Tejas Networks Shares Slide Over 5% Pre-Open After Q3 FY26 Losses, Weak Nine-Month Performance

Mumbai, January 12, 2026: Shares of Tejas Networks Limited (BSE: 540595 | NSE: TEJASNET) came under sharp selling pressure in Monday’s pre-open session, with the stock indicated to open at ₹395.70, down ₹21 or 5.04% from its previous close of ₹416.70. The weakness follows the company’s disclosure of its unaudited financial results for the quarter and nine months ended December 31, 2025, which showed a steep year-on-year contraction in revenue and continued losses.

Pre-Open Snapshot and Market Context​

In pre-open trade, Tejas Networks touched its 52-week low of ₹395.70, underscoring the market’s cautious response to the latest earnings. The stock is now significantly off its 52-week high of ₹1,150, reflecting sustained concerns around profitability, execution, and order inflows.
At current levels, the company’s trailing twelve-month earnings per share remain negative, with standalone and consolidated EPS at minus ₹39.48 and minus ₹78.88 respectively, highlighting the pressure on margins and earnings visibility.

Q3 FY26 Financial Performance: Revenue Slumps, Losses Deepen​

For the third quarter of FY26, Tejas Networks reported net revenue of ₹307 crore, a sharp decline from ₹2,642 crore recorded in the corresponding quarter last year. The company posted a loss before tax of ₹303 crore in Q3 FY26, compared with a profit before tax of ₹211 crore in Q3 FY25. Net loss for the quarter stood at ₹197 crore, versus a net profit of ₹166 crore a year earlier.

Q3 Financial Comparison (₹ crore)​

The sharp year-on-year reversal was driven primarily by a high base effect and lower execution during the quarter, following strong deliveries in the previous year.

Nine-Month FY26 Numbers Remain Under Pressure​

On a nine-month basis, the performance remained subdued. Net revenue for the nine months ended December 31, 2025 stood at ₹771 crore, compared with ₹7,016 crore in the same period last year. The company reported a loss before tax of ₹1,073 crore for 9M FY26, against a profit before tax of ₹743 crore in 9M FY25. Net loss for the nine-month period widened to ₹698 crore, compared with a profit of ₹518 crore in the corresponding period last year.

Nine-Month Financial Comparison (₹ crore)​

Management Commentary: Order Book Remains Key Focus​

Commenting on the quarterly performance, the company’s management highlighted that Q3 FY26 revenue was largely driven by sales of wireline products to Indian and international customers. During the quarter, Tejas Networks participated in multiple field trials for its wireless products across domestic and overseas markets, with commercial negotiations expected to conclude in the coming months.
The company also reported that it ended Q3 FY26 with an order book of ₹1,329 crore. Net debt stood at ₹3,349 crore at the end of the quarter, down from ₹3,738 crore in Q2 FY26, mainly due to lower working capital requirements, partly offset by capital expenditure. Gross debt was reported at ₹3,885 crore, with cash and cash equivalents of ₹537 crore.

Operational Highlights During the Quarter​

During Q3 FY26, Tejas Networks reported several operational developments, including:

• Winning additional packages under the BharatNet Phase-III programme, where it remains a key supplier of IP/MPLS routers.
• Selection as a 5G RAN supplier for a section of the Delhi-Mumbai railway corridor under a Kavach pilot project.
• Receipt of expansion orders for DWDM and GPON OLT equipment from leading private telecom operators in India.
• Securing a DWDM backbone buildout order from a broadband ISP in Africa and a network transformation project in Southeast Asia.

About the Company​

Tejas Networks Limited is an India-based telecom equipment manufacturer engaged in the design and production of high-performance wireline and wireless networking products for telecom service providers, internet service providers, utilities, defence, and government customers across more than 75 countries. The company is part of the Tata Group, with Panatone Finvest Limited, a subsidiary of Tata Sons Private Limited, as its majority shareholder.

Source: