay from the telco's end. Live Events Tejas Networks' revenue fell to Rs 202 crore in April-June from Rs 1,907 crore in the preceding quarter. Its losses expanded to Rs 194 crore from Rs 72 crore during this period. The company's shares closed 6.6% lower at Rs 653.25 apiece on the BSE on Tuesday, after touching an intraday low of Rs 629.65. Both Tata Group companies have been heavily reliant on the Rs 19,000 crore mega deal which was awarded by BSNL in May 2023 – one of the largest ever contracts for TCS. Of this, TCS had awarded a Rs 7,492 crore order to Tejas Networks for equipment supply. The 24-month contract for setting up 100,000 4G sites had boosted revenues of both companies. TCS had been an outlier earlier, recording growth owing to the BSNL deal, even as its overseas revenue was declining in the face of macroeconomic headwinds. In the case of Tejas Networks, nearly 60%-80% of its revenue had been dependent on the BSNL contract , growing in triple digits quarter-on-quarter. However, after the project ended in May, BSNL awarded a Rs 2,903 crore add-on purchase order to TCS for setting up additional 18,685 4G sites. Tejas Networks, in turn, was awarded Rs 1,525.53 crore order for supplying Radio Access Network equipment . However, the delay in closing the BSNL order has led to extension of execution timelines. Consequently, TCS recorded a 3.1% sequential decline in revenue, 2.8 percentage points of which was attributable to BSNL alone. 'We just received an advance purchase order (PO). We are awaiting circle-wise POs. Once we get it, then the execution starts,' TCS' chief financial officer Samir Seksaria said during the company's earnings call last week. Economic Times WhatsApp channel )
Business Standard
2 days ago
- Business
- Business Standard
Tejas Networks slumps on reporting dismal Q1 PAT
Tejas Networks slipped 5.80% to Rs 658.85 after the company reported a consolidated net loss of Rs 193.87 crore in Q1 FY26, a sharp decline from the net profit of Rs 77.48 crore posted in the same quarter last year. The companys total revenue from operations plunged 86.49% to Rs 201.98 crore in Q1 FY26, down from Rs 1,496.07 crore recorded in the corresponding quarter of the previous year. Pre-tax loss for the quarter stood at Rs 297.35 crore, compared to a profit before tax of Rs 121.55 crore in Q1 FY25. Cash and cash equivalents were at Rs 545 crore in Q1 FY26, down 34.09% quarter-on-quarter from Rs 827 crore in Q4 FY25. During the quarter, the companys order book included Rs 1,241 crore in confirmed orders, along with an expected Rs 1,526 crore order from BSNL for the deployment of approximately 18,700 sites, compared to Rs 1,019 crore in Q4 FY25. Looking ahead to FY26, Tejas Networks highlighted significant expansion of its product portfolio in FY25, which has increased its addressable market. The company now supports 5G over multiple bands and has enhanced its offerings with advanced 5G maMIMO radios. It has also acquired a field-proven 4G/5G Core, expanded its IP/MPLS router family, and enhanced its optical portfolio with 800G/1.2T DWDM systems. Additionally, the FTTx portfolio has been upgraded with new XGSPON products. The global markets for Tejas Networks product segments are projected to grow, with a robust domestic opportunity pipeline that includes large projects in both the private and government sectors. The company has secured several new customers and application wins across these sectors, which are expected to expand in FY26. Strategic partnerships with NEC and Rakuten are anticipated to provide access to global customers and joint go-to-market opportunities. Furthermore, an expanded global sales footprint and early strategic wins are expected to drive strong momentum for growth in international business. Arnob Roy, COO of Tejas Networks, said, "In Q1 FY26, we signed strategic partnerships with Rakuten Symphony for developing O-RAN solutions and with Intel and some mobile phone manufacturers for adopting our D2M chipsets. These partnerships enhance our go-to-market initiatives in international markets. We won orders for our routers for BharatNet Phase 3 and optical equipment from private operators in India. Our shortfall in revenue was due to delays in the receipt of a few purchase orders, including the expansion order from BSNL." Sumit Dhingra, CFO said, "In Q1 FY26 we had a revenue of Rs. 202 Cr and a net loss of Rs. 194 Cr, largely due to lower revenue. We ended the quarter with an order book of Rs. 1,241 Cr, representing a QoQ growth of 22%. With the award of the expansion order of 18,685 sites of BSNL 4G to TCS, we expect to receive the corresponding PO for supply of RAN equipment worth Rs. 1,526 CRORE Tejas Networks designs and manufactures wireline and wireless networking products, with a focus on technology, innovation, and R&D. TNL carrier-class products are used by telecom service providers, utilities, governments, and defense networks in 75+ countries. Tejas Networks is a part of the Tata Group, with Panatone Finvest (a subsidiary of Tata Sons) being the majority shareholder.
