Tejas Networks: Regulatory Update & Financial Overview

Receipt of PLI Incentive Tranche & Q2 Performance Context Date: November 28, 2025 CMP: ₹494.50 (NSE) | Change: -1.85% 1. Key Development: PLI Scheme Disbursement Tejas Networks Ltd has successfully received a disbursement of ₹84.95 crore from the Ministry of Communications. This inflow falls under the Production Linked Incentive (PLI) Scheme for telecom and networking products. Tranche Details: This payment represents the first tranche—constituting 85% of the eligible incentive—for the fourth quarter of the fiscal year 2024–25 (Q4FY25). Status: The residual balance is slated for disbursement pending adherence to scheme guidelines. 2. Financial Performance Context (Q2 FY25) Investors should view the PLI receipt against the backdrop of the recently concluded September quarter, which reflected significant operational headwinds: Revenue Contraction: Revenue from operations declined by 90.7% YoY to ₹261.37 crore (down from ₹2,810.14 crore in Q2FY24). Profitability: The company reported a consolidated net loss of ₹307.17 crore, a sharp reversal from the net profit of ₹275.18 crore recorded in the corresponding period last year. EBITDA: Operational performance resulted in an EBITDA loss of ₹293.7 crore, compared to a positive EBITDA of ₹534.45 crore in the prior year. 3. Strategic Outlook & Management Guidance Despite near-term volatility, management has outlined specific strategic pivots to restore stability and growth: Global Expansion: Targeting an increase in international revenue contribution to the 30–40% range in the coming years to reduce domestic dependency. Margin Improvement: Focusing on a stabilized product mix to enhance operational margins. Balance Sheet: Committed to normalizing receivables within the current fiscal year (FY25). 4. Market Reaction Following the announcement, the stock witnessed profit booking/selling pressure, ending the session lower by 1.85% at ₹494.50 on the NSE (November 28, 2025).