Stock Report

Tejas Networks Limited Reports FY26 Results: Strategic Investments Weigh on Short-Term Profitability

Posted On : 2026-04-15 21:10:16( TIMEZONE : IST )

Tejas Networks Limited (NSE: TEJASNET, BSE: 540595), a global optical and broadband networking company and part of the Tata Group, has released its audited consolidated financial results for the quarter and year ended March 31, 2026. The results reflect a transitional year for the company as it navigates a changing product mix and continues significant R&D and operational investments.

Annual Financial Performance (FY26)

The company reported a contraction in annual revenue and profitability compared to the previous fiscal year:

Total Revenue from Operations: Stood at ₹1,103.28 crore, compared to ₹8,923.21 crore in FY25.

Total Income: Reported at ₹1,136.66 crore for the full year.

Loss After Tax: The company recorded a net loss of ₹908.89 crore for FY26, as against a profit of ₹446.53 crore in the preceding year.

Earnings Per Share (EPS): Basic EPS for the year stood at (₹51.35), reflecting the impact of the annual loss.

Q4FY26 Quarterly Highlights

The fourth quarter showed a modest sequential improvement in revenue but remained under pressure:

Quarterly Revenue: Revenue from operations was ₹332.69 crore, a 8.4% increase over the December 2025 quarter (₹306.79 crore).

Loss After Tax: The net loss for Q4 was ₹211.34 crore, slightly wider than the ₹196.55 crore loss in the previous quarter.

Operating Costs: The company maintained high levels of investment in its future, with Employee Benefit Expenses at ₹99.78 crore and Depreciation/Amortization at ₹100.84 crore for the quarter.

Expense and Margin Analysis

The financial year was characterized by high fixed costs associated with the company's expansion and R&D focus:

Finance Costs: Stood at ₹302.83 crore for the year, an increase from ₹251.82 crore in FY25.

Cost of Materials: Total materials consumed for the year amounted to ₹820.51 crore.

Reserves: Despite the annual loss, the company maintains a solid capital structure with Reserves (excluding revaluation) at ₹2,749.86 crore.

Strategic Outlook

The results underscore a period of consolidation for Tejas Networks. The company continues to focus on large-scale indigenous technology development and the execution of high-value networking projects. While the current year's financials reflect front-loaded expenses and credit loss allowances (₹61.06 crore for the year), the long-term strategy remains centered on capturing the burgeoning demand for 5G, fiber-to-the-home (FTTH), and data center networking solutions in India and globally.

Shares of Tejas Networks Limited was last trading in BSE at Rs. 449.90 as compared to the previous close of Rs. 442.25. The total number of shares traded during the day was 175442 in over 4149 trades.

The stock hit an intraday high of Rs. 455.75 and intraday low of 446.25. The net turnover during the day was Rs. 79099823.00.