Tejas Networks Ltd (NSE: TEJASNET, BSE: 540595) bounced back in trade on 1 December 2025 after weeks of relentless selling, as investors reacted to fresh government support under India’s Production Linked Incentive (PLI) scheme.
The Tata‑group telecom equipment maker’s share price traded around ₹510–515 in the afternoon session, up roughly 3–4% versus Friday’s close near ₹494.20. Intraday, the stock has moved in a band of about ₹504–523 on the NSE, with volume far above its recent 20‑day average. [1]
The rebound comes after the company disclosed receipt of ₹84.95 crore from the Ministry of Communications under the PLI Scheme for telecom and networking products – a development that has put Tejas Networks firmly on the “stocks to watch” lists across business media and broker commentary today. [2]
Yet the short‑term excitement sits against an uncomfortable backdrop: a stock that has lost more than 60% of its value from last year’s highs, a Q2 FY26 result that saw revenue collapse by over 90% year‑on‑year, and an ongoing technical and commercial tussle with Bharti Airtel over network interference. [3]
Tejas Networks share price today (1 December 2025)
According to exchange and market‑data platforms:
- Last traded price: around ₹512–513 per share in midday trade.
- Day’s range: roughly ₹504 (low) to ₹523 (high) on 1 December. [4]
- Previous close: about ₹494.10–₹494.20. [5]
- One‑week context: the stock hit a fresh 52‑week low near ₹479–₹474 in late November. [6]
- 52‑week range: roughly ₹474–₹1,403, meaning Tejas still trades around 60–65% below its recent peak despite today’s bounce. [7]
- Market capitalisation: about ₹9,000–9,150 crore. [8]
Trendlyne data flags Tejas as having set a new 52‑week low in the past week, with combined NSE and BSE volume today already well above 4 million shares by early afternoon – a sign that traders are actively responding to the PLI announcement. [9]
What triggered today’s move: ₹84.95‑crore PLI payout
The main catalyst for Monday’s rebound is the company’s announcement that it has received ₹84.95 crore from the Ministry of Communications, Department of Telecommunications, under the Production Linked Incentive (PLI) Scheme for telecom and networking products. [10]
Key details from the disclosure and subsequent media reports:
- The amount represents about 85% of the eligible incentive for Q4 FY24–25; the balance will be released later per scheme guidelines. [11]
- Multiple pre‑market notes – including from NDTV Profit, Moneycontrol and EquityPandit – highlighted Tejas Networks as a stock in focus for 1 December precisely because of this PLI inflow. [12]
- The PLI tranche follows larger incentive receipts earlier in 2025, including a payment of about ₹189 crore and another around ₹123 crore, both also under the telecom PLI programme. [13]
For investors, the latest PLI payout signals three things:
- Compliance and execution: Tejas continues to meet PLI scheme performance criteria, which are largely tied to incremental sales of domestically manufactured networking equipment.
- Cash‑flow support: While ₹84.95 crore is small relative to the scale of the recent quarterly loss (more on that below), it still provides a non‑trivial boost to short‑term cash flows.
- Policy tailwind intact: Fresh PLI money underscores that the government remains committed to nurturing a domestic telecom equipment ecosystem – a structural positive for players like Tejas with heavy local R&D and manufacturing footprints. [14]
From market favourite to deep drawdown
The magnitude of Tejas Networks’ drawdown over the past year explains why today’s modest bounce is attracting outsized attention.
- The stock has dropped from a 52‑week high around ₹1,403 to the ₹500 zone, a decline of roughly 63–65%. [15]
- Screener’s analytics show the one‑year price return around –63%, even though the five‑year price CAGR remains strongly positive, reflecting the earlier bull run. [16]
- MarketMojo reported a new 52‑week low near ₹479.25 in late November, describing a “continued downtrend” in the stock. [17]
Exchanges have also taken note of the heightened volatility and volume. The Economic Times’ stock‑update page records that the exchange sought clarification from Tejas Networks on 28 November regarding unusual movement in trading volume; a similar query was issued on 13 November. Company responses to the latest query were still awaited at the time of writing. [18]
Put simply, Tejas has shifted in the market narrative from a “PLI‑fuelled 5G play” to a high‑beta stock under heavy pressure – a transformation largely driven by what happened in Q2 FY26.
Q2 FY26: steep revenue collapse and third straight quarterly loss
Tejas Networks’ financial performance in the July–September quarter of FY26 was, by any measure, extremely weak.
