Tejas loses its 'tej'

Shares of Tejas Networks slipped sharply today, currently the top loser on the BSE, after the Tata group telecom equipment maker’s Q4FY26 print and commentary fell short of what the Street was positioned for. The stock was down about 4% to 6% intraday and traded near Rs.423.50 to 430.80 versus a previous close of Rs.449.90, as investors reacted to a weak revenue quarter and continued losses despite a healthier order book.

The key disappointment was the magnitude of the top-line miss and the persistence of losses. Tejas reported a fifth straight quarterly loss, with Q4FY26 net loss at about Rs.211 crore, while revenue plunged 82.5% YoY to Rs.333 crore (from Rs.1,907 crore a year ago). For FY26, revenue fell 88% YoY to Rs.1,103 crore (vs Rs.8,923 crore in FY25), flipping the business from a FY25 profit of Rs.447 crore to a FY26 loss of about Rs.909 crore.

Operating metrics also underscored the stress: EBITDA swung to a loss of about Rs.118 crore in Q4FY26 versus a profit of Rs.121.5 crore in Q4FY25, and the operating margin turned sharply negative at around -35% compared with +6% last year. While management highlighted progress on international wireless, citing a first commercial order for 4G/5G products overseas, a 5G Massive MIMO radio supply contract with NEC, and successful trials in the Americas, the market’s immediate read-through is that wins are not yet translating into revenue and profitability at the pace needed to offset domestic volatility.

To be fair, the order book is moving the right way, rising 49% YoY to around Rs.1,514 crore, but the balance sheet remains the overhang investors will keep coming back to as execution is awaited. Tejas reported net debt of about Rs.3,531 crore (gross debt Rs.4,035 crore), which keeps the near-term debate focused on cash conversion and delivery cadence rather than just order announcements. In the current tape, telecom equipment names are being rewarded less for “pipeline” and more for visibility on billing, margins and working-capital discipline, so Tejas’ next leg of rerating likely depends on whether the international traction converts into shipments quickly enough to stabilise revenues and arrest margin slippage.