Tejas Networks shares tumbled 6.59% to ₹385.05 following the company's Q1 FY27 results announcement, representing a significant decline from the previous trading levels. According to market reports, the stock was trading at ₹385.05, down from its previous close at ₹494, even amid a positive broader market sentiment as Nifty 50 trades in the green. The market reaction reflects investor concerns over the continued pressure on profitability despite the sharp improvement in the topline, with the stock underperforming despite the company's strong revenue growth momentum.
According to reports from Business Standard, Tejas Networks reported a consolidated net loss of ₹202.24 crore in the quarter ended June 2026, compared to a net loss of ₹193.87 crore during the corresponding quarter of the previous year. The company's financial performance showed mixed results with significant revenue growth offset by operational challenges. As per latest reports, the consolidated net loss widened slightly to ₹202 crore from ₹194 crore year-on-year, even as the company demonstrated strong operational recovery. Investors are tracking the continued pressure on profitability despite the significant improvement in revenue performance.
As reported by Business Standard, the company's sales rose 99.10% to ₹402.16 crore in Q1 FY27, compared to ₹201.98 crore in the same quarter of the previous year. According to the latest data, consolidated revenue from operations grew 99.1% YoY to ₹402 crore compared to ₹202 crore in the same quarter last year, demonstrating the company's ability to expand its business operations significantly during the quarter. This substantial revenue growth demonstrates the company's ability to expand its business operations significantly during the quarter, though the market is focusing on the profitability challenges rather than the topline expansion.
According to the financial data reported by Business Standard, the company's operating profit margin (OPM) improved to -24.98% in Q1 FY27, compared to -67.17% in the corresponding quarter of the previous year. Additionally, PBDT (Profit Before Depreciation and Tax) decreased to ₹176.46 crore from ₹200.89 crore year-on-year, while PBT (Profit Before Tax) declined to ₹270.81 crore from ₹297.35 crore in the previous year's quarter. As per latest reports, EBITDA losses narrowed significantly to ₹100 crore from ₹136 crore year-on-year, showing incremental improvement in operational efficiency despite the widening net loss. The operational improvements are being overshadowed by the continued pressure on overall profitability.
According to the latest financial data, inventory stood at ₹2,358 crore in Q1 FY27, down 7.05% from ₹2,537 crore in the previous quarter, indicating improved working capital management. Trade receivables declined significantly by 24.82% to ₹2,232 crore in Q1 FY27 from ₹2,969 crore in Q1 FY26, reflecting better collection efficiency. Net debt improved to ₹4,277 crore in Q1 FY27 from ₹3,445 crore in Q1 FY26, while gross debt stood at ₹4,866 crore with cash and cash equivalents of ₹589 crore. As per CFO AVS Prasad, the company ended the quarter with an order book of ₹1,529 crore and achieved QoQ revenue growth of 21%.
During Q1 FY27, Tejas Networks secured significant business wins including supplying GPON ONTs to Tier-1 Indian telecom operators for nationwide network rollouts and was selected as a vendor for the communication network modernisation project of a large power utility. The company also secured an expansion order for 100G+ coherent DWDM equipment from a leading bandwidth wholesaler in Africa. MD and CEO Arnob Roy highlighted the company's first commercial win for an end-to-end 5G network deployment in South America, marking a significant milestone. The company further strengthened its innovation pipeline by filing 46 patents during the quarter, taking its cumulative global patent filings to 722.
