Recovery in Motion: Tejas Networks Q2 FY27 Revenue Ramp amid BSNL Order Fulfillment
After FY26's transition year and Q1 FY27's sharp revenue rebound, Tejas Networks reports Q2 FY27 on October 16. Expect momentum in BSNL 4G supply, but watch for loss improvement and full-year guidance confidence.
The Setup: Transition to Scale
Tejas Networks is emerging from FY26—a year defined by the completion of a massive BSNL legacy 4G project and cascading delays across large customer orders. Q1 FY27, which reported in late July, marked the inflection: revenue jumped 99% YoY to ₹402 Cr, but the company swung to a ₹202 Cr net loss, reflecting the typical loss-making phase as it scales supply for new orders. The real test is whether Q2 FY27 sustains this revenue trajectory while beginning to control loss expansion.
~₹430–₹480 Cr
Sequential growth from Q1's ₹402 Cr base; BSNL RAN supply flow-through expected
Loss likely continues
Order scaling phase; watch for margin of loss—improvement vs. Q1's ₹202 Cr key signal
Expected reconfirm
Company will signal confidence in 4G order pipeline and cost absorption
BSNL PO timing
Delayed POs hurt Q1 FY26; smooth flow in Q2 FY27 would beat expectations
On Track to Recovery?
The FY26 loss of ₹909 Cr was largely a project-completion cliff (the legacy BSNL job finished, the new order pipeline stalled). Q1 FY27's 99% revenue rebound, despite the ₹202 Cr loss, proves demand is intact—the loss is a scaling tax, not a demand collapse. For Q2 to be 'on plan,' expect: (1) revenue to hold above ₹400 Cr and ideally inch higher as BSNL RAN fulfillment ramps; (2) the loss to either narrow or stabilize around ₹150–₹200 Cr as operating leverage kicks in; and (3) management to reaffirm that FY27 is a transition year, with breakeven or profit visibility by FY28. Any guidance downgrade would be a red flag.
What the Street Sees
Since Last Quarter: Key Filings & Moves
1 · BSNL ₹1,537 Cr 4G RAN Deal (Aug 27)
Tejas received a Letter of Intent from TCS for RAN equipment supply across 18,685 BSNL 4G sites. This is the order that Q1 guidance flagged. Flow-through into Q2 and beyond is the linchpin of the recovery narrative. Watch: management commentary on delivery timing and cost margins on the deal.
2 · 6G ISAC Technology Demo (Oct 8)
Tejas and Qualcomm jointly demonstrated Integrated Sensing and Communications (ISAC) tech at India Mobile Congress 2026. Forward-looking, but immaterial to Q2 results. Signals R&D capability and future differentiation—longer-term competitive moat, not a Q2 driver.
3 · RSU Allotment (Sep 25)
43,418 equity shares allotted on employee RSU exercise. Routine; no material impact.
4 · Trading Window Closure (Sep 11)
Standard insider trading restriction ahead of results. No signal to read.
5 · FII/DII Activity: Steady Holding
FII ownership rose 0.53pp QoQ to 5.82% (Q1 FY27); DII down 0.28pp to 4.04%. Promoter stable at 53.33%. Bulk block deals in Sep show dealer/hedge activity (QE Securities, Jump Trading, HRTI) around ₹607–₹611—coinciding with the price decline from ₹644 ATH. No material insider selling or pledging noted.
The Close: What to Watch on Result Day
Tejas Networks reports Q2 FY27 on October 16 into an oversold stock (RSI 25.2, down 29% from ATH) with consensus upside to ₹1,100. The company is transitioning from a FY26 loss cycle into a multi-quarter ramp-up of BSNL order fulfillment. Q2 is the inflection proof point. Watch three things: (1) Revenue trajectory—does it sustain above ₹400 Cr and move higher on BSNL flow? (2) Loss improvement—as scaling begins, does the loss narrow or stabilize? (3) FY27 full-year guidance—will management reaffirm or trim? Any upside beat on revenue, loss control, and guidance confidence could unlock the 28–40% Street consensus upside.