What Does Tejas Networks Do and How Did It Begin?
Tejas Networks is a Bengaluru-based telecom equipment company founded in 2000. It designs and manufactures products used in telecom networks such as optical transmission systems (OTN/DWDM), broadband access (GPON), 4G/5G radio equipment, and Ethernet switching platforms.
The company serves telecom operators, internet service providers (ISPs), government organizations, utilities, and enterprises across more than 75 countries. In 2021, Tata Sons, through its subsidiary Panatone Finvest, acquired a majority stake in the company, making Tejas a strategic part of Tata’s digital ecosystem.
How Has Tejas Networks Stock Performed Lately?
As of May 12, 2025, Tejas Networks is trading at ₹701.05 per share. Over the past year, it has delivered a solid 26.6% return. The stock has recently seen upward movement, rising 3.18% in the last trading session, and remains actively tracked by both retail and institutional investors.
Source: Moneycontrol
What Are the Key Business Segments of Tejas Networks?
Tejas operates in the core telecom hardware space, offering:
- Optical Transport Solutions: Used for long-distance high-capacity data transmission.
- Broadband Access (GPON): Enables fiber-to-the-home (FTTH) connections.
- 4G/5G Radio Access Network (RAN): Provides wireless connectivity solutions.
- Packet Switching & Routers: For carrier-grade internet backhaul.
Its clientele includes BSNL, Airtel, RailTel, Tata Communications, and several global telecom players.
What Do Tejas Networks’ Financials Look Like?
| Metric | Value (FY25) |
|---|---|
| Market Capitalization | ₹11,980 crore |
| Stock Price | ₹701.05 |
| P/E Ratio | 26.58 |
| Net Sales | ₹8,923 crore |
| Net Profit | -₹72 crore |
| ROE | 5.25% |
| Debtor Days | 182 |
| YoY Sales Growth | 261.3% |
Source: Screener
The company has posted stellar revenue growth but remains in the red at a net level, largely due to high R&D investments and delays in government payments.
How Does Tejas Networks Compare With Its Peers?
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | Net Profit (₹ Cr) | Sales (₹ Cr) | ROE (%) |
|---|---|---|---|---|---|---|
| Tejas Networks | 701.05 | 26.58 | 11,980 | -72 | 8,923 | 5.25 |
| HFCL | 74.14 | 27.97 | 10,693 | 78.48 | 961 | – |
| Nelco | 790.60 | 184.19 | 1,807 | -0.03 | 50.77 | – |
| Indus Towers | 388.20 | 10.55 | 1,04,658 | 1,776.5 | 7,727 | – |
| Vindhya Telelinks | 1,379.10 | 6.01 | 1,634 | 155.06 | 4,086 | – |
Tejas leads in growth, though lags on profitability compared to some peers.
What Are the Latest Developments Around Tejas Networks?
- BSNL 4G/5G Project: Won a ₹7,492 crore contract to supply pan-India radio network equipment for BSNL, covering 100,000 towers.
- Global Expansion: Signed an MoU with Telecom Egypt to support their national broadband infrastructure goals.
- Make-in-India Champion: Supplies indigenous gear under government mandates promoting local telecom manufacturing.
What Does the Future Hold for Tejas Networks?
With support from Tata Sons and a robust R&D pipeline, Tejas aims to:
- Expand global customer base, especially in Africa and the Middle East.
- Increase in-house manufacturing and chip-level design capabilities.
- Deepen penetration into private 5G enterprise deployments in India.
How Is the Telecom Equipment Sector Positioned?
The global telecom infrastructure market is expected to grow at 8–10% CAGR through 2030, led by:
- Widespread 5G rollout.
- Fiberization of mobile towers.
- Enterprise adoption of private 5G networks.
In India, government-led projects like BharatNet, PLI schemes, and 5G auctions are opening large-scale opportunities for domestic players like Tejas Networks.
What Are the Strengths and Weaknesses?
Pros:
- Backed by the Tata Group’s ecosystem.
- Significant wins in public telecom contracts.
- Design-led R&D model with global IP portfolio.
Cons:
- Net losses despite revenue surge.
- Delayed payments from government clients.
- Competition from global majors like Huawei, Nokia, and Ericsson.
Tejas Networks has emerged as a key player in India’s telecom hardware ecosystem, powered by innovation, public sector wins, and Tata Group backing. While it faces near-term profitability and payment hurdles, the long-term structural demand for 5G and broadband places it in a favorable spot.
Disclaimer: This article is purely informational and does not offer any investment recommendation.
Data Sources: Screener, Moneycontrol, Wikipedia, Tejas Networks Investor Reports, IndiaInfoline
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