Why Tejas Networks Share Price is Falling

Quarterly results season is like a festival for the stock market. Excitement spreads across trading floors. Investors wait eagerly to unwrap the numbers like gifts. Some find pleasant surprises. Some face unexpected shocks.

Every company faces its moment of truth during this season. Investors quickly revalue companies based on fresh financial updates. Share prices react sharply as expectations meet reality.

One such company that recently came under focus is Tejas Networks. The company is known for designing and manufacturing telecom equipment. It plays a key role in India's digital and networking ambitions. However, the stock came under pressure after its latest results.

On Monday this week, Tejas Networks' share price slipped by 11% after it announced its Q4 numbers. The market reaction reflected concerns over its performance and future outlook.

Let's take a closer look at the company's Q4 results to understand why Tejas Networks share price is falling.

Weak Quarterly Results

Tejas Networks reported a net loss of Rs 720 million (m) in Q4 FY24 compared to a net profit of Rs 1,463 m in Q4 FY23.

The sharp reversal was mainly because the company had booked a one-time exceptional gain last year which did not recur this year. The absence of such gains, combined with weaker operational performance, pushed the bottom line into losses.

Revenue from operations rose by 4.8% year-on-year (YoY) to Rs 29.9 billion (bn). However, the growth was slower than market expectations. Delays in customer deliveries and project completions impacted revenue expansion during the quarter.

The earnings before interest, tax, depreciation and amortisation (EBITDA) loss stood at Rs 287 m during the quarter compared to an EBITDA gain of Rs 2,030 m in the same quarter last year.

The steep fall was primarily driven by higher expenses and lower margin realisations. Increased costs related to order execution and supply chain also weighed on profitability.

Total expenses climbed 65% year-on-year (YoY) to Rs 3.7 bn. Higher material costs, employee costs, and other expenses led to this surge. Rising input costs squeezed operating margins sharply.

Muted quarterly results, including a net loss, weak EBITDA, and cost pressures, triggered heavy selling pressure in the Tejas Networks stock.

What Next?

Tejas Networks is aiming for stronger growth in FY26 by expanding its product portfolio and tapping into larger markets. The company has enhanced its 5G capabilities with support across multiple bands and has added advanced 5G massive MIMO radios to its offerings.

It has also acquired a proven 4G/5G Core platform and strengthened its optical transport products with 800G and 1.2T DWDM systems. These upgrades are expected to improve its competitiveness in global telecom markets.

Additionally, the company has expanded its field of routers and FTTx solutions, positioning itself to benefit from rising broadband demand.

Domestic opportunities remain strong, with several large government projects in the pipeline. Private sector wins are also expected to continue, supported by its earlier success in supplying for BSNL's 4G rollout.

Tejas Networks is increasing its global sales efforts across the Americas, EMEA and ANZ regions. The company is targeting new customers through partnerships and direct sales channels. It plans to deepen its presence in emerging markets with affordable, high-capacity products.

Research and development is also a core focus area. Tejas Networks is investing in the next generation of wireless, optical and broadband access technologies. It aims to offer high-performance and cost-effective solutions for customers in emerging and developed markets.

How Tejas Networks Share Price has Performed Recently

In the past five days, Tejas Networks share price has tumbled 11.5%, including today's fall. In the last six months, the stock has crashed 39.1%.

In 2025, so far, its share price has nosedived 36%. Additionally, it has tumbled 31.7% in the last one year.

The stock touched its 52-week high of Rs 1,495.1 on 27 June 2024 and a 52-week low of Rs 647 on 17 March 2025.

About Tejas Networks

Tejas Networks is a telecommunications equipment company. It designs and manufactures high-performance networking products used by telecom service providers, internet service providers, utilities, defence, and government entities in over 75 countries.

Its portfolio includes wireless technologies (4G/5G based on 3GPP and O-RAN standards), fiber broadband (GPON, XGS-PON), carrier-grade optical transmission (DWDM, OTN), packet switching and routing (Ethernet, PTN, IP/MPLS), satellite communication, and network management solutions.

The company focuses heavily on research and development to build indigenous technologies tailored for global markets. It plays a key role in India's telecom manufacturing ecosystem under the Production Linked Incentive (PLI) scheme.

Tejas Networks also offers customised solutions for private networks, smart cities, and defence communication projects. Its expansion strategy includes targeting high-growth regions such as Latin America, Africa, and Southeast Asia.

For more details see the Tejas Networks fact sheet and quarterly results.

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