Tejas Networks Q2 loss narrows as revenue rises 55 per cent

MUMBAI: Tejas Networks may still be in the red, but its latest numbers show the loss is losing some of its sting. The Tata enterprise reported a narrower consolidated net loss for the quarter ended 30 September 2026, as revenue from operations climbed sharply from a year earlier.

The company’s consolidated net loss after tax stood at Rs 206.94 crore in the July-September quarter, compared with Rs 307.13 crore in the corresponding quarter last year. Revenue from operations rose to Rs 405.68 crore from Rs 261.82 crore, an increase of around 55 per cent year on year.

The results, approved by the company’s board on 16 October, indicate an improvement in revenue and the bottom line compared with the year-ago quarter. However, expenses continued to exceed income, leaving the telecom equipment maker with a substantial quarterly loss.

Total consolidated income, including other income, increased to Rs 413.45 crore from Rs 267.83 crore in the year-ago period. Total expenses, meanwhile, declined to Rs 690.33 crore from Rs 740.82 crore. The resulting loss before tax narrowed to Rs 276.88 crore from Rs 472.99 crore a year earlier.

The improvement was also visible in the company’s standalone results. Tejas Networks reported standalone revenue from operations of Rs 404.91 crore for the quarter, compared with Rs 261.37 crore in the September 2025 quarter. Total standalone income rose to Rs 412.72 crore from Rs 267.38 crore.

Standalone net loss after tax narrowed to Rs 207.77 crore from Rs 307.17 crore, while the loss before tax reduced to Rs 277.71 crore from Rs 473.03 crore. Total standalone expenses came in at Rs 690.43 crore, down from Rs 740.41 crore in the corresponding quarter last year.

The latest quarter also showed a modest sequential increase in revenue. Consolidated revenue from operations rose from Rs 402.16 crore in the June 2026 quarter to Rs 405.68 crore in September. Standalone revenue from operations similarly edged up from Rs 401.95 crore to Rs 404.91 crore.

The loss, however, remained significant. Consolidated finance costs stood at Rs 86.53 crore in the September quarter, compared with Rs 84.32 crore a year earlier. Depreciation and amortisation expenses were Rs 91.48 crore, against Rs 100.98 crore in the year-ago period. Employee benefit expenses increased to Rs 105.14 crore from Rs 94.35 crore.

On a standalone basis, finance costs rose to Rs 86.50 crore from Rs 84.26 crore, while employee benefit expenses increased to Rs 100.84 crore from Rs 91.09 crore. Depreciation and amortisation expenses, by contrast, declined to Rs 91.48 crore from Rs 100.98 crore.

One notable movement was the allowance for expected credit losses. Tejas Networks recorded a negative expense of Rs 10.55 crore on a consolidated basis in the quarter, compared with an expense of Rs 15.58 crore in the year-ago period. The standalone statement reported the same movement, from an expense of Rs 15.58 crore to a negative expense of Rs 10.55 crore.

The six-month figures underline the pressure on earnings despite the stronger quarterly revenue. For the six months ended 30 September 2026, consolidated revenue from operations reached Rs 807.84 crore, compared with Rs 463.80 crore in the corresponding period last year. Yet the company recorded a consolidated net loss of Rs 409.18 crore, against Rs 501 crore in the first half of the previous financial year.

Consolidated loss before tax for the six-month period stood at Rs 547.69 crore, compared with Rs 770.34 crore a year earlier. Total expenses rose to Rs 1,372.27 crore from Rs 1,249.70 crore, reflecting the higher cost base over the period.

The standalone numbers followed a similar trajectory. Revenue from operations for the six months rose to Rs 806.86 crore from Rs 463.30 crore. The standalone net loss narrowed to Rs 410.01 crore from Rs 501.08 crore, while the loss before tax reduced to Rs 548.52 crore from Rs 770.41 crore. Total expenses increased to Rs 1,372.16 crore from Rs 1,249.27 crore.

For context, Tejas Networks reported a consolidated net loss of Rs 908.89 crore for the full financial year ended March 2026, on revenue from operations of Rs 1,103.28 crore. Its standalone net loss for the same year was Rs 916.43 crore, with revenue from operations of Rs 1,100.78 crore.

The balance sheet also reflects changes in the company’s asset and borrowing position. As of 30 September 2026, standalone total assets stood at Rs 8,440.67 crore, down from Rs 9,403.74 crore at 31 March 2026. Total equity declined to Rs 2,527.57 crore from Rs 2,931.71 crore.

Standalone borrowings comprised Rs 1,162.40 crore in non-current borrowings and Rs 3,672.95 crore in current borrowings at the end of September. At the end of March, the corresponding figures were Rs 551.83 crore and Rs 3,483.64 crore. Cash and cash equivalents stood at Rs 102.85 crore, compared with Rs 94.88 crore at the previous financial year-end.

The company’s unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2026 were reviewed by Price Waterhouse Chartered Accountants LLP. The auditor’s limited review reports state that the reviews were conducted under the applicable regulatory and accounting requirements and that nothing had come to the auditors’ attention to indicate that the statements were materially misstated.

Tejas Networks’ second-quarter performance therefore presents a mixed picture: revenue has grown strongly and losses have narrowed against the previous year, but the company remains loss-making, with expenses continuing to outweigh income. Whether the improvement can be sustained will be an important measure of its financial performance in the quarters ahead.