Tejas Networks Reports ₹2.62 Billion Revenue in Q2 FY26 Amid Inventory and Warranty Provisions

Image Source: onlytech.com

Tejas Networks Ltd posted consolidated revenue of ₹2.62 billion for Q2 FY26, reflecting a sharp year-on-year decline. The company reported a quarterly loss of ₹307.13 crore, impacted by provisions for inventory obsolescence and warranty expenses. Management remains focused on operational recovery and long-term growth in telecom and defense segments.

Tejas Networks Ltd, a leading provider of telecom and networking solutions, has reported consolidated revenue from operations of ₹2.62 billion for the quarter ended September 30, 2025 (Q2 FY26). The company faced a challenging quarter, posting a net loss of ₹307.13 crore, primarily due to exceptional provisions related to inventory and warranty costs.

Major Takeaways:

Revenue Performance: Tejas Networks recorded ₹2.62 billion in Q2 revenue, down 89.4% year-on-year, reflecting delays in order execution and lower shipment volumes.

Loss Metrics: The company posted a quarterly loss of ₹307.13 crore, driven by:

₹145.43 crore provision for inventory obsolescence
₹44.44 crore provision for warranty expenses

Six-Month Overview: For H1 FY26, Tejas reported a total loss of ₹501 crore, compared to a profit of ₹352.66 crore in the same period last year, highlighting the impact of operational headwinds.

Operational Challenges: The company cited supply chain disruptions, project delays, and cost escalations as key factors affecting performance. However, it remains optimistic about recovery in H2 FY26.

Strategic Focus Areas: Tejas continues to invest in:

5G and broadband infrastructure solutions
Defense-grade communication systems
Global expansion through Tata Group synergies

Leadership Commentary: Management acknowledged the short-term challenges but emphasized a strong order pipeline, ongoing product innovation, and cost rationalization efforts to restore profitability.

Notable Updates:

Tejas Networks is part of Tata Group’s strategic digital infrastructure play, with increasing focus on government contracts and export markets.
The company is expected to benefit from PLI schemes and Make in India initiatives, especially in telecom and defense electronics.

Despite a tough quarter, Tejas Networks remains committed to long-term growth, leveraging its technology portfolio and strategic partnerships to navigate industry volatility.

Sources: canX News, Tejas Networks, Business Standard

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