Order Book Or Contract Wins
Expected: Next 1-2 yearsHIGH confidence
What: Order Book: INR 1,514 Cr
“Order book at end of Q4: INR 1,514 Cr (1,329 Cr in Q3FY26; 1,019 Cr in Q4FY25)”
Tejas Networks Ltd: Is It a Deep Value Opportunity?
Very Weak
As of , Tejas Networks Ltd (Telecom Services) has a deep value score of 10/100 (rated Very Weak).
Tejas Networks Ltd Key Facts
- Market Cap
- ₹9,255 Cr
- Value Score
- 10/100
- Margin of Safety
- -76%
- PAT Growth YoY
- -193%
- Revenue Growth YoY
- -83%
- OPM
- -36.0%
Falling Knife
What's Happening
🔻Earnings declining and PE falling — fundamentals deteriorating
👔Promoter stake down 1.8% this quarter
🌐FII stake decreased 3.3% this quarter
💰Trading 76% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
Next 1-2 yearsHIGH
2. Management Or Ownership Change
April 15, 2026MEDIUM
3. Regulatory Approval Or License Win
FY25MEDIUM
Key Risks
1. Delay in BSNL 4G expansion order receipt and execution
HIGH2. Provisions for past service costs related to the new labor code
MEDIUM3. Net forex loss included in finance costs
LOWSector-Specific Signals
Order BookINR 1,514 Cr+49%
InventoryINR 2,438 Cr
Trade ReceivablesINR 3,258 Cr
Net DebtINR 3,531 Cr
Key Numbers
PAT Growth YoY
-193%
Stable
Revenue YoY
-82%
Stable
Operating Margin
-36.0%
-4200 bps YoY
Current Price
₹520
Dividend Yield
0.48%
3Y PAT CAGR
+80%
Valuation
Significantly OvervaluedWhy Are Tejas Networks Ltd's Earnings Accelerating?
Based on Q4 FY26 earnings • Updated Apr 19, 2026
Management Or Ownership Change
Expected: April 15, 2026MEDIUM confidence
What: CEO Appointment: Arnob Roy
“Appointment of Mr. Arnob Roy currently the Executive Director & Chief Operating Officer, as the Managing Director & Chief Executive Officer”
Regulatory Approval Or License Win
Expected: FY25MEDIUM confidence
What: PLI Incentives: INR 467 Cr cumulative
Impact: INR 69.96 Cr in Q4
“Received Rs 69.96 crore in PLI incentives for FY25 with cumulative PLI incentives reaching Rs 467 crore for FY25”
Geographical Expansion
Expected: Coming monthsMEDIUM confidence
What: International Revenue Mix: 12%
“in the international markets, wherever we are engaging and wherever we are in commercial discussions, the prices are at a much different level”
New Product Or Brand Launch
Expected: Q4 FY26LOW confidence
What: DCI Product Launch: TJ1600-D3
“TJ1600-D3 launched and inaugurated by Hon. Minister of Communications, Shri Jyotiraditya Scindia, at MWC Barcelona”
What Are the Key Risks for Tejas Networks Ltd?
Earnings deceleration risks from management commentary
Delay in BSNL 4G expansion order receipt and execution
HIGHTrigger: Operational readiness and site preparation issues at BSNL.
Management view: Holding inventory to ensure rapid execution once the PO is received.
Monitor: regulatory
Provisions for past service costs related to the new labor code
MEDIUMTrigger: Notification of the new labor code affecting gratuity and compensated absences.
Impact: PAT impact: Included in other expenses
Management view: One-time provisioning completed.
Monitor: labor
Net forex loss included in finance costs
LOWTrigger: Currency fluctuations affecting international transactions.
Management view: Not explained on call
Monitor: fx
What Is Tejas Networks Ltd's Management Saying?
Key quotes from recent conference calls
“from what we hear is that those are still in the works and the expansion order will come to us at the appropriate time for BSNL. [Previous BSNL 4G Expansion PO guidance]”
“we were involved in some of the trials which were happening and those are moving towards commercial negotiations... expected in the coming weeks. [Initiative: International Wireless Expansion]”
“this particular order is for BharatNet Phase 3 and for all the routing products. I would say implementation period is over next two years. [Initiative: BharatNet Phase III Execution]”
“it is mainly to do with the operational readiness of BSNL for rolling out the network. They also had to be prepared with their sites [Risk (regulatory): HIGH]”
What Did Tejas Networks Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 333 Cr
YoY -82.5%QoQ +8.5%
Why: Revenue was driven largely by the sale of wireline products to Indian private operators and international customers.
Revenue shows a slight sequential recovery but remains significantly lower than the prior year's BSNL-driven peak.
EBITDA
INR -219 Cr
Margin -65.8%
Why: The loss includes provisions for warranty expenses amounting to 39.3 Cr based on potential fault rates and repair requirements.
EBIT remains deeply negative due to high R&D amortization and one-off warranty provisions.
