Tejas Networks Limited Earnings Summary — Q1 FY2027
Tejas Networks Reports Q1 FY2027 Results Amid Integration with Tata Ecosystem
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 5 consecutive quarters.
- Revenue of ₹402 Cr is 99.1% higher year-on-year.
- Revenue has compounded at -41.2% annualised over the last 10 quarters.
- Net profit of ₹-202 Cr is 4.3% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Operating margin stands at -25.0% in Q1 FY2027.
- Operating margin expanded by 4221 bps year-on-year.
- Over the last two years operating margin has contracted by 3968 bps.
- PBT margin is -67.3%.
- Expense growth of 48.8% remained below revenue growth of 99.1%.
- Operating profit of ₹-100 Cr is 26.0% higher year-on-year.
- Operating leverage continues to improve.
- 2 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 56/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 402 | 333 | 307 | 262 | 202 | 1,907 | 2,642 | 2,811 | 1,563 | 1,327 |
| Expenses | Improving | 503 | 451 | 441 | 556 | 338 | 1,785 | 2,271 | 2,277 | 1,333 | 1,018 |
| Operating Profit | Volatile | -100 | -118 | -134 | -294 | -136 | 122 | 372 | 535 | 230 | 309 |
| Operating Margin | Volatile | -25.0% | -35.5% | -43.8% | -112.2% | -67.2% | 6.4% | 14.1% | 19.0% | 14.7% | 23.3% |
| Other Income | Accelerating | 9 | 10 | 8 | 6 | 10 | 8 | 14 | 11 | 13 | 12 |
| Interest | Strong Uptrend | 85 | 72 | 72 | 84 | 75 | 71 | 63 | 61 | 57 | 31 |
| Depreciation | Improving | 94 | 101 | 104 | 101 | 96 | 103 | 111 | 74 | 65 | 58 |
| Profit Before Tax | Volatile | -271 | -281 | -303 | -473 | -297 | -45 | 211 | 411 | 122 | 233 |
| Tax | Volatile | -69 | -69 | -106 | -166 | -103 | 27 | 46 | 135 | 44 | 86 |
| Net Profit | Volatile | -202 | -211 | -197 | -307 | -194 | -72 | 166 | 275 | 77 | 147 |
| Net Margin | Volatile | -50.3% | -63.5% | -64.1% | -117.3% | -96.0% | -3.8% | 6.3% | 9.8% | 5.0% | 11.1% |
Key Takeaways
- Tejas Networks is undergoing a major structural transformation following its acquisition by the Tata Group through Panatone Finvest.
- The company's primary growth driver remains the massive 4G/5G deployment for BSNL, leveraging synergies with TCS.
- Financial performance remains volatile with a significant net loss reported in the preceding full fiscal year (FY26).
- Working capital management is a critical concern, with the cycle reaching an extreme 2,010 days in recent periods.
- Debt levels have increased significantly to over ₹4,100 Cr to fund massive-scale execution requirements.
- The business is shifting from a niche R&D-focused firm to a high-volume hardware execution engine for the Tata ecosystem.
Management Guidance
Management is focused on deep integration within the Tata electronics ecosystem and professionalizing leadership to handle large-scale telecom infrastructure contracts.
Sentiment Shift
Stable
While structural backing from Tata Group provides long-term stability, immediate operational volatility and high debt levels maintain a neutral outlook.
Outlook
The outlook depends on successful execution of the BSNL rollout and management's ability to normalize working capital and interest costs, which have recently weighed heavily on the bottom line.
From the Annual Report (Key Quotes)
“Transitioning from a niche R&D shop to a massive-scale execution engine within the Tata electronics ecosystem.”
“Inherent cyclicality of telecom CAPEX and high inventory needs remain fundamental challenges.”
“The backing of Tata Sons provides immense balance sheet credibility and access to larger contracts.”
Official Quarterly Documents
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This summary is AI-generated from Tejas Networks Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.