Tejas Networks Ltd. (TEJASNET) AI Stock Analysis

• Market Cap: ₹84.36B
• Dividend Yield: 0.51%
• Average Volume (3M): 85.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -17.23%
• EPS Growth: -185.73%
• Country: IN
• Employees: 1,843
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -17.16
• Shares Outstanding: 177,162,200
• 10 Day Avg. Volume: 89,306
• 30 Day Avg. Volume: 85,756
• PEG Ratio: 0.05
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.56
• P/FCF Ratio: -17.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5,593.22
• Revenue Forecast (FY): ₹6.19T

• Rating: 54 Neutral
• Price Target: ₹550.00 ▲(11.31% Upside)

Tejas Networks Ltd. has strong revenue growth and improved profitability, but faces significant challenges in cash flow management and leverage. The technical indicators suggest a bearish trend, and the valuation metrics indicate potential overvaluation. These factors combined result in a moderate overall stock score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective product adoption, supporting long-term business expansion.

Profitability Improvement

Improved profitability reflects effective cost management and operational efficiency, enhancing financial stability and shareholder value.

Market Presence

Strategic partnerships enhance market presence and drive sales, ensuring sustained demand and competitive advantage in the telecom sector.

Negative Factors

Cash Flow Management

Challenges in cash flow management may limit financial flexibility and investment capacity, posing risks to long-term growth and operations.

Rising Leverage

Increased leverage can heighten financial risk and interest burden, potentially impacting the company's ability to invest and grow sustainably.

Revenue Decline

A decline in revenue growth rate suggests potential market challenges or competitive pressures, which may affect future earnings and market share.

Tejas Networks Ltd. Business Overview & Revenue Model

Company Description

Tejas Networks Limited designs, develops, manufactures, and sells optical, data networking, and wireless products to telecommunications and internet service providers, web-scale internet companies, utility and defense companies, and government entities in India and internationally. It offers TJ1400-1 OLT, a pizza box GPON OLT that provides broadband solutions; TJ1400 OLT, a GPON/XGS-PON based fiber access for FTTH and FTTB services with various end-user ONT devices; and TJ2100N ONT, a series of advanced GPON/XGS-PON ONT elements designed for optical access networks deployed in FTTH and FTTB formats. The company also provides TJ1400, an ultra-converged broadband designed for cost-optimized delivery of mobile backhaul, broadband access, enterprise, and network modernization; TJ1600, an optical transport platform that enables support of applications and services, including mobile backhaul networks, business connectivity, and broadband and access infrastructure; and TJ1270 MSPP, a multi-service provisioning platform. In addition, it offers TJ1400 products designed for access and aggregation applications in the network. Further, the company provides enterprise Ethernet switches, such as TJ1400P-M1 portfolio of Layer2+ switches; TJ1400P M3 and TJ1400P M2 switching products optimized for LAN and metro applications; TJ1400P access routers; and TJ1400, an aggregation/core service router. Additionally, it provides TJ1400-7, an ultra-converged broadband access platform, which supports optical transport with multi-service access and LTE; TJ1602W, a 4G/LTE Macro eNodeB solution on the TJ1600-2 platform; TJ6003W, a 4G/LTE packet core EPC solution; and TJ5500, a network management system. The company was formerly known as Tejas Networks India Limited and changed its name to Tejas Networks Limited in March 2008. Tejas Networks Limited was incorporated in 2000 and is based in Bengaluru, India.

How the Company Makes Money

Tejas Networks generates revenue primarily through the sale of its networking products, which include optical transport and broadband access equipment. The company earns money from both direct sales to telecommunications operators and through partnerships with other technology firms that integrate Tejas' products into their solutions. Additionally, Tejas Networks benefits from service contracts, providing ongoing maintenance and support for its products, which creates a recurring revenue stream. The company has established key partnerships with various telecom operators and government projects, which not only boosts its sales but also enhances its market presence in the rapidly evolving telecommunications landscape.

Tejas Networks Ltd. Financial Statement Overview

Summary

Tejas Networks Ltd. shows strong revenue growth and improved profitability, indicating a positive trajectory. However, challenges in cash flow management and increased leverage present risks. The company should focus on operational efficiency and debt management.

Income Statement

Tejas Networks Ltd. has shown a remarkable growth trajectory in revenue over the years, with significant increases in total revenue from 2021 to 2025. The gross profit margin has remained healthy, indicating good cost management. Net profit margin has improved significantly in 2025 compared to previous years, showcasing a turnaround in profitability. However, the EBIT and EBITDA margins show some volatility, suggesting potential operational challenges.

Balance Sheet

The company's balance sheet reflects a substantial increase in total assets and equity over the years, indicating strong growth. However, the debt-to-equity ratio has increased, reflecting higher leverage and potential risk. The equity ratio remains strong, suggesting financial stability but must be monitored due to rising debt levels.

