Strong R&D momentum masked by severe cash burn and unmet profitability claims

PAT -₹202 Cr, worsened 4.3% YoY, still deeply negative

Revenue +21% QoQ (verified), PBT -271 Cr (vs -281, marginal 10 Cr improvement), inventory down 80 Cr

Europe 5G radios, South America end-to-end, NEC partnership confirmed but all early-stage pilots

Net receivables jumped ₹327 Cr to ₹2,232 Cr; no clearing evident, opposite of claim

₹1,529 Cr vs ₹1,514 Cr (+₹15 Cr, +1% growth)

First Europe 5G customer, South America end-to-end deployment, NEC preferred partner announced—moves from 100% domestic to 7% international order book. But all early-stage pilots; sizes unconfirmed.

FY26 call promised 'much better results' and 'rapid profitability'; Q1 still -₹202 Cr loss. Now claims 12-18 months to EBITDA (vs earlier 'rapid'), pushing recovery to likely H2 FY28.

Moved ₹1,905 Cr (Q4) to ₹2,232 Cr (Q1) despite no new large order awarded. Analyst noted non-BSNL segment also showing sticky collections, not just BSNL.

₹1,529 Cr vs ₹1,514 Cr (+1% growth). Domestic wins offset some international; growth minimal despite bullish talk.

Yes, acceptance tests near closure, pending features being delivered. Expect BSNL receivables to clear during quarter as expansion project moves along.

All for TSPs (mobile network services). Cannot quantify sites due to customer confidentiality; emphasis on reference value and expansion potential.

Preferred partner (not exclusive) for 5G radios and beyond. Do not have NEC market size numbers; they have significant business in Japan and Europe.

No performance linkage; products already proven in extensive POC. Standard 60-90 day payment terms, same as other customers.

Grow business, leverage OEM partnerships (NEC), optimize OpEx. First target: positive EBITDA/EBIT, then PAT. Yes, 12-18 months is reasonable.

Non-BSNL also had collections. Increased shipments of this quarter went into receivables, that is the reason.

Warranty due to large BSNL deployment (fault rates, cumulative installed base). Will normalize as field experience matures. BSNL is strategic POC for 5G reference.

₹1,529 Cr (vs ₹1,514 Cr Q4). 93% domestic, 7% international. Expansion order NOT in backlog yet. Includes service revenue aims and existing POs.

Waiting for Prasar Bharati tender. Will partner with SI (FreeStream or others). TAM could be ~$1B if nationwide rollout. Only our equipment completed POC trials.

AMC revenues recognized over 8 years when they start. Haven't shared AMC numbers (will share when materialized). Yes, higher margins, will help profitability in next few quarters.

Continuous evolution: 4G to 5G (now commercializing with initial wins) to 5G-Advanced/6G to next iteration. Not one-off product; ongoing process.

Wireless: efficient high-performing radios, integrated BBU. Wireline: strong access (FTTx), state-of-art optical (power/density), DCI Leading Lights finalist. Differentiators built-in.

No; current sales will improve but also need higher-capacity products (access and core) as networks scale for AI-driven traffic.

1.6T already supported in deployed products (customers test at peak performance). DCI TJ1600-D3 at initial customer engagements, field trials through FY27, deployment end FY27 or early FY28.

6G commercial ~2030, product 2029. 256 TR massive MIMO first; spectrum and standards needed. S-band DWDM 2029-30. Roughly 2029-30 for major upgrades.

Edge router is routing product (no AI engine), for edge network scalability and AI inferencing infrastructure connectivity (high BW, low latency). Expected consistent revenue growth FY27-30/31 as R&D pays off.

Management stated no quantitative guidance for FY27. Qualitative: expect revenue growth from new wins and BSNL expansion.

No quantified bridge. Depends on BSNL expansion, international ramp, cost control, and AMC revenue start (next few quarters). Highly contingent.

Qualitatively confirmed but no specific margin target disclosed. AMC size and start timeline also unquantified.

Employee costs flat for 'some more time'; capex ongoing but quantum unspecified. Strategic commitment but no capex budget given.

Net receivables jumped ₹327 Cr to ₹2,232 Cr on only ₹402 Cr quarterly revenue (111 DaysOutstanding). Even non-BSNL segments showing sticky collections. Inventory remains ₹2,358 Cr despite supposed unwinding. High leverage and negative earnings make this unsustainable.

BSNL 4G expansion (26,000 sites, ~₹1 Lakh) is critical to inventory unwind and receivables recovery. Order is in 'final stages' and expected 'very soon, probably in this quarter' but NOT YET AWARDED. Any delay extends profitability recovery. No guaranteed economics disclosed.

Management claims path to positive EBITDA/EBIT in 12-18 months (end H2 FY28). No quantified bridge provided. Current PAT is -₹202 Cr with -49% NPM. Achieving profitability requires (i) BSNL order award, (ii) margin improvement, (iii) international volume ramp, AND (iv) AMC revenue start (won't begin for several quarters). Any slip extends profitability further.

Inventory at ₹2,358 Cr (down ₹80 Cr QoQ) attributed to advance procurement for BSNL expansion and customer orders. If expansion is delayed/cancelled or if older-gen products (4G radios, earlier optical specs) become obsolete due to 5G/6G acceleration, inventory could face write-downs or forced discount sales.

South America end-to-end order is 'initial order' post-POC; operators build networks in phases. Europe 5G customer is 'first significant' win but volume unconfirmed. NEC is 'preferred partner' (not exclusive). All are early-stage pilots. International order book only 7% of total (₹107 Cr of ₹1,529 Cr). Volume and margin visibility low.

Net debt ₹4,277 Cr, gross borrowings ₹4,866 Cr on a loss-making balance sheet. Finance costs are a drag on path to profitability. Negative cash earnings and high leverage increase refinancing risk if credit markets tighten or if profitability recovery is delayed.

Company investing heavily in R&D (6G, 5G-Advanced, DWDM evolution) while loss-making. If profitability is further delayed, pressure to cut R&D could arise, delaying next-gen product launches (6G 2029, S-band 2029-30). However, management signaled commitment to continue R&D spend and kept employee costs flat.