According to the company’s own disclosure and multiple result analyses:
- Net sales in Q2 FY26 were about ₹261.8–262 crore, down roughly 90–91% year‑on‑year from more than ₹2,800 crore in Q2 FY25. [19]
- The company swung from a net profit of ₹275 crore a year earlier to a net loss of around ₹307 crore in Q2 FY26. [20]
- Operating margins collapsed to about –112%, and interest coverage turned deeply negative (around –3.5x) as interest costs surged to above ₹80 crore. [21]
- This was the third consecutive quarterly loss, with Screener’s time series showing negative net profit figures in Q4 FY25 and Q1 FY26 as well. [22]
Management has attributed the blow‑out loss to a combination of lower revenue and heavy provisioning. In the Q2 results note, CFO Sumit Dhingra said the company posted revenue of about ₹262 crore and ended the quarter with an order book of roughly ₹1,204 crore, but booked a large loss “due to lower revenue and provisions” linked to manufacturing process losses, warranty costs and inventory obsolescence – the latter alone estimated at about ₹190 crore. [23]
Market commentators have not sugar‑coated the numbers. MarketsMojo, for instance, described Q2 FY26 as one of the company’s most difficult quarters, highlighting the unprecedented revenue collapse and the shift from double‑digit positive margins to triple‑digit negative operating margins. [24]
It was these results that triggered the sharp slide in October, when Moneycontrol and Angel One both reported the stock dropping 7–9% intraday to fresh 52‑week lows in reaction to the earnings announcement. [25]
Strategic backdrop: BSNL 4G/5G rollout and global expansion
The recent financial shock sits uncomfortably alongside what remains, on paper, a very strong strategic position.
Tejas’ November 2025 corporate overview presentation and recent media interviews underscore several structural positives: [26]
- The company is a key vendor in BSNL’s pan‑India 4G network, rolled out as a 5G‑ready system under a TCS‑led consortium. Tejas cites deployment of more than 100,000 cell sites, about 300,000 radios and 100,000+ baseband systems, and over 13,000 IP/MPLS routers in the operator’s backhaul network.
- BSNL’s 4G/5G network built with Tejas gear is already carrying roughly 4 petabytes of data daily, serving over 22 million subscribers, making it one of the largest single‑vendor 4G/5G RAN networks globally. [27]
- Internationally, Tejas is running 4G and 5G proof‑of‑concept trials with operators in Japan, Tanzania, Uganda, Bhutan and Sri Lanka, and has already supplied gear to Bhutan Telecom. Management expects at least one of these PoCs to translate into a commercial deployment soon. [28]
- Partnerships with NEC Corporation and Rakuten Symphony aim to combine Tejas’ radio hardware with partners’ cloud‑native RAN software and orchestration platforms, strengthening its ability to address global 5G rollouts. [29]
- The company is heavily invested in future standards: its latest investor material cites 364 patents granted as of Q2 FY26, significant contributions to 3GPP standards, and a dedicated wireless centre of excellence working on 5G‑Advanced and 6G technologies. [30]
Management has consistently argued that the revenue dip is driven by order timing and execution delays, while fixed costs remain elevated because of aggressive R&D and capacity build‑out. They maintain that the fundamental demand drivers – exploding data usage, higher‑speed access technologies and global 5G rollouts – remain intact. [31]
Airtel–Tejas interference row: technical overhang
A separate, very public, issue is the ongoing technical dispute between Tejas Networks and Bharti Airtel.
In a detailed story on 27 November, The Economic Times reported that Airtel has complained about interference in its network in Rajasthan, allegedly caused by Tejas‑supplied equipment deployed in BSNL’s 4G network. Tejas has firmly rejected the allegation that its radios are “sub‑standard” or non‑compliant. [32]
Key points from that report:
- Tejas told ET that its gear co‑exists with other operators’ equipment across 100,000+ sites without interference, and is fully compliant with 3GPP and BSNL/TEC emission norms. [33]
- The company argues that interference arises when base‑station antennas from different operators are deployed very close to each other and face each other, and says additional filters are required on such sites.
- According to Tejas, BSNL has already deployed these extra filters at about 1,000 sites and can roll them out more widely if required. [34]
While this row is technical, not financial, it matters for investors because it touches on product credibility at a time when Tejas is trying to win more international 4G/5G contracts by positioning itself as a trusted alternative to Chinese vendors.
Balance sheet, valuation and ownership snapshot
Despite the recent earnings shock, Tejas is not a micro‑cap or a lightly followed small company.
From Screener, Mint and rating‑agency data: [35]
- Market cap: around ₹9,000–9,100 crore.
- Book value per share: roughly ₹180–190, implying a price‑to‑book multiple around 2.5–2.7x at current levels. [36]
- Trailing EPS (TTM) is negative (around –₹23), so the trailing P/E is not meaningful. [37]
- Over the last three years, return on equity has averaged in the mid‑single digits, though FY25 on its own showed double‑digit ROE before the more recent downturn. [38]
- Debt and interest costs have risen sharply over the past two years; interest expense in Q2 FY26 was above ₹80 crore, versus low single‑digit crore levels several years ago. [39]
- Working‑capital management has improved on some metrics (working‑capital days have fallen versus historic levels), but debtor days remain high, reflecting large receivables from big telecom and government clients. [40]
- Promoter holding (via Panatone Finvest, a Tata Sons subsidiary) stands a little above 53%, with foreign institutional investors owning just over 6% as of September 2025. [41]
ICRA reaffirmed Tejas’ long‑term credit rating earlier this year, explicitly citing the strength of its Tata‑group parentage as a key support factor, even as it monitors execution and profitability risks. [42]
What analysts and models are saying about Tejas Networks
The forward view on Tejas is fragmented, reflecting both its strategic positioning and recent financial pain.
