Why Tejas Networks Share Price Is Falling: Weak Earnings Visibility

Tejas Networks share price fell more than 10% today after the company reported weak quarterly numbers, reflecting continued pressure on revenue and profitability. The market reaction highlights investor concerns around execution delays and limited near-term clarity on earnings recovery.

Revenue and profit continues to remain under pressure

In Q3 FY26, Tejas Networks reported revenue from operations of ₹307 crore, compared with ₹2,642 crore in Q3 FY25, marking a sharp year-on-year decline of around 88%.

The company stated that revenue was impacted mainly due to delays in shipment and billing of large projects. A key reason was the deferral of a BSNL purchase order worth ₹1,526 crore, which pushed expected revenue recognition to later quarters. 

Such delays affect quarterly performance and reduce visibility on near-term earnings, which tends to weigh on investor sentiment.

Along with lower revenue, profitability remained under pressure. Tejas Networks reported a net loss after tax of ₹197 crore in Q3 FY26, compared with a profit of ₹166 crore in the same quarter last year.

Revenue and profitability at Tejas Networks have been under pressure for several quarters, and the latest results indicate that this trend has continued. With fixed costs remaining high and revenue levels weak, margins have stayed under strain. Markets generally remain cautious in such phases until there is consistency in earnings improvement.

Order book offers future visibility but timing remains key

As of December 31, 2025, Tejas Networks reported an order book of ₹1,329 crore, which provides some visibility for future revenue. However, investors are focused on how quickly these orders are executed and converted into billable revenue.

The company also reported inventory of around ₹2,363 crore, which it expects to ship over the coming quarters. Until this inventory is executed and recognised as revenue, quarterly financial performance is likely to remain uneven.

Balance sheet position

On the balance sheet front, Tejas Networks reported:
• Net debt of ₹3,349 crore
• Cash and cash equivalents of ₹537 crore

While net debt reduced sequentially, leverage remains elevated relative to current revenue levels, adding to investor caution during a period of weak cash inflows.

Operational updates during the quarter

Despite financial pressure, the company reported several operational developments during Q3 FY26. Tejas Networks won additional packages under BharatNet Phase-III, strengthening its position as a supplier of IP/MPLS routers. It was also selected as the 5G RAN supplier for a pilot deployment on the Delhi–Mumbai railway corridor and received expansion orders from private telecom operators and an ISP in Africa.

These developments point to long-term opportunities, but their impact on revenue is expected to be gradual.

Why the share price is falling

• The fall in Tejas Networks share price reflects a combination of factors. A sharp decline in quarterly revenue has raised concerns about near-term earnings visibility. 
• Continued net losses and weak profitability indicate that financial recovery is yet to take shape. Delays in execution of large telecom orders have further added to uncertainty, while limited clarity on when revenue will normalise has led investors to adopt a cautious stance.
• In such situations, markets typically wait for visible improvement in execution and earnings before reassessing the stock.

What investors may watch going forward

Going ahead, investors are likely to focus on progress in execution of large orders such as BSNL and BharatNet, as timely delivery and billing could improve revenue visibility. Sequential improvement in quarterly revenue will be closely tracked as a sign of recovery.

Trends in losses and cost control will also be monitored to assess operating efficiency. In addition, movement in net debt and cash flows will be important indicators of balance sheet stability.

Clear improvement across these areas could influence investor confidence and play a key role in determining how the stock performs in the coming quarters.

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