Tejas Networks' BSNL order scope jumps 44% from 18,000 to 26,000 sites without explanation
Patents granted also drop from 370 to 300 despite rising filings, raising credibility questions on two key metrics in a single quarter.
What's new
- Q1 FY27 revenue ₹402 cr, up 20% QoQ; PBT loss narrowed to ₹271 cr from ₹281 cr.
- Order book rose to ₹1,529 cr from ₹1,414 cr, excluding BSNL expansion order.
- International revenue split 50:50 with India; first European 5G win and South American end-to-end rollout.
- Net receivables rose to ₹2,232 cr from ₹1,905 cr; net borrowings at ₹4,277 cr.
Themes from the call
Demand
International 5G traction improved, with a European win and a South American end-to-end 5G rollout; wireline demand from Indian telcos and utilities remained strong.
Margins
PBT loss narrowed marginally, but management provided no bridge; prospective margin improvement relies on international mix, cost control and eventual AMC revenue.
Capital allocation
Inventory declined but receivables and borrowings rose; BSNL collection is key to working capital relief, but the order scope change clouds timing and value.
Guidance watch
- BSNL 4G expansion order (now 26,000 sites) expected to materialize this quarter.
- Positive EBITDA targeted first, then net profitability within 12-18 months.
- AMC revenue may begin after site acceptance and warranty expiry, recognized over 8 years.
Risk flags
- 44% order scope increase for BSNL expansion unexplained; creates uncertainty on order value, inventory, and receivables assumptions.
- Patent count reversal (370 to 300) without rationale casts doubt on R&D metric reporting.
- Heavy debt (net borrowings ₹4,277 cr) and rising receivables pressure balance sheet.
- One-off warranty provision from BSNL rollout adds cost volatility.
Key quotes
-
"And finally for the big BSNL 4G add-on PO for the 18,000 sites that we have been working on for quite some time, we have a delay in the receipt of this PO."
— Tejas Networks management, Jan 2026 call -
"We are still awaiting the expansion order for the BSNL 4G project for the additional 26,000 sites. Yes, that is the same expansion order."
— Tejas Networks management, July 2026 call
The brief
Tejas Networks' Q1 FY27 results show a business that is making progress internationally but is held hostage by a single domestic customer. Revenue rose 20% quarter-on-quarter to ₹402 crore, an international 5G win in Europe and a full-stack rollout in South America added credibility to the wireless story, and the order book edged up to ₹1,529 crore. The operating loss narrowed marginally. None of that is the story.
The story is that two key metrics changed materially between the January and July calls without explanation. The pending BSNL 4G expansion order jumped from 18,000 sites to 26,000 sites — a 44% increase. Management confirmed it is the same order but did not reconcile the scope. The company's cumulative granted patents fell from 370 to 300 even as total filings rose from 613 to 722, a reversal that raises questions about how R&D is tracked. Neither was explained.
These inconsistencies matter more than the quarterly numbers because Tejas depends on the BSNL order for revenue visibility, working capital release and credibility with investors. The order remains outside the order book. Receivables have risen to ₹2,232 crore, borrowings to ₹4,277 crore. The path to profitability — positive EBITDA first, then net profit within 12-18 months — is conditional on BSNL acceptance tests, commercial terms and collections.
Management says the order will materialise this quarter. If the 26,000-site scope is accurate, the order value and the balance sheet impact are larger than previously assumed. If the 18,000-site figure was the correct one, the gap needs an explanation. Either way, the silence is the signal.
Tejas needs to clean up its own numbers before investors can trust its guidance on the BSNL order.