This Tata stock tanks 50% in a year as earnings take a hit; do you own?

Tejas Networks Share Price: It has been a tough year for Tejas Networks Limited. The stock has dropped about 50 per cent over the past 12 months, even as the broader market held up. In comparison, the Nifty 50 has gained around 3.7 per cent during the same period.

The gap reflects the pressure the company is facing, which has now shown up clearly in its latest quarterly numbers.

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Quarterly loss widens

In the March quarter, Tejas Networks Limited reported a net loss of Rs 211.3 crore. A year ago, the loss for the same quarter stood at Rs 71.8 crore.

The jump in losses indicates that the business did not see enough revenue to cover costs during the period.

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Revenue takes a sharp hit

Revenue for the quarter came in at Rs 332.7 crore, down from Rs 1,906.9 crore a year earlier. That is a drop of more than 80 per cent.

Such a steep fall usually points to fewer orders being executed during the quarter. In telecom equipment, revenue often depends on when projects are delivered, and this time the flow appears to have slowed.

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Full-year picture turns weak

The trend is visible in the full-year numbers as well. For FY2026, Tejas Networks Limited posted a net loss of Rs 909 crore. In the previous financial year, the company had reported a profit of Rs 447 crore.

Revenue for the year stood at Rs 1,103 crore, showing that business activity remained weak through much of the year.

Order book shows some improvement

One area that offers some support is the order book. At the end of March, it stood at Rs 1,514 crore, up 49 per cent from last year.

This means there is work lined up, but it will take time to convert into revenue.

Debt remains on the higher side

The company’s balance sheet also reflects pressure. Net debt stood at Rs 3,531 crore, while gross debt was at Rs 4,035 crore.

With earnings under strain, managing this level of debt becomes an important factor going forward.

Push into global markets

On the business front, Tejas Networks Limited is trying to expand outside India. During the quarter, it secured its first commercial order for 4G and 5G wireless products in international markets.

It also signed a deal with NEC Corporation to supply 5G Massive MIMO radios. In addition, the company completed trials of its 5G products with a telecom operator in the United States.

These steps show an effort to build new revenue streams.

What lies ahead

For now, the numbers point to a business going through a difficult phase. The order book and overseas opportunities could help, but much will depend on how quickly projects move and revenue picks up.

Investors are likely to watch the next few quarters closely to see if there are signs of recovery.