TEJASNET - Tejas Networks Limited Share Price

In the Q1 FY26 Earnings Conference Call held on July 14, 2025, Tejas Networks management provided a cautious yet optimistic outlook for the company's future. Key financial highlights included a net revenue of INR 202 crores for the quarter, significantly lower than the previous quarter's INR 1,907 crores, attributed primarily to delays in purchase orders and inventory shipments. The reported loss for Q1 was INR 194 crores, an increase from the loss of the prior quarter.

Management noted an order book of INR 1,241 crores, which increased from the previous quarter. They expect to receive an additional order worth approximately INR 1,500 crores for the deployment of over 18,000 sites in BSNL's 4G network shortly. In terms of revenue sources, 81% came from India and 19% from international markets, with the order book comprising 92% from India.

Major forward-looking points included:

1. Continued growth in data consumption and network investment globally, driven by digitalization and network modernization.
2. Expansion of the product portfolio, including advancements in 5G technologies and partnerships with NEC and Rakuten for a global outreach.
3. Engagements for 4G and 5G proof of concepts with several domestic and international operators, with expectations for business closures in the current year.
4. A strong focus on R&D, anticipated expansion in domestic opportunities, and entry into partnerships that enhance international market presence.

Management expressed confidence in future growth, underscoring ongoing investments in sales and product development to capitalize on evolving market demands.

Questions and Answers from Tejas Networks Q1 FY26 Earnings Call

1. Question: "Can you give some breakup on the India revenue? How much is that India Private and how much is the India Government revenue?" Answer: "We've stopped providing detailed breakups for India revenue because the clarity was lacking. Previously, India Government revenues represented around 16% and India Private about 65% of total revenue."

2. Question: "We've seen the quarter-on-quarter decline in employee costs. How should we look at the employee costs going ahead?" Answer: "The decline is mainly due to provision reversals from exits and adjustments in variable pay provisions. We expect employee costs to rise as we continue to invest in R&D and international sales."

3. Question: "How long should we see the 4G/5G proof of concept culminating into revenue?" Answer: "We are actively engaging in POCs with multiple customers, both domestically and internationally. We aim to close new business in 4G and 5G this year, bolstered by partnerships with NEC and Rakuten."

4. Question: "What does this pertain to allowance for expected credit loss of INR18 crores? Is this on BSNL or any other project?" Answer: "The expected credit loss provision of INR18 crores applies across our customer base. It's a general provisioning measure based on our metrics and accounting standards rather than linked to a specific customer."

5. Question: "Do you expect to receive the BSNL expansion order of INR1,526 crores this financial year?" Answer: "Yes, that's the expectation. We foresee the order being executed this financial year."

6. Question: "Is there a specific order size figure for the anticipated BharatNet orders?" Answer: "We don't provide exact order values per customer. However, we are participating as a supplier to system integrators who have won those larger orders."

7. Question: "What is the total order book right now? Any breakup for BSNL?" Answer: "Our current order book stands at INR1,241 crores and does not include BSNL orders. We're expecting an additional INR1,500 crores for over 18,000 sites."

8. Question: "Could you elaborate on the recent partnership with Rakuten?" Answer: "We're developing a joint solution that integrates Rakuten's CU/DU components with our radio units to offer to customers globally, enhancing our competitive positioning."

9. Question: "Will the NEC collaboration investment happen in this year only?" Answer: "Most of the investment will occur this year, although a small portion may extend into the next year."

10. Question: "Are we seeing engagement from the Ministry of Defence for project opportunities?" Answer: "We are engaged with the defence sector for upcoming opportunities, but currently, there is no major specific project to discuss."

These responses encapsulate the key information and figures discussed during the earnings call.