PAT
INR -211 Cr
Why: The loss was primarily due to high operating expenses and warranty provisions despite a slight sequential revenue increase.
The company reported a net loss for the fourth consecutive quarter.
Other Highlights
• Order book grew 49% YoY to INR 1,514 Cr
• Received INR 69.96 Cr in PLI incentives for FY25
• Cash position stood at INR 505 Cr at end of Q4
What Sector Metrics Matter for Tejas Networks Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
INR 1,514 Cr
YoY +49%QoQ +14%
Why: Growth driven by BharatNet Phase III wins and international orders.
Inventory
INR 2,438 Cr
QoQ +3%
Why: Inventory held in anticipation of the BSNL 4G expansion order.
Trade Receivables
INR 3,258 Cr
QoQ -0.8%
Why: Slight improvement in collections during the quarter.
Net Debt
INR 3,531 Cr
QoQ +5.4%
Why: Increase in gross debt to INR 4,035 Cr partially offset by cash.
Cumulative Patents Filed
676
QoQ +63
Why: Continued R&D focus on 5G-Advanced and 6G technologies.
PLI Incentives Received (FY25)
INR 467 Cr
Why: Cumulative incentives received for meeting manufacturing targets.
India Revenue %
88%
QoQ +300 bps
Why: Driven by wireline sales to private operators and BharatNet shipments.
Warranty Provision
INR 39.3 Cr
QoQ +63.7%
Why: Determined based on potential fault rates and anticipated claims.
What Is Tejas Networks Ltd's Management Guidance?
Forward-looking targets from management
Management Tone: CAUTIOUS
How Fast Is Tejas Networks Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | -82% | +6% | Stable |
| PAT (Net Profit) | -193% | +80% | Stable |
| OPM | -36.0% | -4200 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Deep Value Stocks in Telecom Services
Frequently Asked Questions: Tejas Networks Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Tejas Networks Ltd's deep value score?
Tejas Networks Ltd has a deep value score of 10/100 (rated Very Weak). This score is calculated from three components
- Earnings Score: 0/40 — measures PAT growth momentum across quarters
- Underperformance Score: 0/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)
Is Tejas Networks Ltd fundamentally improving?
Tejas Networks Ltd's quarterly profit (PAT) growth trajectory
- Insufficient PAT data to assess improvement trend
Why is Tejas Networks Ltd underperforming despite good earnings?
Tejas Networks Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Tejas Networks Ltd?
Tejas Networks Ltd's earnings momentum is Monitoring.
- PAT YoY Growth: -193%
Is Tejas Networks Ltd undervalued?
Tejas Networks Ltd's valuation metrics
- Valuation data not available
What are the revenue and margin trends for Tejas Networks Ltd?
Tejas Networks Ltd's revenue and margin trends
- Revenue YoY: -82%
What is Tejas Networks Ltd's trailing twelve month (TTM) performance?
Tejas Networks Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹-909 Cr
- TTM PAT Growth: -80.0% YoY
- TTM Revenue: ₹1,000 Cr
- TTM Revenue Growth: -80.0% YoY
- TTM Operating Margin: -61.9%
What sector does Tejas Networks Ltd belong to?
Tejas Networks Ltd key facts
- Sector: Telecom Services
Is Tejas Networks Ltd a good deep value opportunity to study?
Tejas Networks Ltd shows limited deep value signals currently — score is 10/100 (Very Weak). Monitor for improvement.
- Value Score: 10/100 (Very Weak)
What is the bull and bear case for Tejas Networks Ltd?
Risk Factors (Bear Case)
- Margin pressure warning
Which other Telecom Services stocks are deep value opportunities?
Other deep value stocks in Telecom Services
- Sar Televenture Ltd — Score 52/100, Average
How does the Telecom Services sector look for deep value?
Telecom Services deep value sector overview
- 1 deep value stocks in this sector
- Average value score: 31/100
- Avg PAT acceleration: -39.2pp
- Top pick: Sar Televenture Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Tejas Networks Ltd?
Tejas Networks Ltd has 5 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins
- Management Or Ownership Change
- Regulatory Approval Or License Win
- Geographical Expansion
What are the key risks in Tejas Networks Ltd?
Tejas Networks Ltd has 3 key risks worth monitoring
- Delay in BSNL 4G expansion order receipt and execution
- Provisions for past service costs related to the new labor code
- Net forex loss included in finance costs
What did Tejas Networks Ltd's management say in the latest earnings call?
In Q4 FY26, Tejas Networks Ltd's management highlighted
- "from what we hear is that those are still in the works and the expansion order will come to us at the appropriate time for BSNL. [Previous BSNL 4G Ex..."
- "we were involved in some of the trials which were happening and those are moving towards commercial negotiations... expected in the coming weeks. [In..."
- "this particular order is for BharatNet Phase 3 and for all the routing products. I would say implementation period is over next two years. [Initiativ..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.