Telecom - Equipment & Accessories
Tejas Networks Limited designs, manufactures, and sells wireless and wireline networking products in India and internationally. It offers TJ1400eNodeB ultra flex, that combines fiber broadband, mobile broadband, high-speed Ethernet, and packet optical transport technologies in single platform; TJ1620W, a Macro eNodeB solution; and TJ6003W, a rack mountable server platform. The company also provides TJ1400-1 OLT, a pizza box GPON OLT that provides broadband solutions; TJ1400 OLT, a GPON/XGS-PON solution for FTTH and FTTB services with various end-user ONT devices; and TJ2100N ONT, for optical access networks deployed in fiber-to-the-home and fiber-to-the-building formats. In addition, it offers enterprise ethernet switches, such as TJ1400P-M1 portfolio of Layer2+ switches; TJ1400P M3 and TJ1400P M2 switching products optimized for LAN and metro applications; TJ1400P-4X series access routers; and TJ1400, an aggregation/core service router. Further, the company provides TJ1400, a broadband designed for the delivery of mobile backhaul, broadband access, enterprise, and network modernization; TJ1600, an optical transport platform that enables support of applications and services, including mobile backhaul networks, business connectivity, and broadband and access infrastructure; and TJ1270 MSPP, a multi-service provisioning platform. In addition, it offers TJ1400P for edge and access applications and TJI400PTN for access and aggregation applications. Additionally, it provides TJ1600 Micro-OTN compact platform; TJ1600 OTN/DWDM; TJ1600 Core Switch; and TJ5500 a network management system. It sells its products to telecommunications service providers, internet service providers, web-scale internet companies, utility companies, defense companies, and government entities. The company was formerly known as Tejas Networks India Limited and changed its name to Tejas Networks Limited in March 2008. Tejas Networks Limited was incorporated in 2000 and is headquartered in Bengaluru, India.
Summary of Tejas Networks's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Jan 25
Management Outlook:
Tejas Networks anticipates robust growth driven by ongoing and upcoming projects in India and international markets. Key drivers include BSNL's 4G/5G expansion, BharatNet Phase 3, Railway's Kavach initiative, and utility network modernization. International opportunities in 5G radios, broadband, and network modernization (e.g., US, Middle East, Africa) are expected to scale gradually. The company aims to leverage its R&D investments in 5G/6G, high-speed optical/WDM networks, and converged broadband to align with global trends like AI data centers and cloud connectivity. Margins may improve with a diversified product mix and operational efficiencies.
Major Points:
Outlook: Execution of Rs.2,681 crore order book and conversion of pipeline opportunities (BSNL 5G, BharatNet, Railways) in Q4 FY25 and FY26 to sustain growth. Focus on scaling global sales and margin recovery.
Last updated: Jan 25
Question 1 (Vimal Gohil, Alchemy Capital):
"Sumit sir, if you can just help me understand on the gross margin front...should our gross margins be much better going forward? What is the overall business pipeline looking like excluding the BSNL deal? What is our headcount at the end of the December quarter?"
Answer:
Gross margins were impacted by product mix changes, with wireless project margins lower than wireline. Margins are expected to improve as international business grows. The pipeline includes BSNL 4G/5G expansion, Kavach (Railways), private 5G, BharatNet Phase 3, and international 5G radio opportunities. Headcount exceeded 2,350, with 60% in R&D.
Question 2 (Ritesh Poladia, Girik Capital):
"How is the working of the 86,000 BSNL sites? Are they performing as expected? What is the update on R&D spend and import content?"
Answer:
BSNL confirmed 65,000 sites are live and performing well after rigorous pre-deployment testing. R&D spend (~INR600 crores annually) will continue for product development. Imported components (40"“65%) include semiconductors, while enclosures, assembly, and testing are localized.
Question 3 (Ritesh Poladia follow-up):
"If BSNL's 1 lakh 4G site order completes next quarter, will FY26 focus shift to 5G?"
Answer:
Yes, BSNL's 1 lakh 4G site execution concludes in FY25. FY26 will focus on 4G network expansion, 5G upgrades (n78 band), and fresh 5G SA deployments.
Question 4 (Rishab Gang, Sacheti Family Office):
"How does Tejas compete internationally against Cisco/Nokia? What cost advantages exist? What is the status of India wireless POCs?"
Answer:
Tejas differentiates via integrated RAN-backhaul architecture, reducing operator TCO by 20"“25% through opex savings. Ongoing domestic POCs for 4G/5G may convert to orders in Q4FY25/Q1FY26. International deals require band customization, extending sales cycles.