Street target price
Trendlyne’s aggregation of published brokerage research currently shows: [43]
- An average target price of about ₹780 per share from the single visible covering analyst.
- That implies potential upside of around 50–55% from the current price region near ₹510–515.
- However, the same dataset notes that the broker downgraded its recommendation in a recent report (for example, from a more bullish stance to a neutral/“hold” type rating).
In other words, the fundamental analyst view that is publicly visible is: valuation has de‑rated sharply, leaving theoretical upside if execution improves – but conviction has weakened after the Q2 shock.
Algorithmic and technical forecasts
Several quantitative and technical platforms present a more cautious picture:
- WalletInvestor’s model‑driven forecast projects Tejas trading closer to the ₹400 range through much of 2026, with near‑term daily projections clustered around the ₹500 mark but a generally downward sloping path in its multi‑year simulation. [44]
- StockInvest’s daily model had estimated a “fair” opening price around ₹496.7 for 1 December – notably below the actual opening near ₹504 and current trading levels – and generally frames the stock as high‑risk due to volatility. [45]
- Moneycontrol’s technical scan tools currently classify Tejas as trading below its 200‑day moving average and mark the long‑term trend as weak, even though the stock shows a “high growth” profile based on historical fundamentals. [46]
Meanwhile, retail sentiment on some forums remains surprisingly upbeat: on Moneycontrol’s community page for Tejas, 100% of recent user votes are tagged as “Buy”, though such polls are anecdotal and not a reliable indicator of future price action. [47]
The divergence is stark: one visible broker target suggests significant upside if operations normalise, while several quantitative tools warn of a potential continuation of the downtrend. None of these, of course, constitute personalised investment advice.
How the PLI news fits into the bigger picture
Against this backdrop, today’s ₹84.95‑crore PLI payout looks less like a game‑changing event and more like a supportive but limited positive.
On the plus side:
- PLI incentives validate Tejas’ status as a serious domestic manufacturer and help cushion its cash flows.
- Government backing and BSNL’s large 4G/5G deployment give Tejas a powerful home‑market reference as it courts overseas operators increasingly wary of Chinese vendors. [48]
On the other hand:
- The Q2 FY26 net loss of ~₹307 crore is more than three times the size of this latest PLI tranche. One or two such payouts do not, by themselves, repair the income statement. [49]
- Rising interest costs and provisioning for manufacturing and warranty issues point to execution and cost‑control challenges that policy incentives alone cannot solve. [50]
For medium‑term investors, the central question is whether Tejas can translate its BSNL deployment, global 4G/5G trials and hefty R&D spend into sustainable, profitable revenue before debt and carrying costs bite harder.
Key factors investors are watching
Without venturing into specific recommendations, several themes are likely to drive how the market values Tejas Networks over the coming quarters:
- Revenue recovery and order execution
Can sales normalise from the Q2 collapse toward the multi‑thousand‑crore levels seen in FY24, and can the company execute its sizable order book without further large provisions? [51] - Margin repair and cost discipline
Reining in manufacturing losses, warranty claims and inventory issues will be crucial to restoring positive operating margins. - BSNL and global rollouts
The pace at which BSNL monetises its 4G network, upgrades to 5G and potentially expands capacity – plus how quickly Tejas converts international PoCs in Asia and Africa into firm contracts – will shape growth visibility. [52] - Resolution of the Airtel interference dispute
A clean, technically satisfactory closure would help remove an overhang on perceptions of product quality and regulatory risk. [53] - Balance‑sheet risk and credit trajectory
Credit‑rating agencies are currently comforted by the Tata‑group backing, but persistent losses or large new capex could change that calculus over time. [54]
Bottom line
On 1 December 2025, Tejas Networks is back in the green, powered by a fresh PLI cheque and renewed short‑term trading interest. Underneath the bounce, however, lies a company at a crossroads: strategically leveraged to India’s and the world’s shift to indigenous, non‑Chinese 4G/5G equipment, but grappling with a sudden collapse in quarterly revenue, rising financial leverage and intense scrutiny of its products and execution.
Whether today’s move marks the start of a longer‑term recovery or just another blip in a volatile downtrend will depend less on the next PLI tranche and more on how quickly Tejas can restore growth, profitability and confidence in its technology stack.
References
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