Why Tejas Networks Share is Rising After ₹1,537 Crore BSNL 4G Order

Tejas Networks shares jumped as much as 12.8% to ₹576.85 on August 28, 2026, after the company announced a ₹1,537 crore business opportunity linked to BSNL’s 4G network expansion.

The size of the order explains the excitement. At ₹1,537 crore, it is slightly larger than Tejas Networks’ entire order book of ₹1,529 crore at the end of June 2026.

However, this is currently a Letter of Intent from Tata Consultancy Services, not a final purchase order directly from BSNL. The order strengthens Tejas Networks’ revenue visibility, but its long-term impact will depend on execution, profitability and cash collection.

What Order Has Tejas Networks Received?

Tejas Networks has received a Letter of Intent worth ₹1,537 crore from TCS for supplying Radio Access Network equipment, accessories and installation materials.

The equipment will be used across 18,685 sites under BSNL’s 4G network expansion.

TCS is the main system integrator responsible for executing BSNL’s wider 4G project. Tejas Networks is one of the key equipment suppliers within this project.

The distinction between a Letter of Intent and a purchase order is important. The LoI confirms TCS’s intention to place the order, but the detailed purchase order will contain the final delivery schedule, commercial terms and execution milestones.

Therefore, the ₹1,537 crore cannot be treated as immediate revenue. Tejas Networks will recognise revenue as it supplies the equipment and completes the required milestones.

Why Is the BSNL Order So Important for Tejas Networks?

The ₹1,537 crore LoI is slightly larger than Tejas Networks’ existing order book of ₹1,529 crore.

If the entire LoI value is added to the order book after the detailed purchase order, the company’s backlog could increase to around ₹3,066 crore. That would be nearly 2.8 times its FY26 revenue.

The new order alone is also equal to around 3.8 times Tejas Networks’ Q1 FY27 revenue of ₹402 crore and 1.4 times its full-year FY26 revenue of ₹1,103 crore.

This gives the company much-needed revenue visibility after a sharp slowdown in FY26. It also explains why investors reacted positively despite Tejas Networks continuing to report losses.

The Order Was Expected, But the Confirmation Still Matters

The BSNL expansion project was not completely new.

TCS had received an add-on advance purchase order worth ₹2,903.22 crore from BSNL in May 2025. The project covered planning, engineering, equipment supply, installation, testing, commissioning and maintenance across the same 18,685 sites.

Tejas Networks had also informed investors in its Q1 FY27 presentation that it was awaiting the BSNL 4G expansion order. The company had already built inventory that could be used for the project.

Therefore, the latest LoI does not create an entirely new opportunity. Instead, it reduces uncertainty around how much of the BSNL expansion project will come to Tejas Networks.

This is still important because there is a big difference between discussing a potential opportunity and receiving a formal Letter of Intent stating the expected order value.

Can the Order Revive Tejas Networks’ Revenue?

Tejas Networks’ recent financial performance shows how much its revenue can move depending on the execution of large projects.

The company reported revenue of ₹8,923 crore in FY25 when supplies for the initial BSNL 4G rollout were at their peak. Revenue then fell by nearly 88% to ₹1,103 crore in FY26 as those supplies slowed.

Tejas Networks also moved from a net profit of ₹447 crore in FY25 to a net loss of ₹909 crore in FY26.

Revenue showed signs of recovery in Q1 FY27, increasing 99% year-on-year to ₹402 crore. The improvement was supported by international 5G radio shipments and domestic optical and fibre broadband products.

However, the company still reported a net loss of ₹202 crore, compared with a loss of ₹194 crore in the corresponding quarter of the previous year.

The new BSNL order can support another phase of revenue growth. But the speed of recovery will depend on when the detailed purchase order is issued and how quickly equipment deliveries begin.

The Inventory Angle Investors Should Not Ignore

The biggest financial benefit may not come only from higher revenue. The order could also help Tejas Networks use the large inventory already sitting on its balance sheet.

The company had inventory worth ₹2,358 crore at the end of June 2026. That was more than twice its entire FY26 revenue.

Tejas Networks had already stated that a significant portion of this inventory would be used to execute the BSNL 4G add-on order. This suggests the company has been preparing for the project even before receiving the latest LoI.

As the equipment is supplied, inventory can be converted into revenue. If TCS makes payments on time, this can eventually release cash that is currently tied up in working capital.

However, delays in the final purchase order, equipment delivery or customer acceptance could keep this capital blocked for longer.

A Large Order Does Not Automatically Mean Higher Profits

The new order solves one major problem for Tejas Networks by improving revenue visibility. But profitability and cash flow remain concerns.

At the end of Q1 FY27, the company had net working capital of ₹4,478 crore. This included ₹2,358 crore of inventory and ₹2,232 crore of net trade receivables.

Net debt increased from ₹3,531 crore in March 2026 to ₹4,277 crore in June 2026. Gross debt stood at ₹4,866 crore, while the company had cash and cash equivalents of ₹589 crore.

The financial impact of the BSNL order will therefore depend on three factors.

First, Tejas Networks must execute the order without further delays. Second, it must earn sufficient margins on the equipment supplied. Third, it must collect payments quickly enough to reduce inventory, receivables and debt.

If revenue rises but payments remain stuck in receivables, the order may improve the income statement without immediately improving cash flow.

BSNL Dependence Remains a Risk

The order also increases Tejas Networks’ exposure to large domestic projects.

Even before the latest LoI, India accounted for 93% of the company’s order book at the end of Q1 FY27. Large BSNL orders can support rapid revenue growth, but they can also create volatility when projects are completed or delayed.

This was visible between FY25 and FY26 when revenue dropped sharply after the initial BSNL rollout slowed.

Tejas Networks is trying to reduce this dependence by expanding internationally. It secured its first commercial order for an end-to-end 5G deployment in South America and has also supplied 5G radios through its partnership with NEC.

These international wins are still smaller than the BSNL opportunity. Their ability to develop into a steady revenue stream will be important for reducing dependence on a few large domestic customers.

What Should Tejas Networks Investors Track Next?

The first milestone is the conversion of the Letter of Intent into a detailed purchase order. This should provide more clarity on delivery schedules and execution terms.

Investors should then track how much of the order is converted into quarterly revenue and whether higher sales help reduce operating losses.

Inventory, receivables and net debt will be equally important. A decline in these numbers would show that the order is not only generating reported revenue but also improving cash flow.

Finally, international order wins should be monitored. A more diversified order book can make Tejas Networks’ revenue less dependent on the timing of BSNL projects.

What Is the Outlook for Tejas Networks Share?

The positive market reaction is understandable. The ₹1,537 crore LoI is larger than Tejas Networks’ existing order book and can support a significant recovery in revenue.

It could also help the company monetise part of its ₹2,358 crore inventory, which has kept a large amount of capital blocked on the balance sheet.

However, the BSNL expansion opportunity was already known, the detailed purchase order is still pending and Tejas Networks continues to report losses with rising debt.

The LoI improves the company’s revenue outlook. But the stronger long-term signal will come when Tejas Networks converts the order into profitable revenue, collects the cash and starts reducing its working-capital and debt burden.