Question 5 (Rishab Gang follow-up):
"How has international sales team expansion progressed?"
Answer:
North America/LatAm teams grew 50% with 6"“7 additions in sales and technical roles. Partner networks expanded in Europe, Asia, and ANZ to leverage local expertise and language support.
Question 6 (Advait Lath, Nippon India MF):
"What are the terms of the Vodafone Idea deal? Is it linked to TCS?"
Answer:
The 3-year contract involves supplying pan-India mobile backhaul equipment (packet transport/DWDM). It is independent of TCS, covering deployment in select states, with payments tied to milestones.
Question 7 (Sunny Gosar, MK Ventures):
"What is the status of PLI incentives? What are the sizes of BharatNet, Kavach, and 5G opportunities?"
Answer:
FY23 PLI incentives received in FY24; FY24 claims under process. BharatNet Phase 3, Kavach, and 5G projects range from hundreds to thousands of crores. Conversions expected in Q4FY25/Q1FY26, replenishing order books for FY26 execution.
Question 8 (Sunny Gosar follow-up):
"Is Tejas targeting US BEAD/Rip and Replace programs?"
Answer:
Tejas engages in BEAD rural broadband and Rip and Replace via partners. Circuit emulation solutions for network modernization are key focus areas in North America.
Valuation | |
---|---|
Market Cap | 15.09 kCr |
Price/Earnings (Trailing) | 22.69 |
Price/Sales (Trailing) | 1.8 |
EV/EBITDA | 10.11 |
Price/Free Cashflow | -9.7 |
MarketCap/EBT | 15.46 |
Fundamentals | |
---|---|
Revenue (TTM) | 8.39 kCr |
Rev. Growth (Yr) | 361.81% |
Rev. Growth (Qtr) | -5.88% |
Earnings (TTM) | 665.11 Cr |
Earnings Growth (Yr) | 469.22% |
Earnings Growth (Qtr) | -39.8% |
Profitability | |
---|---|
Operating Margin | 11.63% |
EBT Margin | 11.63% |
Return on Equity | 17.88% |
Return on Assets | 6.51% |
Free Cashflow Yield | -10.31% |
Technicals: Bullish SharesGuru indicator.
Insider Trading: There's significant insider buying recently.
Growth: Awesome revenue growth! Revenue grew 453.3% over last year and 1174.7% in last three years on TTM basis.
Profitability: Recent profitability of 8% is a good sign.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Reasonably good balance sheet.
Dilution: Company has a tendency to dilute it's stock investors.
Smart Money: Smart money is losing interest in the stock.
Comprehensive comparison against sector averages
TEJASNET metrics compared to Telecom
Category | TEJASNET | Telecom |
---|---|---|
PE | 22.69 | 569.38 |
PS | 1.80 | 2.52 |
Growth | 453.3 % | 62.8 % |
TEJASNET vs Telecom (2021 - 2025)
Understand Tejas Networks ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
Panatone Finvest Limited | 53.83% |
Employees | 3.01% |
Government Pension Fund Global | 1.95% |
Kedia Securities Private Limited | 1.02% |
LLP | 1.01% |
Akashastha Technologies Private Limited | 0% |
Tata Sons Private Limited | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of Tejas Networks against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
ITI | ITI (Indian Teleph.Ind.Ltd)Telecom - Equipment & Accessories | 25.37 kCr | 3.23 kCr | +4.79% | -10.03% | -56.47 | 7.85 | +117.91% | -11.75% |
HFCL | HFCLTelecom - Infrastructure | 11.71 kCr | 4.65 kCr | +1.73% | -16.43% | 31.99 | 2.52 | -0.33% | +19.25% |
VINDHYATEL | Vindhya TelelinksTelecom - Infrastructure | 1.61 kCr | 4.14 kCr | +5.52% | -48.65% | 7.99 | 0.39 | -1.21% | -26.99% |
PARACABLES | Paramount CommunicationsCables - Electricals | 1.56 kCr | 1.4 kCr | +3.45% | -33.75% | 16 | 1.11 | +46.07% | +39.91% |
Investor Care | |
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Dividend Yield | 0.08% |
Dividend/Share (TTM) | 1 |
Shares Dilution (1Y) | 3.31% |
Diluted EPS (TTM) | 37.89 |
Financial Health | |
---|---|
Current Ratio | 1.35 |
Debt/Equity | 0.74 |
Debt/Cashflow | -0.74 |