Tejas Networks Share Price Falls for the Second Consecutive Day, Down 8%

Tejas Networks’ share price traded 0.27% lower at ₹1,005.55 at 1:00 PM on the NSE. The stock opened at ₹1,047.55, lower than ₹ 1,096.25 at its previous close. The company released it Q3 FY25 earnings result yesterday.

Q3 FY25 Financial Details

Tejas Networks’ posted a net profit for the December quarter, reversing the loss from the same period last year. However, sequentially, its net profit declined by more than 40%.

The company reported a consolidated net profit of ₹165.67 crore for the December quarter, compared to a loss of ₹44.87 crore in the same quarter a year ago. This profit was largely driven by a Performance Linked Incentive (PLI) received by the company.

As per news reports, Tejas Networks recognised ₹32.66 crore for the financial year ending March 31, 2023, and ₹123.70 crore for the year ending March 31, 2024, under the PLI scheme after receiving approval from the Department of Telecommunications.

For the quarter ended December 31, 2024, the company recognised ₹144.94 crore in PLI incentives, given the reasonable assurance of meeting the conditions and receiving the grant.

Recent Business Development

In December 2024, Tejas Networks secured a three-year contract with Vodafone Idea Limited (VIL), a leading telecom provider in India, to supply its advanced TJ1400 and TJ1600 packet and optical transmission products.

The collaboration is aimed at enhancing Vodafone Idea’s backhaul capacity and improving network performance across multiple regions as the company accelerates its 4G and 5G rollouts.

The partnership is a significant step in VIL’s efforts to build a scalable, robust, and future-ready backhaul network to manage growing data traffic and bandwidth demands. Tejas Networks’ state-of-the-art products will play a critical role in supporting VIL’s nationwide network expansion and providing superior service to its customers.

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