Shares of Tejas Networks jumped up to 12.1% on Friday, hitting an intraday high of ₹415.95 on the NSE, marking the second consecutive day of gains following its contract win to supply 5G Massive MIMO radios. According to Upstox, the stock's performance reflects strong investor confidence in the company's strategic expansion into next-generation telecom infrastructure. The significant price movement demonstrates sustained market enthusiasm for the company's enhanced global telecom presence through this partnership. The stock has gained more than 25% in the past week and 38% over the month, though it remains 9% down on a year-to-date basis. Latest reports indicate the stock climbed approximately 15% in intraday trade to ₹429.15, propelled by substantial trading volumes, following a 35% increase over the preceding two trading days.
In a regulatory filing dated February 26, Tejas Networks announced it has signed an agreement with NEC Corporation to manufacture and supply 5G Massive MIMO radios. As reported by Upstox, Arnob Roy, Chief Operating Officer and Executive Director of Tejas Networks, stated that the partnership will accelerate wireless innovation by leveraging the companies' respective expertise in carrier-class product development for global telecom operators. Masayuki Kayahara, Corporate Senior Vice President of the Global Network Division at NEC Corporation, noted that the deal furthers NEC's collaboration with Tejas Networks on 5G massive MIMO radio and achieves supply-chain diversification, helping mitigate risks to customers by building a resilient, flexible globalized ecosystem. The collaboration is positioned not merely as an expansion of production capacity but as a strategic move to bolster supply chain diversification and foster innovation in next-generation 5G-Advanced solutions.
Massive MIMO (Multiple Input Multiple Output) is a critical 5G technology that deploys dozens or even hundreds of antennas at base stations to transmit and receive data simultaneously. According to The Economic Times, this technology significantly improves network capacity, spectral efficiency and coverage by directing focused, narrow beams to users instead of broadcasting signals broadly. The partnership will accelerate wireless innovation by leveraging both companies' expertise in carrier-class product development for global telecom operators. As per Upstox, the collaboration aims to co-create leading-edge 5G/5G-Advanced solutions that meet the evolving needs of customers worldwide. The management anticipates leveraging this partnership to replicate success across emerging and established global mobile networks.
Beyond the NEC alliance, Tejas Networks continues to secure key domestic projects including its selection as a 5G RAN supplier for a pilot on the Kavach project along the Delhi-Mumbai railway corridor and multiple private 5G deployments for industrial applications in India. The company has also solidified its position as a leading supplier for BharatNet, securing the maximum number of announced IP/MPLS router packages, and has received expansion orders for WDM and GPON equipment from major Indian telcos. The long-term outlook remains positive, underpinned by robust demand for connectivity driven by rapid technology transitions and escalating data consumption, significantly influenced by AI applications. Investments in AI data centers are creating immense connectivity requirements, boosting demand for the company's optical products. The broader Indian telecom equipment market is projected for robust growth, with estimates suggesting it could reach USD 49.7 billion by FY2032, exhibiting a CAGR of 10.41% from FY2025 to FY2032.
In a separate regulatory filing dated February 18, Tejas Networks received ₹69.97 crore from the Ministry of Communications, Department of Telecommunications under the Production Linked Incentive Scheme for Telecom and Networking Products. According to Upstox, this amount represents the balance 15% of eligible incentive for FY 2024-2025. However, the company reported a consolidated net loss of ₹196.55 crore for Q3 FY26, marking the second consecutive quarter of losses, mainly due to lower sales including the deferment of a purchase order from state-owned BSNL. Revenue from operations plunged 88.89% to ₹306.79 crore for Q3 compared to ₹2,642.24 crore in December FY25 quarter, though it grew 17% sequentially from ₹261.82 crore in Q2 FY26. Despite the recent stock surge, the company's Price-to-Earnings (P/E) ratio is negative, reflecting current unprofitability on a trailing twelve-month basis, though forward-looking expectations imply a high P/E.
Tejas Networks manufactures a comprehensive mobility product portfolio, including 4G and 5G Radio Access Network (RAN) solutions such as high-capacity 32TR and 64TR Massive MIMO radios compliant with 3GPP and O-RAN standards. As reported by The Economic Times, the stock trades at a Price-to-Sales (P/S) ratio of 1.53 and a Price-to-Book (P/B) ratio of 1.71. The company has a total market capitalisation of ₹7,548 crore as of February 27, 2026. Foreign Institutional Investors (FIIs) trimmed their stake marginally from 6.24% to 5.95% in the December 2025 quarter, while mutual funds slightly increased their holdings from 3.95% to 3.96%. Despite the recent stock surge, the company carries a considerable debt burden of approximately ₹3,269 crore and faces challenges with high debtors recorded at 182 days and inventory management issues.
From a technical perspective, according to Trendlyne data cited by The Economic Times, the stock's 14-day Relative Strength Index (RSI) stands at 59.2. The stock is currently trading above five of its eight simple moving averages (SMAs), indicating a bullish trend. Sanjay Malik, Chief Strategy and Business Officer of Tejas Networks, expressed confidence in replicating this success across 4G and 5G networks in both emerging and developed markets. The company aims to co-develop advanced 5G and 5G-Advanced solutions to meet evolving customer needs worldwide, with the stock having zoomed over 40% from its 52-week low of ₹294 touched on January 27, 2026. Despite inherent risks including substantial delays in receiving large purchase orders and competitive pressures in the global 5G RAN market where top suppliers held 96% market share in late 2025, analysts suggest a price target of ₹780, implying a potential upside of over 110%, though consensus rating remains 'Neutral' with several analyst reports indicating 'Strong Sell' ratings.
