• Signed agreement with NEC to manufacture and supply 5G massive MIMO radios for global customer, with revenues expected in FY27
• Received initial order for 4G network expansion from customer in South Asia
• Completed shipment of IP and MPLS routers to Bharatnet Phase 3, largest supplier by number of circles
• Selected to build nationwide multi-terabit data network for hyperscaler data center application in India
• Filed 147 patents in FY26, bringing cumulative count to 676 (371 granted); made 150+ contributions to 3GPP standards
• Received PLI incentives of ₹69 crores in FY25, reaching total of ₹469 crores
• Launched 64TR massive MIMO 5G radio, C+L band WDM system (76 terabytes capacity), cloud-native converged 4G/5G core, and hyperscalable DCI platform
• Order book grew to ₹1,514 crores (end Q4 FY26) from ₹1,019 crores (end Q4 FY25), 88% from India business

Tejas Networks reported a deeply disappointing FY26 with revenues of ₹1,103 crores (down from previous year's BSNL-driven surge) and a net loss of ₹909 crores. While management emphasized significant R&D investments (147 patents filed), product launches (5G massive MIMO, hyperscale DCI platforms), and initial international wireless wins, they provided no specific revenue guidance for FY27 despite acknowledging the urgent need for financial turnaround. The balance sheet remains strained with ₹3,258 crores in receivables, ₹2,438 crores in inventory, and ₹3,531 crores in net debt.

Q4 FY26 revenue was ₹333 crores versus ₹307 crores in Q3 (8% QoQ growth), with full year FY26 revenue at ₹1,103 crores representing significant decline from FY25's BSNL-driven peak. Net loss for Q4 was ₹211 crores versus ₹197 crores in Q3, with full year loss of ₹909 crores. EBIT for Q4 was negative ₹219 crores versus negative ₹239 crores in Q3. The balance sheet showed severe strain with inventory at ₹2,438 crores (up from ₹2,360 crores in Q3), receivables at ₹3,258 crores, payables at ₹478 crores, cash position of ₹505 crores, and gross borrowings of ₹4,035 crores leading to net debt of ₹3,531 crores. Intangibles under development increased substantially from ₹400 crores to ₹960 crores, primarily due to product development and NEC technology licensing (approximately ₹550 crores). Revenue mix was 88% India-dominated.

Management adopted a defensive yet hopeful tone, acknowledging FY26 as a 'year of consolidation and transformation' where planned large customer projects for both wireline and wireless were delayed, causing significant revenue shortfall. They emphasized strategic decision to maintain R&D investments despite business shortfall, positioning this as critical for future success. The presentation heavily focused on AI-driven network transformation as a key growth driver, projecting AI traffic will exceed 60% of total network traffic by 2035 and drive a 'super cycle' in network infrastructure buildout. Management repeatedly declined to provide specific revenue or margin guidance (contrary to past practice mentioned by analysts), only stating goal is breakeven in FY27 and positive cash flow in FY28. Leadership changes were significant: Arnab Broy appointed MD & CEO (through 2028), new COO and CFO appointments announced, and board changes including new independent director. Management emphasized current cost structure is aligned for better FY27 results but will be 'optimized' based on business progress.

Primary challenge is severe working capital stress with ₹3,258 crores in receivables (approximately 3x annual revenue) primarily from BSNL 4G project, though management expects 'significant' collections in FY27. The awaited BSNL add-on order for 18,000 sites remains unsigned despite inventory already procured, creating inventory risk of ₹2,438 crores. Memory and chip price escalations are impacting product margins, requiring price renegotiations with customers. The company is debt-funding its R&D investments (₹960 crores in intangibles under development) with ₹3,531 crores net debt while generating only ₹135 crores operating cash in FY26, raising sustainability concerns. Revenue concentration risk remains high with 88% from India. International wireless expansion, while promising, has generated only initial small orders despite significant investment. The company's path to profitability is unclear - management refused to commit to specific FY27 profitability targets despite investor pressure. Competitive risks in wireless from established global players and technology obsolescence risks given rapid AI-driven network evolution. Management acknowledged DSO elongation and collections linked to milestone-based contracts.

Revenue Outlook: No specific guidance provided. Management stated they 'never give revenue or financial number guidance' and declined multiple analyst requests. Only mentioned 'positive business outlook' and 'expect to see growth' with investments made for 'business which is several multiples of FY26'

Margin Outlook: No specific margin guidance. Acknowledged memory/chip price inflation impacting margins but stated renegotiating prices with customers. Goal is 'better financial results' in FY27 with current cost structure

Key Targets:

• Breakeven targeted for FY27 (stated as 'goal' not commitment)
• Positive cash flow targeted for FY28
• Significant BSNL receivables collection expected in FY27
• Inventory reduction expected as orders materialize
• NEC massive MIMO radio revenue expected in FY27
• BSNL add-on order (18,000 sites) delivery timeline 'much faster' than original if/when received

The Q&A session revealed significant investor anxiety about Tejas Networks' financial sustainability and management's credibility. Analysts persistently pressed for revenue guidance, profitability timelines, and specifics on key deals, but management repeatedly declined to provide concrete numbers beyond vague statements about 'better results' and 'positive outlook.' Multiple analysts expressed frustration with the lack of transparency, with one stating shareholders' money is 'being taken for granted' and another questioning the sustainability of debt-funding R&D while burning cash. Key concerns centered on: (1) the ₹3,258cr receivables from BSNL and whether collections will actually materialize in FY27, (2) the unsigned BSNL add-on order creating inventory risk, (3) the path and timeline to profitability given structural losses, and (4) whether international wireless wins are material enough to offset domestic business challenges. Management's responses were defensive, emphasizing FY26 as a 'transition year' and highlighting technology investments and AI-driven future opportunities, but failing to provide the specificity investors sought. The tone suggested management is banking on FY27 order conversions to validate their investment strategy, but lacks confidence to commit to specific targets. Analysts also criticized the one-hour delay in starting the call and inadequate time to review materials.