Tejas Networks Q2 FY27 Revenue Grows To ₹406 Crore; Order Book Reaches ₹2,315 Crore

Market snapshot: Tejas Networks reported a YoY revenue growth to ₹406 crore for Q2 FY27, up from ₹262 crore in Q2 FY26. Net loss for the quarter narrowed to ₹207 crore compared to a loss of ₹307 crore in the previous year's corresponding quarter. The company secured a Letter of Intent for over 18,000 4G sites for BSNL, expanding its order book to ₹2,315 crore.

Data Snapshot

• Q2 FY27 Revenue from operations stood at ₹406 crore, up from ₹262 crore in Q2 FY26.
• Net loss for Q2 FY27 narrowed to ₹207 crore from ₹307 crore in Q2 FY26.
• Order book increased to ₹2,315 crore at the end of Q2 FY27 from ₹1,529 crore in Q1 FY27.
• Secured Letter of Intent for over 18,000 4G sites for BSNL 4G network expansion.

What's Changed

• Revenue increased by ≈55% YoY (derived: ₹406 cr vs ₹262 cr).
• Net loss reduced by ≈33% YoY (derived: -₹207 cr vs -₹307 cr).
• Order book expanded by ≈51% QoQ (derived: ₹2,315 cr vs ₹1,529 cr).

Key Takeaways

• Operational top-line expansion continues driven by product shipments across Optical, IP, and FTTx lines.
• Receipt of an LOI for 18,000+ BSNL 4G sites strengthens the domestic order pipeline.
• Bottom-line profitability remains constrained by net operational losses, though quarterly losses narrowed.

SAHI Perspective

Tejas Networks demonstrates top-line recovery supported by domestic infrastructure programs and commercial product shipments. While net loss reduced to ₹207 crore, achieving bottom-line breakeven will require sustained execution velocity and cost discipline across order delivery cycles.

Market Implications

The expansion of the order book to ₹2,315 crore provides medium-term revenue visibility for domestic telecom hardware. Market performance will depend on converted shipment rates and margin expansion.

Trading Signals

Market Bias: Neutral

Revenue growth of ≈55% YoY and order book expansion to ₹2,315 crore are counterbalanced by ongoing net losses of ₹207 crore in Q2 FY27.

Overweight: Telecom Equipment

Trigger Factors:

• Execution speed of 18,000+ BSNL 4G site deployment
• Quarterly EBITDA margin progression and net profit breakeven trajectory

Time Horizon: Medium-term (3-12 months)

Industry Context

India's homegrown telecom equipment sector continues to be driven by national network expansion projects and local equipment procurement initiatives.

Key Risks to Watch

• Persistent quarterly net losses impacting balance sheet working capital
• Potential execution delays in large-scale network site deployments
• Concentration risk in domestic telecom service provider order flows

Recent Developments

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Closing Insight

Timely execution on major contracts like BSNL will remain crucial to translating order book expansion into bottom-line profitability.

High Performance Trading with SAHI.