Cash Flow

Tejas Networks Ltd. faces challenges in cash flow management, as indicated by negative free cash flow in recent years. The operating cash flow has also been negative, which could strain liquidity. Nevertheless, there is potential for improvement if revenue growth continues and cost management is optimized.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	75.62B	89.23B	24.71B	9.22B	5.53B	5.28B
Gross Profit	20.27B	23.81B	8.78B	3.62B	2.42B	2.57B
EBITDA	6.66B	10.50B	1.59B	-646.30M	-1.38B	187.70M
Net Income	1.75B	4.47B	629.80M	-364.10M	-627.10M	375.40M
Balance Sheet
Total Assets	0.00	104.62B	82.03B	36.02B	21.10B	13.12B
Cash, Cash Equivalents and Short-Term Investments	8.16B	8.22B	8.46B	13.05B	10.98B	3.47B
Total Debt	0.00	34.07B	18.84B	498.20M	197.60M	219.00M
Total Liabilities	-38.46B	66.16B	50.53B	6.29B	1.80B	1.78B
Stockholders Equity	38.46B	38.46B	31.49B	29.73B	19.30B	11.34B
Cash Flow
Free Cash Flow	0.00	-8.15B	-24.45B	-6.29B	-1.35B	751.30M
Operating Cash Flow	0.00	-4.91B	-20.36B	-3.80B	-173.30M	1.58B
Investing Cash Flow	0.00	-6.55B	4.31B	-5.81B	-8.28B	-1.67B
Financing Cash Flow	0.00	12.86B	17.13B	9.99B	8.39B	-34.40M

Tejas Networks Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 494.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TEJASNET, the sentiment is Negative. The current price of 494.1 is below the 20-day moving average (MA) of 513.36, below the 50-day MA of 553.57, and below the 200-day MA of 664.62, indicating a bearish trend. The MACD of -17.74 indicates Positive momentum. The RSI at 39.21 is Neutral, neither overbought nor oversold. The STOCH value of 35.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TEJASNET.

Tejas Networks Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RATEGAIN	74 Outperform	₹80.90B	38.37	―	―	5.96%	10.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NAZARA	60 Neutral	₹94.01B	110.84	―	―	80.00%	10.90%
HFCL	56 Neutral	₹111.01B	398.50	―	0.14%	-19.16%	-92.64%
TEJASNET	54 Neutral	₹84.36B	―	―	0.51%	-17.23%	-185.73%
ASTRAMICRO	51 Neutral	₹100.63B	61.89	―	0.23%	11.44%	23.56%
STLTECH	47 Neutral	₹51.49B	―	―	―	-14.27%	78.52%

Tejas Networks Ltd. Corporate Events

Tejas Networks Clarifies Stock Volume Surge Amid Compliance Assurance

Tejas Networks Limited has clarified a recent increase in trading volume of its shares, stating that there is no undisclosed information or announcements that would impact the stock’s price or volume. The company emphasized its compliance with SEBI regulations, suggesting that the volume surge is not linked to any internal developments, thereby maintaining transparency with stakeholders.

Tejas Networks Increases Share Capital Through Employee Stock Option Allotment

Tejas Networks Ltd. has announced the allotment of 289,790 equity shares following the exercise of stock options by eligible employees under various stock option plans. This allotment has resulted in an increase in the company’s paid-up share capital, indicating a potential positive impact on employee motivation and retention, and possibly enhancing the company’s operational capabilities and market position.

Tejas Networks Secures Major 400Gbps Network Upgrade Project with PowerTel

Tejas Networks has been selected by PowerGrid Teleservices (PowerTel) to implement a 400Gbps upgrade of its pan-India DWDM network. This project involves the deployment of Tejas’s advanced TJ1600 DWDM/OTN product, which supports up to 1.2Tbps over a single wavelength and incorporates alien wavelength technology. This collaboration aims to meet the growing demand for high-bandwidth connectivity from various sectors, enhancing Tejas’s position as a leading optical networking supplier.

Tejas Networks Chosen for BharatNet Phase III Project

Tejas Networks has been selected by Nagarjuna Construction Company (NCC) to supply IP/MPLS Routers for the BharatNet Phase III project, which aims to upgrade broadband infrastructure in Madhya Pradesh, Dadra Nagar Haveli, Daman and Diu, and Uttarakhand. This selection underscores Tejas Networks’ position as a leading provider of telecom and networking equipment, enhancing its reputation for handling complex, high-availability networks and contributing to the national goal of bridging the digital divide in India.

Tejas Networks Publishes Postal Ballot Notice in Leading Newspapers

Tejas Networks Ltd. announced the publication of a Notice of Postal Ballot in prominent newspapers, ‘Financial Express’ and ‘Vishwavani’, as part of their ongoing corporate governance practices. This step is indicative of the company’s commitment to transparency and shareholder engagement, potentially impacting its stakeholder relations positively.

Tejas Networks Unveils Next-Gen 5G MIMO Radio at IMC 2025

Tejas Networks Ltd. has launched its indigenously designed 64T64R Massive MIMO Radio, named Ojas64, at the India Mobile Congress 2025. This next-generation 5G Macro radio is capable of delivering up to 320W of output power with multi-gigabit speeds and improved spectral efficiency, while also reducing its carbon footprint. The launch, attended by prominent government officials, marks a significant milestone in India’s telecom product development and showcases the country’s growing capabilities in advanced wireless communications technology.

Tejas Networks Expands Equity Through Employee Stock Options

Tejas Networks Ltd. has announced the allotment of 108,699 equity shares following the exercise of stock options by eligible employees under various stock option plans. This allotment has increased the company’s paid-up share capital, reflecting a strategic move to incentivize employees and potentially enhance operational performance.