Tejas Networks Q2 FY27 results: net loss narrows to ₹206.94 crore, revenue up 54.9%

How did Tejas Networks perform in Q2 FY27?

Tejas Networks reported consolidated revenue of ₹405.68 crore in Q2 FY27, up ₹143.86 crore or 54.9% from ₹261.82 crore in Q2 FY26 and ₹3.52 crore or 0.9% from ₹402.16 crore in Q1 FY27. The EBITDA loss narrowed by ₹187.06 crore to ₹106.64 crore from ₹293.70 crore a year earlier, while the margin improved by 85.9 percentage points to -26.3% from -112.2%.

The company reported a net loss of ₹206.94 crore in Q2 FY27, compared with a net loss of ₹307.13 crore in Q2 FY26 and ₹202.24 crore in Q1 FY27. Basic EPS was -₹11.62, compared with -₹17.38 and -₹11.37, respectively. On a standalone basis, revenue was ₹404.91 crore and the net loss was ₹207.77 crore.

What changed in Tejas Networks' costs and profit?

Total expenses fell by ₹50.49 crore, or 6.8%, to ₹690.33 crore from ₹740.82 crore in Q2 FY26. Cost of materials was lower by ₹8.44 crore, depreciation by ₹9.50 crore and other expenses by ₹34.90 crore, while employee cost rose by ₹10.79 crore and finance costs by ₹2.21 crore. There was no exceptional item.

Other income rose by ₹1.76 crore to ₹7.77 crore from ₹6.01 crore in Q2 FY26, while tax expense fell by ₹95.92 crore to ₹69.94 crore from ₹165.86 crore. The filing did not state reasons for the year-on-year changes in individual cost lines or the reduction in the net loss.

Against Q1 FY27, total expenses rose by ₹8.39 crore to ₹690.33 crore, mainly reflecting a ₹105.72 crore increase in cost of materials and a ₹16.49 crore increase in other expenses. Other income fell by ₹1.20 crore and tax expense rose by ₹1.37 crore, while the net loss widened by ₹4.70 crore.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose by ₹344.04 crore, or 74.2%, to ₹807.84 crore from ₹463.8 crore in H1 FY26. Total income increased by ₹345.22 crore, or 72.0%, to ₹824.58 crore from ₹479.36 crore.

The H1 FY27 loss before tax was ₹547.69 crore, compared with a loss of ₹770.34 crore in H1 FY26. The net loss narrowed by ₹91.82 crore to ₹409.18 crore from ₹501.0 crore, while basic EPS was -₹23.0 compared with -₹28.37 in the year-earlier period.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹8,437.98 crore, down from ₹9,402.73 crore at 31 March 2026, while total equity was ₹2,527.6 crore against ₹2,930.87 crore. Borrowings rose to ₹4,835.35 crore from ₹4,035.47 crore, and cash was ₹109.76 crore against ₹102.68 crore.

Inventories were ₹2,314.4 crore, down from ₹2,438.19 crore, while trade receivables fell to ₹2,144.97 crore from ₹3,256.45 crore. Trade payables were ₹442.22 crore against ₹477.95 crore at the previous balance-sheet date. In H1 FY27, operating cash flow was -₹311.93 crore, compared with -₹510.32 crore in H1 FY26; investing cash flow was -₹321.67 crore against -₹397.87 crore, and financing cash flow was ₹641.08 crore against ₹631.6 crore.

How has Tejas Networks done over the last 8 quarters?

Revenue reached its highest level in the period at ₹2,642.24 crore in Q3 FY25 and its lowest at ₹201.98 crore in Q1 FY26. It has since risen for two quarters, reaching ₹306.79 crore in Q3 FY26, ₹332.69 crore in Q4 FY26, ₹402.16 crore in Q1 FY27 and ₹405.68 crore in Q2 FY27.

The EBITDA margin bottomed at -112.2% in Q2 FY26 and improved to -43.8% in Q3 FY26, -35.5% in Q4 FY26 and -25.0% in Q1 FY27 before easing to -26.3% in Q2 FY27. The net loss narrowed from ₹307.13 crore in Q2 FY26 to ₹196.55 crore in Q3 FY26 and ₹202.24 crore in Q1 FY27, before widening to ₹206.94 crore in Q2 FY27.

What else did the company announce?

Tejas Networks filed the earnings call presentation for Q2 FY27 on 16 October 2026. It reported an order book of ₹2,315 crore and highlighted the LOI for 18,685 BSNL 4G expansion sites, initial shipments for that order and initial shipments of an end-to-end 5G solution to an international customer in South America.

The same-day presentation also reported 26 patents filed in Q2, taking the cumulative global patent count to 748, and the launch of the company’s new logo with the Tata endorsement mark. The filing did not report a dividend, fund raise or appointment.

What did Tejas Networks' management say?

Management said the BSNL expansion order would provide momentum to revenue and support reductions in inventory, debt and receivables. The company expects inventory to decline significantly over the next few quarters as the order ships and gross debt to fall as collections are made against completed BSNL milestones.

Management provided no formal quantitative revenue or EBITDA guidance. It said there was a visible path to profitability in the upcoming years and that quarterly positive EBITDA was a major focus, while the remaining purchase orders for the ₹1,500 crore BSNL order were expected by the end of Q3 FY27. Management also said global 5G FWA subscriptions were expected to triple and reach close to 90 million by 2030.

Management highlighted international proof-of-concept engagements in the Americas and Asia Pacific, the first end-to-end 5G shipment to a South American customer and 6G sensing demonstrations with Qualcomm. The call also identified execution of the BSNL order, the continuing negative EBITDA position and the early stage of international commercial traction as risks.

How did Tejas Networks shares react?

After the filing appeared, the stock fell 0.9% within 5 minutes, 1.6% within 15 minutes and 2.2% within 30 minutes. On the reaction day it fell 5.7% from the previous close; by the next day’s close the move from that pre-results close was -10.0%, and by five sessions it was -12.9%.

The industry median fell 3.0% on the reaction day, 5.7% by the next day’s close and 7.2% by five sessions. Tejas Networks underperformed the industry median by 2.6 percentage points on the reaction day, 4.4 percentage points by the next day and 5.7 percentage points by five sessions. Earlier reaction-day moves were -3.7% on 27 July 2026, -3.9% on 15 April 2026, -9.2% on 9 January 2026 and -8.5% on 17 October 2025.