Tejas Networks: a Rs 1,537 crore TCS letter of intent

Tejas Networks (NSE: TEJASNET) is a Tata Group company making wireline and wireless networking products for telecom operators, utilities, governments, and defence networks in 75+ countries. Its products include 5G Massive MIMO radios and a converged 4G/5G core. What happened: FY26 consolidated revenue fell 87.6% to Rs 1,103.3 crore after BSNL 4G supplies completed. Net profit swung to a loss of Rs 908.9 crore from a profit of Rs 446.5 crore in FY25. Net debt stood at Rs 3,531 crore. In Q2 FY27, Tejas received a Rs 1,537 crore letter of intent from TCS for 18,685 BSNL 4G sites; the detailed purchase order was awaited. Tejas also shipped 5G radios to Europe through its NEC partnership, secured its first end-to-end 5G network order in South America (radio, baseband, and core), and its Rakuten Symphony partnership supports Open RAN expansion. On October 8, it demonstrated 6G sensing with Qualcomm -- a technology demo, not a commercial order. Why it matters: The FY26 loss was a project-completion hangover, not structural deterioration. The TCS LOI, if converted, restarts the BSNL revenue cycle; the South America order is the first proof of end-to-end wins outside India. What I am watching: Whether the TCS LOI converts to a purchase order, Q2 FY27 revenue for signs of recovery, and whether net debt stabilises. My stance: Tejas is a genuine 5G equipment maker with international wins, but the FY26 financials are severe: 87.6% revenue decline, Rs 909 crore loss, Rs 3,531 crore net debt. The recovery thesis depends entirely on new order flow converting to revenue. The risk is that execution delays extend the losses. I do not hold a position in Tejas Networks at the time of writing. This is not investment advice.