Why Tejas Networks Share Price Fell Over 10%?

On April 28, 2025, Tejas Networks share price slumped over 10% in the morning trade, reaching a day low of ₹726.10 at 09:40 AM after opening at ₹726.10. The fall in Tejas Networks share price follows the release of Q4FY25, wherein the company posted a loss during the period.

Tejas Network Q4FY25 Results

For Q4 FY25, the net revenue reached ₹1,907 Crore, reflecting a 1.4x year-on-year (YoY) increase. For the full fiscal year (FY25), net revenue stood at ₹8,923 Crore, demonstrating a 3.6x YoY growth. However, the Profit After Tax (PAT) for Q4 FY25 was a loss of ₹72 Crore, while the FY25 PAT amounted to ₹447 Crore. At the end of Q4, Tejas Networks’ order book stood at ₹1,019 Crore.

Key Business Achievements

Tejas Networks achieved several significant milestones during Q4 FY25. Notably, the company successfully completed the supply of radio and baseband equipment for all 100,000 sites in BSNL’s 4G/5G network, showcasing its capability in large-scale deployments. Additionally, Tejas Networks delivered one of the largest single-vendor Radio Access Networks (RAN) in the world in record time.

Tejas also signed a technology collaboration agreement with NEC, Japan, focusing on the development of advanced wireless RAN and Core technologies, along with a joint go-to-market strategy. The company secured key wins for its cutting-edge Optical, PTN, and FTTx products, which are essential in mobile backhaul, broadband services, and power utility networks. Furthermore, Tejas expanded its sales footprint across the Americas, EMEA (Europe, Middle East, and Africa), and ANZ (Australia and New Zealand).

In FY25, Tejas Networks marked its 25th anniversary, a significant milestone in its journey. In light of the company’s strong performance, the Board recommended a 25% dividend (₹2.5 per share), subject to shareholder approval. The company also received substantial Production-Linked Incentive (PLI) incentives, with ₹123 Crore for FY24 and ₹189 Crore for the first tranche of H1 FY25.

FY25 Revenue Mix and Performance Breakdown

Tejas Networks’ revenue composition for FY25 reflected a notable shift in business dynamics. The India-Government segment saw a decline of 66% YoY, contributing just 3% to total revenue. In contrast, the India-Private sector experienced remarkable growth, with a 6x YoY increase, primarily driven by BSNL 4G-related shipments to TCS. This segment contributed 94% to the total revenue. The International segment accounted for 3% of the total revenue, marking an 18% YoY growth, with key shipments to the US, Africa, and South Asia.

Tejas Networks’ closing backlog stood at ₹1,019 Crore, with ₹915 Crore in India and ₹104 Crore in international markets.

Tejas Networks Outlook for FY26

Tejas Networks has significantly expanded its product portfolio in FY25, increasing its addressable market. Key developments include support for 5G over multiple bands, advanced 5G maMIMO radios, and the acquisition of a field-proven 4G/5G Core. The company has also expanded its IP/MPLS router family and enhanced its Optical portfolio with 800G/1.2T DWDM systems, alongside the addition of XGSPON products to its FTTx portfolio.

Also Read: Tejas Networks Share Price Rise 4% on ₹123 Crore PLI Incentive

Looking ahead to FY26, the global markets for these product segments are projected to grow. Tejas Networks has a strong domestic pipeline, including large projects in the government sector. Additionally, new customer acquisitions and applications in both private and government sectors are expected to drive further growth. The partnership with NEC positions Tejas to access global customers through joint go-to-market efforts. The expanded global sales footprint and initial strategic wins will provide strong momentum for increasing Tejas Networks’ international business.

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