Tejas Networks Ltd. (TEJASNET) AI Stock Analysis

• Market Cap: ₹60.51B
• Dividend Yield: 0.55%
• Average Volume (3M): 85.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.71
• Revenue Growth: -17.23%
• EPS Growth: -185.73%
• Country: IN
• Employees: 1,843
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -10.94
• Shares Outstanding: 177,542,770
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: ₹351.00 ▼(-21.87% Downside)

The score is primarily supported by strong revenue growth and improved profitability, but is materially constrained by weak cash flow and rising leverage. Technicals are bearish (below key moving averages with negative MACD), while valuation is mixed due to a negative P/E and only a modest dividend yield.

Positive Factors

Profitability turnaround

A meaningful net margin improvement in 2025 indicates the company has begun converting revenue growth into sustainable bottom-line profits. If maintained, higher profitability strengthens retained earnings, funds reinvestment, and improves solvency, supporting long-term competitive positioning.

Diverse product portfolio

A broad product set across optical transport, broadband access and packet/IP networking gives Tejas multiple addressable markets (metro, backbone, access, enterprise). This diversification reduces single-market dependence and supports durable revenue streams from network upgrades and large capex cycles.

Rising assets and equity

Growth in assets and equity signals reinvestment and balance-sheet capacity to support scaling. A strong equity ratio provides a buffer against shocks, eases access to funding for capex and R&D, and underpins longer-term investment in product development and market expansion.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow undermines internal funding for capex, working capital and R&D. Over months this forces reliance on external financing, increases liquidity risk, and constrains the company’s ability to sustain product investment and scale without higher costs of capital.

Increasing leverage

Rising debt levels reduce financial flexibility and raise interest cost sensitivity, making the company more exposed to rate cycles. Higher leverage can limit strategic options, increase refinancing risk and pressure margins if earnings or cash flow prove volatile in the coming quarters.

Margin volatility

Volatile operating margins signal uneven cost absorption, project mix or pricing pressures. This variability makes earnings and cash flows less predictable, complicating budgeting and capital allocation and potentially reducing investor and customer confidence in consistent service delivery over months.

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

Strong revenue growth and a notable profitability turnaround support the score, but it is held back by negative operating/free cash flow and rising leverage (higher debt-to-equity), which increase liquidity and financial risk.

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: 449.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 449.25 is above the 20-day moving average (MA) of 365.04, above the 50-day MA of 429.77, and below the 200-day MA of 587.59, indicating a bearish trend. The MACD of -34.58 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 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	₹72.31B	34.50	―	―	5.96%	10.11%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NAZARA	60 Neutral	₹105.49B	124.38	―	―	80.00%	10.90%
TEJASNET	57 Neutral	₹60.51B	-7.89	―	0.55%	-17.23%	-185.73%
HFCL	56 Neutral	₹104.95B	341.07	―	0.15%	-19.16%	-92.64%
STLTECH	53 Neutral	₹51.89B	-120.63	―	―	-14.27%	78.52%
ASTRAMICRO	51 Neutral	₹93.24B	56.85	―	0.24%	11.44%	23.56%

Tejas Networks Ltd. Corporate Events

Tejas Networks Posts Q3 FY26 Earnings Call Audio on Company Website

Tejas Networks Limited has notified the stock exchanges that it held its earnings call for the third quarter of FY26 on 9 January 2026. The company has made the audio recording of this earnings call available on its website, enhancing disclosure and access to information for investors and other stakeholders.

Tejas Networks Files Unaudited Q3 FY26 Results with Stock Exchanges

Tejas Networks Limited has notified the stock exchanges that it has issued a press release containing its unaudited financial results for the quarter and nine months ended December 31, 2025. The disclosure underscores the company’s ongoing financial reporting and regulatory compliance, providing investors and other stakeholders with updated performance information for the Q3 FY26 period, which may influence market perception of the company’s operational momentum and near-term outlook.

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.