Tejas Networks (TEJASNET) Q2 25/26 earnings summary

Executive summary

• Q2 revenue reached INR 262 crore, up 30% sequentially from INR 202 crore in Q1, driven by key shipments to Indian private and international customers.

• Profit after tax for Q2 was a loss of INR 307 crore, impacted by INR 190 crore in inventory and warranty-related provisions.

• Order book at quarter-end stood at INR 1,200 crore, with 79% of revenue from India and 21% international; order book mix was 93% India, 7% international.

• Major operational milestones include 97,500 BSNL cell towers running on 4G RAN products, new wireless and wireline product launches, and successful deployments in India and international markets.

• Delay in receipt of BSNL 4G add-on PO for 18,000 sites impacted revenue timing.

Financial highlights

• EBIT for Q2 was -INR 394 crore (vs. INR 232 crore in Q1); PBT was -INR 473 crore (vs. INR 297 crore in Q1), both heavily impacted by provisions.

• Adjusted for provisions, EBIT would have been -INR 205 crore and PBT -INR 285 crore.

• Inventory at quarter-end: INR 2,383 crore; receivables: INR 4,026 crore; INR 700 crore collected during the quarter.

• Payables reduced to INR 355 crore from INR 580 crore; borrowings at INR 4,156 crore, mainly for working capital and capex.

• Cash position at INR 417 crore; net working capital at INR 4,906 crore at the end of Q2FY26.

Outlook and guidance

• Management remains bullish on long-term prospects, citing strong business drivers such as rapid technology transitions, growing data consumption, and ongoing 4G/5G and AI datacenter investments.

• Continued investments in product development, sales expansion, and international customer engagements.

• Strategic wins in Europe, Africa, and Asia expected to support international expansion.

• No specific quarterly or annual guidance provided; focus remains on product development and sales expansion.