Tejas Q2 FY27: Consolidated Loss Narrows to ₹207 Cr YoY, Widens ~28% Adjusted

Tejas Networks' consolidated Q2 FY27 revenue came in at ₹405.68 Cr, below the ₹430–480 Cr range flagged in our pre-result preview, while the consolidated net loss narrowed to ₹206.94 Cr from ₹307.13 Cr a year ago (-32.6% YoY) — on the surface a validation of the 'loss likely continues but narrows' expectation, though the top-line miss versus the Street range is notable given the ₹1,537 Cr BSNL 4G RAN order booked in August was expected to show up in volumes. Revenue was flat sequentially (+0.9% QoQ versus Q1 FY27's ₹402.16 Cr) even as the YoY comparison looks strong (+54.9%), because last year's base itself was depressed by a weak quarter, not because this quarter accelerated. The loss-narrowing story is similarly a base-effect artifact: Q2 FY26 PAT absorbed a ₹145.43 Cr one-off charge in cost of materials (contract-manufacturing process losses and design changes, per the standalone notes) plus a heavier ₹44.44 Cr warranty provision, versus just ₹7.24 Cr this quarter. Stripping that one-off from the year-ago base, adjusted PAT loss would have been closer to ₹161.70 Cr — meaning this quarter's ₹206.94 Cr loss is actually ~28% worse on a clean YoY basis, not better. Net profit margin on total income stayed deeply negative at -50.1%, essentially flat versus Q1 FY27's -49.2%, and operating-level losses (PBT + finance cost + D&A, a proxy EBITDA) widened sequentially to roughly -₹80 Cr from about -₹71 Cr in Q1 FY27 — the wrong direction relative to management's stated 12-18 month path to positive EBITDA/EBIT laid out on the Q1 FY27 call. Management gives no formal numeric FY27 revenue or margin guidance by policy, and this filing — a board-outcome letter with financial statements and auditor review reports only — contains no press release or MD commentary to grade against prior qualitative guidance (BSNL 4G ramp, AMC revenue contribution, 6G/S-band DWDM roadmap). The quarter's only confirmed corporate development tying to the numbers is the ₹1,537 Cr BSNL 4G RAN Letter of Intent via TCS (Aug 27) for roughly 18,685 sites — a pipeline builder that has not yet shown up as revenue acceleration, since quarter-on-quarter growth was near zero. Finance costs rose to ₹105.14 Cr from ₹85.07 Cr in Q1 FY27, consistent with rising working-capital borrowings (current borrowings up to ₹3,672.95 Cr from ₹3,483.64 Cr at FY26-end) funding BSNL-related inventory and receivables, adding further pressure beneath the operating line. Going into Q3 FY27, the key test is whether BSNL order execution — including the still-pending 26,000-site 4G expansion — finally shows up as revenue growth beyond the current ~₹406 Cr/quarter plateau, and whether provisioning levels (which eased sharply this quarter) stay low or snap back.