5 days ago
Tejas Networks Shares Rise After ₹1,537-Crore BSNL 4G Order
Tejas Networks makes equipment used for telephone and internet networks.
Tata Consultancy Services has given it a Letter of Intent worth ₹1,537 crore.
The equipment will help Bharat Sanchar Nigam Limited expand its 4G network.
It will cover 18,685 sites across the project.
TCS is expected to send the formal purchase order later.
Investors liked the news, and Tejas Networks’ shares rose sharply.
The company’s revenue almost doubled in the latest quarter.
However, it still reported a larger loss and has substantial debt.
Tejas is also waiting for a possible order covering another 26,000 sites.
Tejas Networks received a ₹1,537-crore Letter of Intent from Tata Consultancy Services for BSNL’s 4G rollout.
The LoI covers radio access network equipment, accessories and installation materials for 18,685 sites.
The formal purchase order from TCS is expected to follow, so the LoI has not yet become a detailed purchase order.
The new business slightly exceeds Tejas Networks’ ₹1,529-crore June-quarter order book; a further 26,000-site order is still awaited.
Shares rose between nearly 10% and 12% in reports, while the company’s Q1 FY27 net loss widened to ₹202 crore despite revenue nearly doubling to ₹402 crore.
- Who
- Tejas Networks, Tata Consultancy Services (TCS), and Bharat Sanchar Nigam Limited (BSNL).
- What
- Tejas Networks received a ₹1,537-crore Letter of Intent for RAN equipment, accessories, and installation materials for BSNL’s 4G expansion.
- Where
- The equipment is intended for 18,685 BSNL sites as part of its network expansion; Tejas Networks is based in Bengaluru.
- When
- The shares rose in morning trading on August 28, with one report describing the session as Friday trading.
- Why
- The LoI supports BSNL’s 4G rollout and was viewed by investors as a major addition to Tejas Networks’ business pipeline.
Growth Opportunity
Financial Caution
Impact of the TCS LoI
Growth Opportunity
The ₹1,537-crore LoI is slightly larger than Tejas Networks’ existing ₹1,529-crore order book and could materially expand its pending business once the purchase order is issued.
Financial Caution
The LoI is not yet the detailed purchase order, which TCS is expected to issue later, so the timing and execution of the business remain pending.
Revenue outlook
Growth Opportunity
The order adds to Tejas Networks’ role in BSNL’s 4G deployment, while the company is also awaiting a potential order for 26,000 additional sites.
Financial Caution
Much of the initial BSNL rollout has been completed, and the company is attempting to rebuild revenue after that earlier phase.
Financial performance
Growth Opportunity
Q1 FY27 revenue nearly doubled to ₹402 crore, supported by international 5G radio shipments and domestic optical and FTTx products.
Financial Caution
The net loss widened to ₹202 crore from ₹194 crore, and the company reported net debt of ₹4,277 crore at the end of the quarter.
Key facts
- LoI value
- ₹1,537 crore
- Customer and contractor
- TCS received the LoI for equipment supplied by Tejas Networks.
- Project coverage
- 18,685 BSNL 4G sites
- June-quarter order book
- ₹1,529 crore
- Q1 FY27 revenue
- ₹402 crore, nearly double the year-earlier ₹202 crore
- Q1 FY27 net loss
- ₹202 crore, compared with ₹194 crore a year earlier
- Debt and cash at quarter-end
- Gross debt of ₹4,866 crore, cash of ₹589 crore, and net debt of ₹4,277 crore
Quotes
Tejas Networks
Telecom equipment manufacturer Tejas Networks, in a regulatory filing
“The detailed Purchase Order for the same would be issued by TCS to the company in due course”
financialexpress.com
Sources
Related news
Tejas Networks shares jump after ₹1,537-crore TCS deal
BSNL commissions 572 indigenous 4G towers in Chittoor area
Indian Stocks In Focus After Corporate Announcements, August 28
BSNL Announces Independence Day Offers, Expands Indigenous 4G Network
BSNL Plans 5G Rollout in Andhra Pradesh in Six Months
Sterlite Technologies wins $210M international order for optical fibre cables
Delhi High Court Rejects Challenge to C-DOT Emergency Alert Deal
Two Die in Nigdi BSNL Duct as Cable Theft Probe
India Notifies IST Rules As Common Official Time Reference
Airtel Narrowly Surpasses Jio in July Subscriber Additions
