Shares of Tejas Networks tumbled more than 7% in Monday’s trade, January 12, after the company reported weak financial performance for the December quarter (Q3FY26), marking its fourth consecutive quarterly loss.
The sharp sell-off came despite a sequential improvement in revenue. Tejas Networks reported Q3FY26 revenue of Rs 307 crore, up 17% sequentially from Rs 262 crore in the September quarter. However, on a year-on-year basis, revenue collapsed 88% from Rs 2,642 crore in Q3FY25, highlighting continued pressure on the company’s core business.
The company’s net loss for the December quarter stood at Rs 196.5 crore, narrower than the Rs 307 crore loss reported in Q2FY26. While the reduced loss offered some relief, investors remained concerned about the lack of a meaningful recovery in topline growth. EBITDA loss improved to Rs 134 crore from a loss of Rs 293.7 crore in the previous quarter, but was sharply lower than the Rs 371.3 crore EBITDA reported in the year-ago period.
A key overhang remains persistent delays in orders from Bharat Sanchar Nigam Limited (BSNL). While an advance purchase order has already been issued, the final purchase order is still pending, impacting execution and revenue recognition during the quarter. The combination of delayed BSNL orders and weak sales continues to weigh on Tejas Networks’ operational performance.
On the balance sheet front, Tejas Networks reported inventory of Rs 2,363 crore, largely unchanged from the previous quarter, which the company expects to convert into finished goods in the coming months. Trade receivables declined to Rs 3,284 crore from Rs 4,026 crore in Q2FY26, indicating some improvement in collections.
The company ended the quarter with cash of Rs 537 crore and gross debt of Rs 3,885 crore, resulting in net debt of Rs 3,349 crore, lower than the previous quarter due to reduced working capital requirements.
Overall, the steep year-on-year revenue decline, continued losses and uncertainty around large BSNL orders dampened investor sentiment, leading to the sharp fall in Tejas Networks shares despite some sequential improvement in key metrics.
