Tejas Networks Q2 FY27 Earnings Call — Analysis (NSE: TEJASNET)
Tejas Networks reported Q2 FY27 revenue of ₹406 Cr (+55% YoY) with losses narrowing to ₹-207 Cr, while order book expanded to ₹2,315 Cr on BSNL 4G expansion wins.
Result quality: stable — Results context unavailable. Management sentiment: neutral.
The take
Q2FY27 Revenue from Operations ₹406 Cr ( +55% YoY ) , H1FY27 +74% . New guidance — Q3FY27 bsnl 4g expansion po conversion ₹1,500 Cr . New story: International wireless breakout .
Results
Revenue grew 55% YoY to ₹406 Cr with EBITDA loss narrowing to ₹-108 Cr (vs ₹-293 Cr loss YoY) and net loss at ₹-207 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹406 Cr | +55% | yoy · Q2FY27 |
| Revenue from Operations | ₹406 Cr | +1% | sequential · Q2FY27 · vs Q1FY27 |
| H1 Revenue from Operations | ₹808 Cr | +74% | yoy · H1FY27 |
| EBITDA | ₹-108 Cr | yoy · Q2FY27 · vs ₹-293 Cr in Q2FY26 | |
| EBITDA | ₹-108 Cr | sequential · Q2FY27 · vs ₹-99 Cr in Q1FY27 | |
| PAT | ₹-207 Cr | yoy · Q2FY27 · vs ₹-307 Cr in Q2FY26 | |
| Order Book | ₹2,315 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Net Working Capital | ₹4,235 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Inventory | ₹2,314 Cr | point_in_time · Q2FY27 · Sep-26 | |
| Net Debt | ₹4,384 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
Management expects significant reduction in inventory and gross debt over upcoming quarters driven by execution and milestone collections on the BSNL 4G expansion order.
What management committed to
- The [remaining portion of the INR1,500 crore BSNL 4G expansion order] will come into the order book — most of it we expect by the end of this quarter [Q3FY27]. — INR1,500 crores, Q3FY27
- This is the quarter [Q3 FY27] when we will see a significant amount of collections coming from BSNL [reducing receivables substantially]. — Q3FY27
- Over the next few quarters, [the] inventory [built for the BSNL expansion] will come down to much earlier levels, which are in line with the kind of quarterly business that we do. — Q4FY27-Q2FY28
- From a debt point of view, we're going to see a significant reduction [in gross debt over the next few quarters as BSNL shipments and collections progress]. — Q4FY27-Q2FY28
Key themes
BSNL expansion execution and balance sheet deleveraging
How the narrative shifted
- International wireless breakout: Management presents progress on international POCs (North America, Asia Pacific), Tier 1 custom radio development engagements, and initial 5G shipments to South America as concrete proof that the wireless strategy is transitioning from reference networks to commercial traction.
- BSNL expansion as near‑term catalyst: The cash-flow timeline has shifted from Q2 to Q3, framed as a collection lag rather than a structural issue.
- AI‑driven bandwidth supercycle: The AI infrastructure build-out is directly linked to Tejas's expanding wireline (400G, OTN, IP/MPLS) and wireless (AI RAN, 6G) portfolio, positioning the company as a beneficiary of structural demand rather than a cyclical uptick.
- Path to profitability underpinned by mix shift: The multi-lever path to positive EBITDA is reaffirmed through actual financial improvement (narrowing losses) and the expected working-capital normalization from the BSNL execution.
- Working‑capital overhang clearing: The tone has moved from defensive (justifying the overhang) to constructive (showing the exact execution levers that will resolve it).
- Technology leadership as competitive moat: Patents (748), 6G demos with Qualcomm, the TSDSI governing council seat, and the new Tata endorsement mark are presented as ongoing proof points of a defensible technological edge without dominating the quarter's story.
- Data Center Interconnect (DCI) acceleration: DCI is explicitly carved out as a distinct growth vector driven by AI infrastructure demand, with specific order wins (Government of India OTN, Tier 1 pan-African optical) and a product roadmap geared towards terabit-speed interconnect.
Operational commentary
- Received LOI and purchase orders for 18,685 4G sites for BSNL network expansion; commenced initial shipments in Q2 FY27.
- Started initial shipments of end-to-end 5G solution (RAN and core deployment) to an international customer in South America.
- Received LOI from a new SI partner to supply IP/MPLS routers for BharatNet middle mile upgrade across 3 states.
- Secured an order for building a pan-India strategic OTN network for a Government of India Enterprise.
- Won selection for 400G optical equipment with a new Tier 1 pan-African telecom operator.
- Initiated multiple 5G POC engagements across North America and APAC, and engaged with Tier 1 telcos for custom 5G radio development.
Analyst Q&A
Q. How much dues have been recovered from BSNL, how much is outstanding, and what is the collection timeline?
Met milestone delivery requirements for BSNL and expect a significant amount of collections in Q3 FY27 that will substantially reduce receivables, though specific numerical breakout cannot be shared.
Q. Out of the ₹2,315 Cr order book, how much came from non-BSNL customers vs the ₹1,500 Cr BSNL expansion order?
A substantial portion of the BSNL ₹1,500 Cr LOI has been converted to POs and entered the order book, with the remainder coming in by end of Q3; customer-specific order book breakdowns were declined.
Q. What quantum of inventory and gross debt reduction is targeted over the next 6-9 months?
Declined to give exact targets, but affirmed both inventory and gross debt will reduce significantly as the BSNL order executes and milestone payments convert into cash.
Q. What is the status and approach to AI Data Center Interconnect (DCI) and GPU vendor partnerships?
Clarified Tejas is not partnering directly with GPU vendors but working with system integrators building complete server/rack infrastructure to provide interconnect and switching.
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