Tejas Networks shares surged 13% to ₹576.85 after the company received a Letter of Intent (LoI) from Tata Consultancy Services (TCS) for supplying equipment for BSNL's 4G mobile network. The stock opened at ₹538 and hit an intraday high of ₹576.85 on the NSE, representing a 12.85% surge from its previous close of ₹511.15. The stock gained 12.9% to hit an intraday high of ₹576.85 apiece on Friday, with the stock up 10% at ₹562.4 apiece at 10.20 am. The sharp market response came after Tejas Networks informed exchanges that TCS had issued the Letter of Intent (LoI) on August 27, 2026. The company has clarified that this is a Letter of Intent and not the final purchase order, with the detailed purchase order expected to be issued by TCS in due course. The stock has gained 13.7% in the past month and is up 24.3% this year, so far, marking its biggest single-day gain since May 7, 2026, when the stock surged 15.2%.
Tejas Networks has secured a significant contract from Tata Consultancy Services (TCS) worth ₹1,537 crore for supplying RAN equipment, accessories and installation materials. According to the company's latest exchange filing dated August 27, 2026, the Letter of Intent (LoI) covers 18,685 sites for BSNL's 4G mobile network. The latest order is linked to an expansion of BSNL's 4G network that has been in the works for more than a year. In May 2025, TCS received an add-on advance purchase order worth ₹2,903 crore from BSNL for planning, engineering, supply, installation, testing, commissioning and annual maintenance of its 4G network across 18,685 sites. Tejas Networks, which supplies the RAN equipment for the project, had subsequently said it expected to receive the corresponding purchase order worth around ₹1,526 crore. The size of the LoI is also substantial relative to Tejas Networks' existing order book, with the company ending the June quarter with an order book of ₹1,529 crore, meaning the latest ₹1,537-crore order by itself is slightly larger than the company's entire order backlog at the end of Q1 FY27. This single ₹1,537 crore LoI effectively doubles its order backlog from the previous quarter.
The company reported a consolidated net loss of ₹202.24 crore in Q1 FY27 compared to a net loss of ₹193.87 crore in the corresponding quarter last year. According to the latest financial results, consolidated revenue increased 99.10% year-on-year to ₹402.16 crore in the reporting quarter, against ₹201.98 crore in the same quarter of the previous fiscal year. The revenue growth was driven by international shipments of 5G radios and domestic shipments of 100G/400G optical and FTTx products. However, operating profit declined 16.12% to ₹194.71 crore from ₹219.04 crore in Q1 FY26, with operating margin contracting to -48.42% from 48.42% in the previous year. Total operating expenses increased 37.49% to ₹596.87 crore compared to ₹1,397.69 crore in Q1 FY26. At the operating level, EBITDA loss narrowed to ₹100 crore from ₹136 crore a year earlier, showing improved operational efficiency despite the overall net loss.
By the end of Q1 FY27, Tejas Networks' order book stood at ₹1,529 crore. As reported by the company, the closing order book in Q1 comprised 93% from India and 7% from international markets. The company is also awaiting an expansion order for 26,000 additional 4G sites using its RAN products on BSNL's pan-India network, against the current Letter of Intent received. Tejas Networks has been a key equipment supplier for BSNL's indigenous 4G rollout, with the company originally securing an order worth ₹7,492 crore for supplying 4G RAN equipment for roughly 100,000 BSNL sites. The company supplied base stations and radio infrastructure for the network, while TCS spearheaded the overall deployment in a consortium that also includes the Centre for Development of Telematics (C-DOT). The initial nationwide deployment covered more than 100,000 sites. The latest order is part of TCS's broader role in BSNL's indigenous 4G rollout, with TCS securing a ₹15,000-crore contract from BSNL in May 2023 to deploy an end-to-end indigenous 4G network in partnership with C-DOT. In August 2023, Tejas Networks received a ₹7,492 crore purchase order from TCS for 1 lakh BSNL 4G/5G sites, and the company completed the supply and shipment of equipment for over 1 lakh sites by May 2025.
The company's net debt stood at ₹4,277 crore at the end of Q1 FY27, comprising gross debt of ₹4,866 crore and cash of ₹589 crore. According to Harish Jujarey, AVP, head - technical equity research at Prithvi Finmart, the stock has seen a sharp spike after consolidating in a narrow range for the past few sessions, while holding above its 200-DMA, which is placed around the ₹470 level. "During this consolidation, the stock formed a double-bottom pattern and recently broke out of the short-term trendline. It has also moved above its 50-DMA, indicating improving positive momentum," he said. The short-term technical setup remains positive, and the stock could extend its rally towards ₹581 levels. And a sustained move above this level could open push the price towards the recent swing high levels of ₹640, the expert added. The stock's strong performance reflects investor confidence in the company's ability to execute large-scale network infrastructure projects and rebuild its revenue base following the completion of a large part of the initial BSNL rollout. The stock has been down 33% in the last three years, but recent developments suggest potential recovery momentum.
