Order Delays and Sticky Inventory Weigh on

TEJASNET

’ Financials

What began as a milestone year for

in FY25—deploying a 4G network across 100,000 BSNL sites—has turned into a prolonged financial struggle. The company is still awaiting BSNL’s ₹1,526 crore add-on order for 18,685 sites, forcing it to hold ₹2,300 crore of inventory for four straight quarters. With revenue collapsing and losses mounting, investors are questioning the firm’s financial model, cash runway, and dependence on a single customer. Order Delay and Inventory Overhang - BSNL add-on order of ₹1,526 crore remains pending despite advanced purchase order (APO) issued in May 2025. - Inventory levels: ₹2,300 crore, nearly double the order book size of ₹1,329 crore. - Long working capital cycle has severely constrained cash flows. Financial Performance - Q3FY26: ₹197 crore net loss, vs ₹166 crore profit YoY. - Revenue fell 88% YoY to ₹307 crore. - 9M FY26: ₹698 crore loss, vs ₹518 crore profit YoY. - Recurring EBITDA losses of ₹150 crore per quarter raise questions about sustainability. Investor Concerns and Stock Impact - Shares fell 8.9% to ₹380 post Q3 results. - In 2025, stock price dropped 61.7% from ₹1,185.70. - Analysts highlight risks from single-customer dependency on BSNL and lack of private telco adoption. Management Response - COO Arnob Roy acknowledged challenges but remained bullish on business prospects. - Company insists BSNL rollout will happen soon, citing DoT’s continued investment in 4G expansion. - Claims negligible risk of inventory obsolescence. Strategic Outlook - Heavy reliance on BSNL remains a structural vulnerability. - Experts urge greater focus on R&D and innovation to diversify beyond state-owned contracts. - Tejas says 70% of employees are in R&D, working on next-gen network technologies. - Execution of BSNL orders is critical to restoring profitability and investor confidence.