Tejas Networks shares decline 5% after reporting third straight quarterly loss in Q2

Shares of Tejas Networks Ltd. declined 5% in early trade on Monday, October 20, after the Tata Group company reported its third consecutive loss-making quarter for the July-September period.

The company reported its September quarter earnings after market hours on Friday. It reported a net loss of ₹307.17 crore in the second quarter, compared to a net profit of ₹275.18 crore in the year-ago period.

Its total revenue from operations declined 90.7% to ₹261.37 crore from ₹2,810.14 crore in the same period last fiscal.

The company reported earnings before interest taxes depreciation and amortisation (EBITDA) was a loss of ₹293.7 crore in comparison to a positive EBITDA of ₹534.45 crore in the year-ago period.

The company's chief financial officer (CFO) Sumit Dhingra said the company reported a 30% sequential increase in its revenue. It ended the September quarter with an order book of ₹1,204 crore.

Tejas Networks' order book in the year-ago period was at ₹4,845 crore, while it was ₹1,241 crore at the end of the first quarter of FY26.

"We had a net loss of ₹307 crore, largely due to lower revenue and provisions due to manufacturing process losses, warranty and inventory obsolescence," he added.

The company's total revenue from operations in the first half of the financial year declined 90% to ₹463.8 crore compared to ₹4,374.03 crore in the previous year.

It reported a net loss of ₹501 crore in the first six months of the current financial year compared to a profit of ₹352.66 crore in the year-ago period.

The company reported a trade receivables of ₹4,026 crore in the second quarter compared to ₹3,758 crore in the previous year.

In July, when Tejas Networks reported its first quarter results, it told CNBC-TV18 that it expected a stronger performance in the second half of the fiscal. The first quarter was behind estimates due to some purchase orders that were shifted, chief operating officer and executive director Arnob Roy had said.

The company remained confident of scaling international revenue to 30%-40% over the next few years, improving margins with a more stable product mix, and normalising receivables within the current financial year.

Shares of Tejas Networks were down 5% at ₹560.05 apiece in early trade on Monday. The stock has declined 57.5% this year, so far.

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