Tejas Networks Q2 Results: Revenue Up 55%, Loss Narrows

Mumbai — The Tejas Networks Q2 results for the September quarter of FY27 show a sharp year-on-year recovery in revenue alongside a narrowing loss, as the Tata Group-backed telecom equipment maker reported net revenue of ₹406 crore, up 55 per cent from ₹262 crore in the same quarter last year. The Tejas Networks Q2 results, announced on October 16, also showed the net loss narrowing to ₹207 crore from a loss of ₹307 crore a year ago.

The biggest positive was the Tejas order book. Tejas Networks closed the quarter with an order book of ₹2,315 crore, up from ₹1,529 crore at the end of Q1 FY27 — a sequential growth of 51 per cent that gives the company its strongest revenue visibility in recent quarters. EBITDA loss narrowed to ₹108 crore from ₹293 crore in the year-ago quarter, while the half-year numbers showed net revenue of ₹808 crore against ₹464 crore last year.

Tejas Networks Q2 results: the numbers in detail

On a sequential basis, the Tejas Networks Q2 results were flatter: revenue edged up to ₹406 crore from ₹402 crore in Q1, and the company remains loss-making at the operating level. The balance sheet carries the strain — net debt stood at ₹4,384 crore, gross debt at ₹4,835 crore, with cash of ₹451 crore. Against that debt, the Tejas order book of ₹2,315 crore provides the clearest forward visibility the company has had in recent quarters. Investors will distinguish between receiving orders and converting them into profitable revenue, and the debt load is the key monitorable from here.

Still, the year-on-year trajectory is clearly improving. Losses have reduced by ₹100 crore in a single quarter, the EBITDA loss burden has more than halved, and the order book expansion suggests the company's telecom networking and 5G radio businesses are winning work again after a difficult FY26.

Tejas Networks Q2 results: what drove the recovery

Tejas Networks, the Tata Group telecom portfolio company, is India's homegrown telecom equipment maker, supplying optical networking, broadband access and wireless products including 5G radios to carriers in India and overseas. The company has been positioning itself as a beneficiary of domestic network expansion and the government's push for indigenous telecom gear.

The 51 per cent sequential jump in the Tejas order book is the number management will lean on in Q2 FY27. A ₹2,315 crore backlog against quarterly revenue of ₹406 crore implies more than five quarters of coverage at current run rates — though execution, margins and working capital will decide how much of it converts into profitable sales.

Tejas Networks Q2 results: what investors watch next

Three questions dominate the outlook. First, can revenue growth continue into the seasonally stronger second half, and can the company push towards operating break-even? Second, will the order book convert without further pressure on working capital, given the ₹4,384 crore net debt? Third, how does the competitive landscape evolve as global vendors and domestic rivals chase the same 5G and broadband contracts?

The Tejas Networks Q2 results answer the first question partially — revenue is recovering and losses are shrinking. The next two quarters will show whether the order-book strength of Q2 FY27 was the start of a sustained turnaround or a one-quarter bounce. For now, the Tata Group telecom business, the improving financials and the record order book give the bulls something concrete to point to.