Tejas Networks Q1 FY27 Earnings Call — Analysis (NSE: TEJASNET)

Tejas reports ₹402 Cr Q1 FY27 revenue with 20% QoQ growth, driven by international 5G radio wins and an end-to-end 5G network deal in South America, while the long-pending BSNL 4G expansion order of 26,000 sites is in final stages.

3 Aug 2026 · Analysis by Alpha Inflection

The take

Q1FY27 Revenue ₹402 Cr ( +20% QoQ ) . New guidance — Q1FY28 profitability trajectory positive EBITDA and EBIT . New story: International wireless breakout .

Results

Revenue ₹402 Cr +20% QoQ; PBT improved slightly to -₹271 Cr from -₹281 Cr; order book rose to ₹1,529 Cr; inventory reduced to ₹2,358 Cr.

Financial highlights

Guidance

BSNL 4G expansion order with 26,000 sites expected in Q2 FY27, which will clear inventory and receivables; path to profitability targeted within 12 – 18 months with positive EBITDA/EBIT first.

What management committed to

• [BSNL 4G expansion order] for additional 26,000 sites will materialize very soon, probably in this quarter [Q2 FY27]. — Q2FY27
• A lot of the [BSNL] receivables will also get cleared during the quarter [Q2 FY27] as acceptance tests complete. — Q2FY27
• The path to profitability will take 12 to 18 months, with the first target being positive EBITDA and EBIT, followed by PAT. — positive EBITDA and EBIT, Q1FY28
• AMC revenues from BSNL will start in the next few quarters and will be recognized over a period of 8 years. — Q4FY27
• The new data center interconnect product [TJ1600-D3] will start seeing customer deployment towards the end of this financial year [FY27] or early next financial year [FY28]. — Q1FY28
• Employee expenses are expected to remain flat for some more time. — flat, for some more time

Key themes

International 5G traction, BSNL expansion call, AI-driven network buildout

How the narrative shifted

• International wireless breakout: Management positions the quarter’s international 5G wins—radios to Europe and an end-to-end network in South America—as the beginning of a high-growth trajectory, validating years of R&D and creating reference networks that will unlock more TSPs globally.
• BSNL expansion as near‑term catalyst: The expected add‑on order for 26,000 sites is framed as imminent, with tactical benefits: it will absorb built‑up inventory, unlock stuck receivables, and relieve working‑capital pressure, acting as a bridge while international business scales.
• AI‑driven bandwidth supercycle: CTO outlines how AI training and inference are driving 20x traffic growth, requiring higher‑capacity optical (1.6T, multi‑band WDM) and new 6G access—positioning Tejas’s expanding portfolio as a direct beneficiary of the coming infrastructure buildout.
• Path to profitability underpinned by mix shift: Management acknowledges the current losses but outlines a multi‑lever path to profit: revenue growth (both domestic private and international), high‑margin AMC revenues starting soon, cost engineering, and working‑capital normalization once BSNL acceptance tests close.
• Working‑capital overhang clearing: High inventory and receivables tied to the BSNL ramp are acknowledged but framed as temporary; the imminent expansion order is the catalyst that will release these balances and reduce finance costs, aligning the balance sheet with the new growth phase.
• Technology leadership as competitive moat: Management repeatedly highlights radio performance, integrated BBU, converged wireline access, and award‑winning DCI as proof of a defensible, state‑of‑the‑art portfolio capable of displacing global vendors and securing international partnerships.

Operational commentary

• Secured first significant international 5G radio win: supplied massive MIMO radios to a European customer in partnership with NEC.
• Won first end-to-end 5G network deployment in South America, including radios, baseband unit, and core.
• BSNL 4G expansion order (additional 26,000 sites) is in final stages of approval; expected to be awarded in Q2 FY27.
• Expanded FTTx and optical market share with Tier-1 Indian telcos: pan-India residential broadband rollout, 100G/400G DWDM for 5G backhaul and hyperscaler data center connectivity.
• Grew international optical presence with a leading African wholesale bandwidth provider using 100G/400G coherent DWDM.
• Selected by a global Tier-1 telco for a joint 5G R&D project, expected to lead to future product shipments.
• Won communication network modernization for a large power utility, continuing strong utilities sector traction.
• Data center interconnect product TJ1600-D3 named a global finalist at Leading Lights 2026 awards; field trials expected this year, deployment by end-FY27/early-FY28.
• D2M broadcast radio solution completed lab and field trials with Prasar Bharati and FreeStream; awaiting tender.
• Filed 46 new patents, taking global portfolio to 722 patents (380 granted).

Analyst Q&A

• Q. Current status of BSNL receivables and acceptance tests

  Acceptance tests and pending features are in a very advanced stage, coming to closure. We expect a lot of the BSNL receivables to get cleared during the quarter.

• Q. Quantification of international wireless order wins (number of sites)

  Cannot quantify as customer permission is required, but getting incumbency and reference deployments is the most important thing for future business from these TSPs.

• Q. Are there performance-linked payment conditions in international orders like BSNL?

  No, international orders came after extensive POCs, so there are no performance-linked payments. Standard 60-90 day payment cycle applies.

• Q. Timeline and path to achieving positive bottom line

  First target is positive EBITDA and EBIT, then PAT. 12 to 18 months is a reasonable time to expect. Growth in revenue, working capital management, and margin improvements will drive it.

• Q. Why have receivables increased to ₹2,232 Cr despite no BSNL order, and are collections sticky outside BSNL?

  Increased shipments of this quarter have gone into receivables; collections in non-BSNL segment did occur but driven by current quarter's higher shipments.

• Q. Wireless vs. wireline revenue split for the quarter

  We don't give that split. International has been largely wireless with some wireline, but we don't disclose detailed numbers.

• Q. Size and timing of AMC revenues from BSNL

  AMC numbers have not been shared yet; we will share when they materialize. They will be recognized over 8 years and come circle by circle as deployments finish.

• Q. D2M order trajectory and tender timeline

  Awaiting Prasar Bharati tender; we will partner with an SI like FreeStream. Trials were exclusively with our equipment, giving a unique position, but no clarity on tender timing.

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