The company’s consolidated revenue from operations saw a six-fold increase, reaching Rs 2,811 crore in Q2FY25, up from Rs 396 crore during the same quarter last year.
Tejas Networks also posted a profit before tax of Rs 411 crore in Q2FY25, compared to a loss of Rs 18 crore in Q2FY24.
In Q2, the company’s revenue mix was primarily driven by the private sector in India, contributing 93% of total revenue, a 13.7x year-on-year (YoY) increase, largely due to BSNL’s 4G-related shipments to TCS. The government segment contributed 4%, reflecting a 5% decline, while international revenues made up 3%, down by 3%, mainly due to lower shipments to Africa and South Asia.
Tejas ramped up 4G/5G RAN shipments for BSNL’s pan-India network, having shipped equipment to over 58,000 sites. The company also received additional orders to densify existing 4G sites in select circles. Internationally, it saw strong demand for its GPON and DWDM products, securing new customer wins in the Americas and Africa, including an initial order for network modernization in the US.
As of the end of the September quarter, the company’s order backlog stood at Rs 4,845 crore, with Rs 4,627 crore from India and Rs 218 crore from international markets, according to its Q2 investor presentation.Looking ahead, Tejas Networks is focusing on growth opportunities across both wireless and wireline segments. In wireless, it expects to benefit from BSNL’s 4G expansion and the eventual upgrade to 5G. The company is also targeting projects like the Indian Railways’ Kavach system, a collision avoidance technology, and private 5G applications for large enterprises.In the wireline space, Tejas plans to capitalize on Bharatnet Phase 3 and the expansion of DWDM backbone networks in the utilities sector. The company is also pursuing Fiber to the Home (FTTH) and network modernization contracts in the EMEA region and the Americas.
At 10:45 am, the scrip was trading 13.4% higher at Rs 1,349 on BSE. Its shares have surged 54% in 2024 to date and 104% over the past two years, with the company currently holding a market capitalization of Rs 23,051 crore.
Tejas Networks, part of the Tata Group, designs and manufactures high-performance wireline and wireless networking products for telecommunications, internet service providers, utilities, defense, and government entities across 75+ countries. Panatone Finvest, a subsidiary of Tata Sons, is its majority shareholder.
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