Tejas Networks Limited has released the transcript of its Q3 FY26 Earnings Conference Call, which was held on January 09, 2026. The call featured management including Mr. Arno b Roy (Executive Director and COO), Mr. Sumit Dhingra (CFO), Dr. Kumar N. Sivarajan (CTO), and Mr. Sanjay Malik (Chief Strategy and Business Officer), with Mr. Mohit Mishra from ICICI Securities moderating.

During the call, Mr. Arno b Roy reported that Q3 FY26 revenue stood at ₹307 crore, primarily driven by wireline product sales to Indian private operators and international customers. He also noted multiple ongoing trials for wireless products in both Indian and international markets, with several progressing to the commercial negotiation stage and expected to close in the coming months.

Mr. Sumit Dhingra provided a financial overview, stating that revenue grew by approximately 17% to ₹307 crore from ₹262 crore in the previous quarter. The Profit After Tax (PAT) for the quarter was negative ₹197 crore. The order book at the end of the quarter was ₹1,329 crore, up from ₹1,204 crore in the previous quarter. Revenue was split with approximately 85% from Indian customers and 15% from international customers, while the order book was predominantly from Indian customers at 92%. Negative EBIT for the quarter was ₹239 crore, an improvement from a negative ₹394 crore in the prior quarter. Expenses included provisions for past service costs related to gratuity and compensated absences due to the new labor code, and warranty expenses of ₹24 crore. Inventory remained stable at ₹2,363 crore, while trade receivables decreased to ₹3,284 crore from ₹4,026 crore. Net debt reduced to ₹3,349 crore from ₹3,738 crore, primarily due to lower working capital.

Updates on the wireless business highlighted increased international engagements for 4G and 5G RAN equipment, with multiple POCs moving to commercial negotiation. The company was selected as a 5G RAN supplier for a pilot on the Kavach project for the Delhi-Mumbai railway corridor. Wins for private 5G deployments in India for ports and mines were also mentioned. A delay was noted in the receipt of the BSNL 4G add-on PO for 18,000 sites, with the order expected at an appropriate time.

For the wireline business, Tejas Networks secured additional packages for BharatNet, becoming one of the largest suppliers of IP/MPLS routers. Expansion orders were received from leading Indian private telcos for WDM and GPON equipment. Significant international wins included a WDM backbone network for a broadband ISP in Africa and a network transformation project for MPLS-TP products for a power sector company in Southeast Asia. The company also achieved its first win in a sovereign data center networking application in India for its switching products.

Other updates included receiving the Excellence Award for its converged broadband product, ₹85 crore in PLI incentives for Q4 FY25 (cumulatively ₹397 crore for FY25), and filing 26 patents in Q3, bringing the cumulative global filings to 613, with 370 granted.

Management expressed a positive long-term outlook, driven by technology transitions and data growth, particularly from AI applications. Investments in AI data centers are fueling demand for optical products. The company sees traction for new products in India and internationally, with wireless products leading international engagements in Europe, Latin America, and Africa. Partnerships with NEC and Rakuten are also contributing to international business expansion.

During the Q&A, concerns were raised about the path to profitability and the significant losses reported. Management explained that investments in R&D, products, and expanding the portfolio, especially for wireless products, have been substantial. The path to profitability is expected to materialize as the international business scales up. The large inventory was attributed to procurement for the BSNL 4G add-on order, which has experienced delays. Management is focused on improving working capital cycles and inventory management, with an increased share from private and international customers expected to help.

Regarding the BSNL 4G expansion order delay, it was attributed to the operational readiness of BSNL and site preparedness, not issues with Tejas Networks' products or system integrators like TCS.

The company is actively working on appointing a new CEO, with the board actively engaged in the process. Regarding the BharatNet Phase 3 order, it involves deploying over 50,000 routers over the next two years, with implementation of the backbone connecting blocks. The last mile to villages will be a separate part of the project.

In terms of financial runway, management stated that while cost optimization efforts are ongoing, significant costs are related to product development investments. There is currently no proposal for a fundraise being discussed at the Board level. The company expects margin expansion, particularly from international business, to improve profitability and reduce the revenue required for break-even.