Tejas Networks Q1 FY27 Results: Revenue Doubles YoY to ₹402 Crore, South America 5G Win Strengthens Global Presence

What Happened ?

Tejas Networks delivered a strong top-line recovery during Q1 FY27, driven primarily by international shipments of 5G radios and domestic deliveries of 100G/400G optical transport and FTTx products.

The company also secured its first commercial order for an end-to-end 5G network deployment in South America, an important milestone in expanding its international wireless business.

Operationally, the order book remained stable at over ₹1,500 crore while cash balances improved during the quarter. Management also indicated that a significant portion of inventory is expected to be utilized for executing the upcoming BSNL 4G expansion order once the additional rollout begins.

key details

Wireless Business:

• Secured its first commercial end-to-end 5G RAN deployment in South America.
• Completed manufacturing and shipment of 5G Massive MIMO radios for a global customer in partnership with NEC.
• Selected by a Global Tier-1 telecom operator for a joint 5G R&D collaboration.
• Awaiting purchase orders for 26,000 additional BSNL 4G sites following the Letter of Intent already received. 

Wireline Business:

The wireline segment continued to expand through:

• Growth in Tier-1 telecom FTTx broadband deployments.
• Supply of 100G/400G DWDM systems for 5G backhaul and hyperscaler connectivity.
• Selection as a communications network modernization vendor for a large power utility.
• Expansion orders for coherent optical networking equipment from a leading African bandwidth wholesaler. 

Innovation & TechnologyInnovation & Technology:

Tejas continued investing heavily in research and innovation during Q1 FY27.

Key developments include:

• 46 new patent filings during the quarter, increasing cumulative filings to 722, with 380 patents granted.
• Signed Memorandums of Understanding with IIT Gandhinagar and MahaIT to strengthen India’s telecom innovation ecosystem.
• Successfully completed laboratory and field trials demonstrating coexistence of Direct-to-Mobile (D2M)technology with existing LTE and 5G networks.
• Received international recognition, with its TJ1600-D3 DCI platform being selected among the global top three finalists at the 2026 Leading Lights Awards.

AI Infrastructure Opportunity:

Management believes AI-driven infrastructure demand is becoming a major long-term growth driver.

According to the presentation, AI workloads will require:

• Higher-capacity optical transport networks.
• Faster data center interconnect (DCI) solutions.
• Next-generation coherent optical systems up to 1.6 Tbps.
• AI-native 5G Advanced and future 6G infrastructure.

The company is expanding its portfolio to address these emerging opportunities through advanced routers, coherent optics, AI-enabled network controllers and next-generation DWDM platforms. The AI infrastructure roadmap is illustrated in the presentation diagrams on pages 8 and 9.

Risk Analysis

Summary:

• Although revenue recovered strongly, Tejas continues to report operating losses and remains dependent on the timely execution of large telecom projects, particularly the BSNL expansion programme.

Key Risks:

• Continued net losses despite improving revenue.
• High inventory levels awaiting execution of major customer orders.
• Net debt increased to ₹4,277 crore due to operational and capital expenditure funding.
• Working capital requirements remain elevated because of receivables and scheduled payments.
• Revenue remains dependent on timely execution of BSNL expansion and international telecom projects. 

Worst Case:

• Delays in BSNL’s 4G expansion, slower international order execution or prolonged telecom spending weakness could delay profitability improvements and increase working capital pressure.

Risk Level: Medium

Company Commentary

Management highlighted several strategic priorities for the coming quarters:

• Continue expanding international wireless business following recent 5G wins.
• Capitalize on BSNL’s nationwide 4G rollout and expected expansion order.
• Maintain steady growth in optical networking and broadband infrastructure.
• Invest aggressively in AI-ready networking technologies, including 5G Advanced, 6G, coherent optics and AI-enabled network management.
• Leverage increasing global demand for AI infrastructure and high-capacity data center connectivity.