Overview

• Tejas Networks shares fell 11% after Q3FY26 loss and revenue collapse.

• Revenue dropped 88.3% year-on-year, while net loss stood at Rs. 196.55 crore.

• Order book rose to Rs. 1,329 crore, offering future revenue visibility.

Tejas Networks share price went down 11% to Rs. 371.30at press time. The steep fall came as investors reacted sharply to the company’s weak Q3FY26 financial performance. The stock opened at Rs. 399, lower than its previous close of Rs. 417.15, and touched an intraday low of Rs. 364.25, which is also its 52-week low. Strong volumes of over 1.31 crore shares worth over Rs. 488 crore highlighted heightened investor concern.

The sharp decline reflected market disappointment over a steep fall in revenue and a swing into losses. Although the company has maintained a healthy order book and long-term growth potential. Let’s explore an in-depth Tejas Network share price analysis based on Moneycontrol data. 

Tejas Network Q3 Results Weigh on Stock

Tejas Networks reported a net loss of Rs. 196.55 crore for Q3FY26, compared to a net profit of Rs. 165.67 crore in the same quarter last year. Revenue from operations dropped sharply by 88.3% year-on-year to Rs. 306.79 crore, down from Rs. 2,642.24 crore in Q3FY25. 

However, the Tata-owned company’s revenue rose 17.17% quarter-on-quarter from Rs. 261.82 crore in Q2FY26. The net loss also narrowed from Rs. 307.13 crore in the previous quarter, offering a small relief to investors. On the other hand, earnings per share for the quarter came in at -Rs. 11.09, compared to Rs. 9.44 a year ago. The negative figures highlight the severity of the earnings impact.

Operational Strength and Order Book Offer Support

Despite the short-term financial struggles, Tejas Networks showed strength in operational metrics. The company reported a Return on Capital Employed (ROCE) of 15.50% and a Return on Equity (ROE) of 12.80%, indicating efficient use of capital over the longer term. Over the past decade, Tejas has delivered a median sales growth of 34.8%, highlighting its strong business expansion capabilities.

A positive highlight is the company’s order book of Rs. 1,329 crore, which increased from Rs. 1,204 crore in Q2FY26. Around 92% of orders are domestic, largely driven by government and telecom infrastructure projects. Meanwhile, the other 8% come from international markets. This growing order pipeline indicated good potential for future revenue recovery.

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Balance Sheet and Business Position

Tejas Networks ended the third quarter with net debt of Rs. 3,349 crore, lower than Rs. 3,738 crore in Q2FY26. The narrowing gap was supported by improved working capital management. Gross debt stood at Rs. 3,885 crore, while cash and equivalents were Rs. 537 crore. The company has also improved its working capital cycle, reducing it from 251 days to 55.7 days, reflecting better operational discipline.

The company plays a crucial role in India’s telecom infrastructure, acting as a key supplier for BSNL’s 4G rollout under the CDOT–TCS consortium. Its product portfolio spans optical networking, wireless access, packet transport, satellite communication, and network management solutions, serving over 500 networks in more than 75 countries.

Stock Performance 

At the current price of Rs. 371.30, Tejas Networks stock trades well below its 52-week high of Rs. 1,150 and its all-time high of Rs. 1,495, reflecting sharp wealth erosion over the past year. The stock is down 66.7% over one year, though it still shows strong five-year gains of nearly 174%.

Tejas Network share price chart on Moneycontrol showed a loss of 11.23% at the time of writing:

Investor Outlook

While short-term sentiment remained weak due to earnings pressure, analysts on Moneycontrol maintained a ‘Hold’ rating. The optimistic expert sentiment indicated that investors may wait for execution of the order book and revenue recovery before taking fresh positions.

In the near term, Tejas Networks shares may trade under pressure until order execution improves and earnings stabilize. However, a strong order book and strategic importance in India’s telecom ecosystem could support recovery over the longer term if execution normalizes.

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FAQs

1. Why did Tejas Networks share price fall 11% today?

Tejas Networks shares fell sharply after the company reported weak Q3FY26 results. A steep fall in revenue and a swing to losses disappointed investors, leading to heavy selling and pushing the stock to its 52-week low.

2. How bad were Tejas Networks’ Q3 results?

The company reported an 88.3% year-on-year drop in revenue and a net loss of Rs. 196.55 crore. So the losses narrowed. However, the sharp decline compared to last year raised concerns about near-term earnings stability.

3. Is there anything positive in Tejas Networks’ performance?

Yes, despite weak quarterly numbers, the company’s order book increased to Rs. 1,329 crore. Operational metrics like ROCE and ROE remain healthy. It showed that the business still has long-term strength.

4. What role does Tejas Networks play in India’s telecom sector?

Tejas Networks is a key supplier for BSNL’s 4G rollout and provides networking products in optical, wireless, and satellite segments. Its solutions are used in over 500 networks in more than 75 countries.

5. Should investors buy Tejas Networks shares now?

Most analysts currently suggest a ‘Hold’ view. While the stock looks cheap after a sharp fall, investors may wait for better execution of orders and clear signs of revenue recovery before taking fresh positions.