Tejas Networks Q2 FY27 Earnings Call Transcript Released

Tejas Networks Limited has released the transcript of its Q2 FY27 Earnings Conference Call, which was held on October 16, 2026. The call featured management including Mr. Arnob Roy (Managing Director and Chairman), Mr. AVS Prasad (Chief Financial Officer), Dr. Kumar N. Sivarajan (Chief Technology Officer), Mr. Preetham Uthaiah (Chief Operating Officer), and Mr. Sanjay Malik (Chief Strategy & Business Officer). The moderator was Mr. Aryan Tripathi from Emkay Global Financial Services Limited.

During the call, the management reported that for Q2 FY27, Tejas Networks achieved a revenue of ₹406 crore, a significant increase from ₹262 crore in Q2 FY26, representing a 55% year-on-year growth. For the first half of FY27 (H1 FY27), revenues stood at ₹808 crore, up approximately 74% year-on-year from ₹464 crore in H1 FY26. The company reported a loss after tax (PAT) of ₹207 crore for Q2 FY27, an improvement from a loss of ₹307 crore in Q2 FY26. The order book at the end of the quarter was ₹2,315 crore, up from ₹1,529 crore in Q1 FY27. India contributed 88% to revenue and 96% to the order book, largely due to the receipt of Letter of Intent (LOI) and subsequent Purchase Orders (POs) for BSNL's 4G network expansion, encompassing over 18,000 sites.

Shipments in Q2 FY27 were driven by optical IP and FTTx products for private operators and system integrators, alongside initial shipments for the BSNL expansion and initial shipments of its 5G solution to a South American customer. The company also filed 26 patents in Q2 FY27, bringing its global patent count to 748. The CFO highlighted a reduction in net working capital to ₹4,235 crore due to improved collections and non-recourse bill discounting. Inventory levels were at ₹2,314 crore, with expectations of significant utilization for the BSNL order. Net debt increased to ₹4,384 crore due to ongoing capex and operational costs.

Key business updates included significant progress on the BSNL 4G site order, initial shipments of the end-to-end 5G mobile network solution, and multiple Proof of Concept (POC) engagements in North America and Asia Pacific. The company is also in discussions with Tier 1 mobile network operators for custom 5G radio development. In the wireline segment, Tejas Networks secured an LOI for BharatNet and won a significant order for a pan-India OTN network for a Government of India Enterprise. POs were also received for GPON FTTx products, and a new Tier 1 pan-African telecom operator selected Tejas for optical equipment.

Corporate updates included the launch of a new logo with a Tata endorsement, winning the TEPC Export Excellence Award, and inaugurating a next-generation connectivity lab. The company demonstrated 6G sensing technology in partnership with Qualcomm at the India Mobile Congress (IMC). Future business drivers identified include 5G deployment in emerging markets, global 5G FWA subscriptions, domestic 4G network expansion, and AI driving 6G commercialization. Wireline drivers include AI data centers, enterprise connectivity, residential broadband, and modernization of utility networks.

Product focus areas include expanding the 5G radio access network portfolio, developing compact baseband units, investing in AI RAN, and integrated sensing and communication. For wireline, the focus is on expanding IP/MPLS routing, developing high-capacity low-latency access platforms, and investing in terabit per second backbone products. The company is also rolling out its AI-based network management solution, the Tejas Observability Platform (TOP).

Strategic focus areas include technology solution partnerships for international traction, expanding market share in private telcos, and addressing data center interconnect applications. Financially, the focus is on executing the BSNL order, reducing inventory and gross debt, increasing collections, and achieving quarterly positive EBITDA performance. The company sees strong business visibility and a path to profitability.

During the Q&A session, management addressed queries regarding BSNL payments, order book composition, international business traction, and the data center interconnect (DCI) stack. The company confirmed that significant collections from BSNL are expected in the current quarter and that a substantial portion of the BSNL order is not yet in the order book but is expected to be added as POs are received. Management also clarified their approach to the DCI market, focusing on interconnectivity between data centers and not directly partnering with GPU vendors. The company is also trialing its 700 MHz 5G network for railways and expects potential expansion based on trial results. Regarding the BSNL PO, it is expected to significantly reduce inventory and gross debt over the next few quarters. Tejas Networks has developed broadcast radio heads for D2M and is positioned as a broadcast radio provider to RFP winners. The company is also engaged in POC trials with various telcos globally, focusing on 5G and sometimes 4G in developing markets, and also on custom radio development for Tier 1 and Tier 2 operators. The collaboration with NEC involves licensing NEC's massive MIMO 5G radio technology and supplying it to NEC's and Tejas's customers.

The call concluded with management expressing optimism about the company's progress, particularly with the BSNL opportunity, which is expected to drive revenue growth, and reduce inventory, debt, and receivables, leading to improved financial performance.