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Business Standard
2 days ago
- Business
- Business Standard
Tejas Networks slips 10%, hits 52-wk low on weak Q1; revenue tanks 87% YoY
Tejas Networks share price tanked on the back of weak set of results in the June quarter of financial year 2026 (Q1FY26). SI Reporter New Delhi Tejas Networks share price: Tejas Networks share price was under pressure on Tuesday, July 15, 2025, with the scrip tanking up to 9.97 per cent to hit an intraday low of ₹629.65 per share. At 10:10 AM, Tejas Networks share price was trading 6.40 per cent lower at ₹654.65. In comparison, BSE Sensex was trading 0.16 per cent higher at 82,383.84 levels. Why did Tejas Networks slip in trade today? Tejas Networks share price tanked on the back of weak set of results in the June quarter of financial year 2026 (Q1FY26). The company reported a consolidated loss of Rs ₹193.87 crore in the June quarter of FY26, as against a profit of ₹77.48 crore in the same quarter last year (Q1FY25). The company's revenue from operations nosedived about 87 per cent year-on-year (Y-o-Y) to ₹202 crore in Q1FY26, from ₹1,563 crore Q1FY25. Sumit Dhingra, CFO of Tejas Networks, said, "In Q1FY26 we had a revenue of ₹202 crore and a net loss of ₹194 crore, largely due to lower revenue. We ended the quarter with an order book of ₹1,241 crore, representing a Q-o-Q growth of 22 per cent. With the award of the expansion order of 18,685 sites of BSNL 4G to TCS, we expect to receive the corresponding PO for supply of RAN equipment worth ₹1,526 crore." "In Q1FY26, we signed strategic partnerships with Rakuten Symphony for developing O-RAN solutions, and with Intel and some mobile phone manufacturers for adopting our D2M chipsets. These partnerships enhance our Go-to- Market initiatives in international markets. We won orders for our Routers for Bharatnet- phase 3 and Optical equipment from private operators in India. Our shortfall in revenue was due to delays in the receipt of a few purchase orders, including the expansion order from BSNL,' said Arnob Roy, COO of Tejas Networks. ALSO READ | About Tejas Networks Tejas Networks, a Tata Group company, is a among the leading Indian telecom and networking solutions provider specialising in the design, development, and manufacturing of advanced wireless (4G/5G) and wireline (optical transmission and switching) products. Known for its strong R&D-driven approach, Tejas holds a top-10 global ranking in optical aggregation and broadband access, with over 520 patents filed to date. With a presence in more than 75 countries, Tejas Networks serves a wide range of clients, including telecom operators, ISPs, utilities, and government and defense agencies. The company focuses on building next-generation, high-capacity, and secure communication networks. Recent collaborations, such as its partnership with Intel to bring Direct-to-Mobile (D2M) capability to laptops, underscore its commitment to innovation and cutting-edge solutions.
Mint
2 days ago
- Business
- Mint
Tejas Networks share price crashes 10% to 26-month low after company reports net loss in Q1
Tejas Networks, a Tata Group-backed company, saw its shares crash 10% in Tuesday's trading session (July 15), immediately after the opening bell, hitting a new 26-month low of ₹ 627.45 apiece. The sharp fall came after the company's June quarter results disappointed the Street, with the firm reporting a net loss due to weaker revenue. The company, which announced its Q1 results post-market hours on Monday, reported a net loss of ₹ 194 crore compared to a net profit of ₹ 77 crore in the same period last year. The losses also widened compared to the previous March quarter, when the company reported a net loss of ₹ 72 crore Revenue from operations plunged 87% year-on-year to ₹ 202 crore in Q1, primarily due to delays in the receipt of purchase orders, inventory arrival, and shipment clearances for a few customers, as per the company's regulatory filing. On the operating front, the company reported an EBITDA loss of ₹ 136 crore, compared to ₹ 230 crore in Q1 FY25. Although the company posted a weak set of numbers, it secured fresh orders for routers under BharatNet Phase 3 and optical equipment while also signing strategic partnerships, closing the quarter with an order book of ₹ 1241 crore. Mr. Arnob Roy, COO of Tejas Networks, said, 'In Q1 FY26, we signed strategic partnerships with Rakuten Symphony for developing O-RAN solutions and with Intel and some mobile phone manufacturers for adopting our D2M chipsets. These partnerships enhance our go-to-market initiatives in international markets. We won orders for our routers for BharatNet Phase 3 and optical equipment from private operators in India. Our shortfall in revenue was due to delays in the receipt of a few purchase orders, including the expansion order from BSNL.' Mr. Sumit Dhingra, CFO, added, "In Q1 FY26, we had a revenue of ₹ 202 crore and a net loss of ₹ 194 crore, largely due to lower revenue. We ended the quarter with an order book of ₹ 1,241 crore, representing a QoQ growth of 22%. With the award of the expansion order of 18,685 BSNL 4G sites to TCS, we expect to receive the corresponding PO for the supply of RAN equipment worth ₹ 1,526 crore." With today's crash, the stock has declined 56% from its all-time high of ₹ 1,495, recorded in June 2024. Although the stock has more than halved, it is still trading with a 1,065% gain over the past five years. Tejas Networks is part of the Tata Group, with Panatone Finvest (a subsidiary of Tata Sons) as its majority shareholder. The company designs and manufactures high-performance wireline and wireless networking products for telecom service providers, internet service providers, utilities, defense, and government entities in over 75 countries. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
