Tejas Networks Ltd

Capital / Securities

• Allotted 43,418 equity shares on 25 Sep 2026 under RSU plans.
• Paid-up capital increased to ₹178,14,10,210 (17,81,41,021 shares).

Tejas Networks Ltd — Trading Window closure from September 16, 2026 till 48 hours after the dissemination of the unaudited financial results for the quarter ending September 30, 2026

Share Allotment

• Allotted 32,268 equity shares on September 11, 2026 under stock option plans.
• Breakdown by plan: 300 (ESOP 2014), 5,125 (RSU 2017), 26,843 (RSU 2022).
• Paid-up equity share capital increased to ₹178,09,76,030; total shares now 17,80,97,603.
• Shares rank pari passu with existing equity shares.

Order details

• TCS has issued a Letter of Intent for Tejas Networks to supply RAN equipment, accessories and installation materials.
• For BSNL's 4G network across 18,685 sites.
• Total value of the order is Rs.1537 Crores.
• Detailed Purchase Order will be issued by TCS in due course.
• Awarding entity is domestic to India.

Financial Performance

• Q1 revenue INR402 crores, up 20% QoQ; PAT improved slightly.
• Order book rose modestly; 46 patents filed in Q1; total 722.
• End-to-end 5G win in South America; 5G radios supplied to global customer with NEC.
• BSNL 4G expansion: final stages for 26,000 sites; expected this quarter.
• R&D activity highlighted with patent filings and new product development.

Operating Update

• International shipments of 5G radios; domestic optical/FTTx shipments.
• 5G backhaul: 100G/400G DWDM for enterprise networks and hyperscalers.
• Power-utility network modernization selected as vendor; ongoing modernization trend.
• Africa wholesale expansion using 100G/400G DWDM.
• D2M field trials completed with Prasar Bharati and FreeStream.
• D2M product and end-to-end solutions tied to 5G deployments.

Balance Sheet and Cash Flow

• Receivables rose to INR2,232 crores from INR1,900 crores (~INR325 crores).
• Order book INR1,529 crores; India ~93%, international ~7% in current mix.
• Add-on BSNL order not in backlog; South America order included in backlog.
• AMC revenues to start after deployment/acceptance and warranty period; payments follow standard terms.

Q&A Highlights

• Path to profitability: EBITDA/EBIT first; PAT later; 12-18 months timeframe.
• AMC revenues: higher margins; start next few quarters; recognized over 8 years post deployment.
• D2M TAM near $1 billion with nationwide rollout; multiple SI participation anticipated.
• 6G commercialization around 2030; 2029 product; field trials from next year.
• NEC partnership: Tejas as preferred partner for 5G radios.

Outlook and Guidance

• AMC revenues expected to enhance profitability as they commence in coming quarters.
• Management emphasizes positive trajectory in revenue and margins, with working capital improvements anticipated.

Meeting Details

• Date: July 28, 2026; earnings call for Q1 FY27.

Purpose

• Purpose: Earnings call proceedings for Q1 FY27.

Additional Notes

• Recording available: audio of the earnings call on the company website.

Business Overview

• Core business: telecom network equipment with Wireless and Wireline segments.
• Products include 5G radios, optical transport, and FTTx broadband solutions.
• International growth and end-to-end 5G deployments highlighted.

Key Operational Highlights

• Q1 FY27 revenue 402 Cr; QoQ growth 21% over Q4FY26.
• Net PAT -202 Cr; EBIT -194 Cr; PBT -271 Cr.
• Order book end of Q1: 1,529 Cr.
• Revenue mix: India 50%, International 50%.
• 5G RAN win in South America; end-to-end network for operator.
• 5G mMIMO radio shipments completed with NEC partnership.
• BSNL 4G expansion; Tier-1 Indian telco FTTx footprint expansion.
• 46 patents filed in Q1 FY27; cumulative 722; 380 granted.
• 5G backhaul and enterprise: 100G/400G DWDM to two Tier-1 telcos.
• Utility modernization: vendor for a large power utility.
• Data center, residential and enterprise connectivity growth.

Financial Performance

• Revenue from operations: 402 Cr in Q1 FY27.
• EBIT (loss) -194 Cr; PBT -271 Cr; PAT -202 Cr.
• Inventory 2,358 Cr; trade receivables 2,232 Cr.
• Net Working Capital 4,478 Cr; Cash 589 Cr.
• Net Debt 4,277 Cr; Gross Debt 4,866 Cr.
• Order book end Q1: 1,529 Cr.
• Closing order book mix: India 93%, International 7%.
• Revenue grew 21% QoQ versus Q4FY26.

Capital Structure & Liquidity

• Cash at quarter end: 589 Cr.
• Gross debt: 4,866 Cr; Net debt: 4,277 Cr.
• Debt increased due to capex funding.

Strategic Priorities & Outlook

• Expansion of 5G deployments in emerging markets through 2030.
• Global 5G FWA subscriptions projected to reach ~90 million by 2030.
• Expansion of 4G networks in India and emerging international markets.
• Growth in Data Center Connectivity, Residential and Enterprise Broadband.
• Investments in 5G Advanced and 6G; AI-ready end-to-end networks.

Risks & Mitigation

• Working capital increased due to higher receivables and scheduled payouts impacting liquidity.