Tejas Networks Ltd. (CMP ₹527.00, NSE: TEJASNET)
The SmartWay Research Desk | 6 August 2026

A Bengaluru‑based telecom and networking equipment company, incorporated in 2000. Tejas Networks designs and manufactures optical networking, broadband, and wireless products, serving telecom operators, ISPs, government projects, and global clients.

Promoter Holding (Mar 2026): Tata Sons (Panatone Finvest Ltd.) — 52.9% stake (no pledges)

FY22–FY26 Snapshot
Revenue Growth: FY26 revenue ₹4,842 Cr vs ₹3,912 Cr in FY25 (+23.8% YoY). → Good

Net Profit: FY26 PAT ₹412 Cr vs ₹312 Cr in FY25 (+32.1% YoY). → Good

Operating Margin: FY26 EBITDA ₹812 Cr, margin 16.8% vs 15.2% last year (+160 bps). → Good

Equity Capital: Stable, face value ₹10. → Good

Dividend Policy: Dividend ₹5.00/share declared for FY26. → Good

Asset Building: Investments in 5G equipment, optical fiber expansion, and R&D labs. → Good

Sales: Strong demand from BSNL, Tata group synergies, and export markets. → Good

Expense: R&D and component costs remain high. → Neutral/Good

EPS: FY26 EPS ₹12.25 vs ₹9.30 last year (+31.7%). → Good

Institutional Interest & Ownership Trends (Mar 2026)
Promoter Holding: 52.9% (no pledges)

FII Holding: 18.12%

DII Holding: 20.34%

Retail & Others: 8.64%

Strategic Moves & Innovations
Expansion in 5G telecom equipment manufacturing.

Focus on optical networking and broadband solutions.

Partnerships with BSNL, Tata Communications, and global operators.

Diversification into defense communication and satellite connectivity.

Cash Flow & Balance Sheet Strength
Market cap ~₹14,800 Cr.

Debt‑to‑equity ratio ~0.32 (moderate leverage).

Book value per share ₹182.40; P/B ~2.9.

EPS (TTM) ₹12.25; P/E ~43.0.

Risk Factors
High P/E ratio ~43.0, valuations expensive.

Dependence on government contracts and telecom capex cycles.

Exposure to global semiconductor supply chain risks.

Competition from Sterlite Tech, HFCL, and Nokia India.

Investor Takeaway
Tejas Networks has delivered strong FY26 performance, supported by 5G rollout, optical networking demand, and Tata group synergies. With promoter backing, dividend payouts, and leadership in telecom equipment, Tejas remains a mid‑cap telecom technology play. At CMP ₹527.00, valuations are expensive (P/E ~43.0, P/B ~2.9), reflecting growth expectations but also sectoral risks.