Tejas Networks (TEJASNET) Q3 24/25 earnings summary

Executive summary

• Q3 FY2025 net revenue reached INR 2,642 crores, up 4.7x year-over-year, with PAT at INR 166 crores and an order book of INR 2,681 crores at quarter-end.

• Major achievements include completion of RAN supplies for over 86,000 BSNL 4G/5G sites, a three-year Vodafone Idea contract, and network modernization wins in the US and Asia.

• Corporate highlights include new executive appointments, industry awards, expansion of Bangalore facilities, and establishment of a Center of Excellence for wireless research.

• The group comprises the parent and subsidiaries in Singapore, Nigeria, and the USA.

Financial highlights

• Q3 consolidated revenue from operations was INR 2,642 crores, with other operating revenue of INR 144.94 crores, totaling INR 2,655.16 crores; PAT was INR 166 crores.

• EBIT for the quarter was INR 260 crores, and PLI incentives contributed INR 144.94 crores.

• Inventory at INR 3,127 crores, trade receivables at INR 4,730 crores, and collections of INR 2,000 crores in the quarter.

• Borrowings at INR 3,157 crores, cash at INR 643 crores, mainly for working capital.

• Earnings per share (basic) for Q3 FY25 was INR 9.44 (consolidated) and INR 9.42 (standalone).

Outlook and guidance

• Anticipates conversion of large opportunities (BSNL 4G/5G expansion, BharatNet Phase 3, Indian Railways, private 5G, and international deals) in Q4 and Q1 FY2026, with execution expected in FY2026.

• Strong business drivers include global 4G/5G deployments, broadband investments, utility network modernization, and AI data center networking.

• Continued investment in R&D and sales expansion, especially in North America and Latin America.

• PLI incentives recognized for the quarter and nine months ended December 31, 2024, were INR 144.94 crores and INR 367.74 crores, respectively.