55% growth fueled by BSNL, but losses widen; profitability timeline under pressure

Delivered ₹405.7 Cr vs ₹262 Cr in Q2 FY26 = 54.9% growth

PAT loss ₹206.9 Cr vs ₹307 Cr = 32.6% improvement, confirmed

Statement aligns with loss reduction trajectory, not independently verified

Order book shows ₹2,315 Cr (up from ₹1,529 Cr), ₹1,500 Cr attributed to BSNL per MD

Inventory ₹2,314 Cr remains high; receivables reduction dependent on BSNL payment flow

EBITDA still ₹108 Cr negative with ₹207 Cr loss; timeline vague and aggressive given burn rate

₹1,500 Cr BSNL 4G expansion order (18,685 sites) received; prior Q1 call mentioned BSNL 4G expected in Q1 FY27, but order book now reflects it.

Order book ₹2,315 Cr vs ₹1,529 Cr in Q1 (51% QoQ growth); prior call had no quantified order book target, only 'strong visibility.'

New pan-African Tier 1 telco customer for optical, 5G RAN POCs in Americas/Asia Pacific; prior call mentioned intent but no named customer wins.

Q1 guidance: 'Path to positive EBITDA in 12–18 months, then PAT.' Q2 call says 'coming quarters' for EBITDA—timeline not explicitly extended but Q2 EBITDA loss -₹108 Cr suggests slippage risk.

Milestone deliveries on track; significant collections expected this quarter as we hit payment milestones. ₹1,500 Cr order not fully in order book yet—will come as POs arrive—but most expected by quarter-end.

We target emerging markets in next expansion phase, Tier 1/2 operators with custom requirements. POCs underway in Americas and Asia Pacific. Smaller, more responsive operators are our initial market; larger incumbents move slower.

We are radio development partner for many future radios. NEC partnership includes licensing massive MIMO 5G tech and supplying to their customers. Joint solutions approach—we provide radio; they provide core/CU/DU.

One-time provisioning in September 2025 for the first 100K BSNL units; not in Q2 current quarter. Gross margins expected to improve as volume ramps.

Data center interconnect is part of our newer optimized product portfolio. Railway trial in 700 MHz for Kavach (internal comms). Data center market important focus, with several existing customer wins already deployed.

Multiple POCs underway with Tier 1 and Tier 2 operators in Americas and Asia Pacific. POCs are for vendor qualification for next expansion phase. We are testing across multiple bands with custom radio requirements.

Not as system integrator; we are radio/broadcast head vendor. If the RFP happens, system integrators will participate. We are well-positioned as a vendor; we will not be the system integrator.

We licensed massive MIMO 5G radio tech from NEC and are supplying to their customers. Also developing new generation radios based on tech with changes we made. Supplying both to existing NEC customers and new ones; cannot comment on revenue numbers.

Order book ₹2,315 Cr provides multi-quarter visibility; BSNL 4G roll-out timing is government-dependent. Non-BSNL orders ~₹800 Cr also visible.

Current EBITDA -₹108 Cr in Q2. Management cites inventory reduction and cost control post-BSNL ramp, but timeline is vague and execution risk is material.

No quantified path provided. PAT currently -₹207 Cr (NPM -50%). Requires both margin expansion and EBITDA positivity; highly speculative at current burn rate.

Management confirmed strategic focus on next-gen wireless tech and data center interconnect product development. Capex is ongoing but no quantified target disclosed.

BSNL represents ₹1,500 Cr of ₹2,315 Cr order book (65% concentration). Payment dependent on government budget releases and BSNL cash flow. Delay cascades to inventory, debt, and receivables.

Inventory ₹2,314 Cr (flat QoQ, 5.7x Q2 revenue annualized) built for BSNL order. If BSNL delays execution or payment, inventory becomes a cash drain and balance sheet deteriorates.

Q1 FY27 guidance promised 'path to positive EBITDA in 12–18 months.' Q2 shows -₹108 Cr EBITDA loss and -₹207 Cr PAT loss. Management now says 'coming quarters' for EBITDA (vague) and 'upcoming years' for PAT, suggesting timeline extension.

International POCs are in early qualification phase (vendor selection for next expansion). No confirmed orders or timelines. Emerging market telcos (Tier 1/2 in Americas, Asia Pacific) are high-risk credit and may delay capex or pivot vendors.

5G Advanced, 6G, and AI RAN are long-term bets (6G commercial 2029). Current product portfolio is undifferentiated; margins compressed despite 55% revenue growth. Competitive pressure from Ericsson, Nokia, Samsung.