India's telecom equipment market is set to double from ₹25 billion in FY25 to ₹50 billion by FY32, according to a recent KPMG report. The opportunity extends beyond expanding telecom networks as India strengthens its position as a manufacturing hub for 5G equipment. At India Mobile Congress 2026, Ericsson announced that its Indian manufacturing ecosystem had produced over 15,000 antennas and 25 million components since July 2025, with India-made antennas being exported to Europe and global markets. This growth phase is supported by the $2.5 trillion Engineering and R&D (ER&D) market opportunity, where global ER&D spending is expected to rise from $1.5 trillion in 2024 to $2.5 trillion by 2030, growing at about 8.9% annually.
HFCL has demonstrated strong commercial traction in 5G equipment manufacturing, delivering over 8 lakh indigenously developed 5G fixed wireless access (FWA) devices to a leading Indian telecom operator in FY26. The company also manufactured approximately 17,000 IP/MPLS routers designed for 5G backhaul networks, supporting broadband infrastructure projects including BharatNet. Exports contributed 41.36% of FY26 revenue, compared with 12.2% in FY25, while the company's total order book reached ₹26,665 crore by June 2026. During Q2 FY27, HFCL secured a ₹2,329 crore overseas optical fibre cable agreement and approved additional capital expenditure of ₹820 crore, taking planned manufacturing investments to ₹1,800 crore. In FY26, HFCL's consolidated revenue increased 21.77% YoY to ₹4,949.3 crore with net profit rising 90.14% YoY to ₹329.44 crore.
Tejas Networks has secured significant international 5G orders despite facing financial challenges. The company reported 5G radio shipments to Europe through its NEC partnership and secured its first end-to-end 5G network order in South America, covering radio, baseband and core equipment. During Q2 FY27, Tejas received a ₹1,537 crore letter of intent from TCS for equipment covering 18,685 BSNL 4G sites. However, FY26 consolidated revenue declined 87.6% YoY to ₹1,103.3 crore with net profit falling 303.5% YoY to a loss of ₹908.9 crore against a profit of ₹446.5 crore in FY25. The decline followed the completion of major BSNL equipment supplies and delays in new project awards, with net debt of ₹3,531 crore remaining a concern.
Dixon Technologies is expanding its 5G equipment manufacturing capabilities through strategic partnerships and capacity building. The company's telecom division has an annual installed capacity of 22 million units across product categories, manufacturing 5G FWA devices, routers, broadband equipment and microwave backhaul radios through its 51% subsidiary Dixon Electro Appliances. During Q2 FY27, Dixon's subsidiary signed an intellectual property licensing agreement with Aviat Networks and a 60:40 joint venture agreement with Taiwan's Gemtek for manufacturing optical transceivers and telecom components. In FY26, Dixon's consolidated operating revenue increased 25.8% YoY to ₹48,872.8 crore with reported net profit rising 31.3% to ₹1,438.6 crore, though adjusted profit after minority interest increased 20% to ₹845 crore.
The government is unlikely to hold a spectrum auction this fiscal year, marking the second consecutive year of missing its annual auction timeline. Telecom operators have little reason to buy additional airwaves as the three private-sector operators spent heavily at earlier auctions and few spectrum renewals fall due this year. The previous auction in June 2024 raised ₹11,340.78 crore from ₹96,320 crore of spectrum on offer, the third-lowest since competitive bidding began in 2010. Communications Minister Jyotiraditya Scindia noted that while there is no surfeit of spectrum, the government wants to monitor when there is desirable demand before holding auctions. Missing auctions could affect government revenue streams, as spectrum auctions are a key source of income, with the government expecting ₹42,411 crore from spectrum auctions in FY27 according to parliament committee reports.
