AI-generated · cited to primary sources · not investment advice · How we research
Tejas Networks
Our verdict on Tejas Networks isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company successfully claimed and received a significant incentive of INR 312 Cr for FY25, demonstrating strong execution of the PLI roadmap. (1 exceeded across 1 tracked commitment)
“Till FY27... Current scheme is for five years, so it will end in FY27.”
The company successfully won the Bharatnet Phase-III order through a System Integrator partner during the quarter. (4 met, 1 exceeded across 5 tracked commitments)
“BharatNet Phase-III; Capacity augmentation of DWDM networks (400G+) in utility segment”
See the full cited Management analysis of Tejas Networks
How durable is the business?
The company continues to expand its defensible moat through patent filings, reaching 548 total patents, and launching high-capacity 1.2 terabit DWDM solutions. (4 expanding)
“Filed 26 patents in Q3FY26; Tejas has cumulatively filed 613 global patents of which 370 have been granted”
The regulatory moat has strengthened significantly with substantial PLI incentive realizations, jumping from initial eligibility to ₹312 Cr for FY25. (1 expanding)
“Received Rs 84.95 crore as PLI incentives for Q4-FY25; has cumulatively received Rs 397 crore as PLI incentives for FY25”
See the full cited Business Model analysis of Tejas Networks
Where does growth come from?
Revenue is showing a steady upward trajectory on a quarter-on-quarter basis, driven by shipments to private and international customers. (1 steady, 2 accelerating across 3 signals)
“Revenue from Operations 307 ... QoQ growth of 17%”
International traction is accelerating with a new strategic partnership with Rakuten Symphony and network expansion wins in Africa and Europe. (3 accelerating across 3 signals)
“Increasing our Wireless International customer engagements through partnerships with NEC and Rakuten”
See the full cited Future Growth analysis of Tejas Networks
What could break the thesis?
The risk remains high and is intensifying in the short term as the delay in receiving the Purchase Order (PO) and shipping for the 18k BSNL sites directly caused the massive revenue slump this quarter. (4 intensifying, 1 easing, 2 high-severity)
“Delay in receipt of BSNL 4G add-on PO of 1,526 Cr for shipment of 18k sites”
The risk is intensifying as net debt has increased to approximately INR 2,442 crores (Borrowings of INR 3,269 Cr vs Cash of INR 827 Cr), driven by high working capital needs for the BSNL project. (5 intensifying, 4 high-severity)
“Net Debt of 3,349 Cr vs 3,738 Cr in Q2FY26 mainly due to lower working capital, partly offset by capex; Gross Debt of 3,885 Cr and cash of 537 Cr”
See the full cited Risk analysis of Tejas Networks
Read the full thesis on Tejas Networks
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