Earnings call transcript for Q1 FY 27

August 03, 2026 The Secretary The Secretary National Stock Exchange of India Ltd BSE Limited Exchange Plaza, C/1, Block G, P J Towers, Bandra Kurla Complex, Bandra (East) Dalal Street, Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: TEJASNET BSE Scrip Code: 540595 Dear Sir/Madam, Re: Q1 FY27 Earnings Conference Call – Transcript Please find enclosed the transcript of the Q1 FY27 Earnings Conference Call held on July 28, 2026. This is for your kind information and record. Yours sincerely, For Tejas Networks Limited Anantha Murthy N Company Secretary & Compliance Officer “Tejas Networks Limited Q1 FY27 Earnings Conference Call” July 28, 2026 MANAGEMENT: MR. ARNOB ROY – MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER – TEJAS NETWORKS LIMITED MR. AVS PRASAD – CHIEF FINANCIAL OFFICER – TEJAS NETWORKS LIMITED DR. KUMAR N. SIVARAJAN – CHIEF TECHNOLOGY OFFICER – TEJAS NETWORKS LIMITED MR. PREETHAM UTHAIAH – CHIEF OPERATING OFFICER – TEJAS NETWORKS LIMITED MODERATOR: MR. MOHIT – ICICI SECURITIES Tejas Networks Limited July 28, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Tejas Networks Limited Q1 FY27 Earnings Conference Call, hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Mohit from ICICI Securities Limited. Thank you, and over to you, sir. Mohit: Thank you, Anushka. Good morning, everyone. Thank you for joining on the Q1 FY27 Earnings Conference Call of Tejas Networks Limited. We have the management of Tejas Networks on this call represented by Mr. Arnob Roy, Managing Director and CEO; Mr. AVS Prasad, CFO; Dr. Kumar N. Sivarajan, CTO; and Mr. Preetham Uthaiah, COO. I would now like to invite Mr. Arnob Roy to initiate with opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir. Arnob Roy: Thank you. Good morning, everyone, and welcome to our earnings call presentation for Q1. So I'll start with our revenues of Q1, which was INR402 crores, 20% growth over Q4. Profit after tax improved slightly and same for order book, which also saw a small growth. In terms of the revenue mix, it was evenly split between India and international, and we'll add some color to that as we get along. From a closing order book, this quarter, most of our business wins were domestic. That's why at the end of the quarter, the order book was 93% domestic and 7% international. In terms of Q1 highlights, our revenues were driven largely by international shipments of 5G radios and domestic shipments of optical and FTTx products. And this international shipment was to a customer in Europe, and this was one of our first significant customer wins for 5G internationally. And the other highlight was our first commercial win for end-to-end 5G network deployment in South America. And end-to-end basically means it's beyond the radios, it's also the baseband unit and the core. So this represents a complete end-to-end Tejas technology stack for our 5G network deployment. The other highlight was we continued with our patent filings and filed 46 patents in Q1, taking our global count to 722. I'll now hand you over to our CFO, AVS Prasad, for walking you through the financial numbers. AVS Prasad: Good morning, everyone. Thanks, Arnob. As indicated, the revenue is around INR402 crores, a 21% quarter-on-quarter increase compared to Q4 of FY26. At the PBT level, PBT is around negative INR271 crores compared to INR281 crores in Q4. Coming to the balance sheet items in terms of inventory, there is a reduction of inventory from the previous level of INR2,438 crores to INR2,358 crores. And as we have been saying earlier, this inventory -- the high levels of inventory are on account of advanced procurements in terms Page 2 Tejas Networks Limited July 28, 2026 of materials for addressing the add-on orders and preparedness to address the other customer requirements. And at net receivable level, the net receivables after the customer advance adjustments currently stand at INR2,232 crores compared to INR1,905 crores. The net working capital increased mainly on account of the net trade receivables increase and also corresponding increased scheduled payouts. The cash position stands at INR589 crores compared to INR505 crores in Q4. On the debt side, the net debt increase is mainly, as what I mentioned earlier, due to net working capital increase as well as increased payouts, and also the company's focus in terms of continued investments in terms of capex. So there's an increase in borrowings. The gross borrowing stands at INR4,866 crores and net borrowings at INR4,277 crores. Arnob Roy: Thanks, Prasad. I'll now take you through some more details about our business for Q1 as well as the outlook. So to give you a little bit more color about Q1, one of the highlights was, as I mentioned, the end-to-end 5G network win for an operator in South America. And the supply of 5G massive MIMO radios to a global customer in partnership with NEC. We were also selected by a global Tier 1 telco for a joint R&D project in 5G. And this has quite a lot of significance for us because successful execution over here, we expect will lead to future increase in our business engagement in terms of product shipments and so on. And lastly, we are still awaiting the expansion order for the BSNL 4G with additional 26,000 sites. There has been a lot of news items about this recently. And I can only comment that it's in the final stages of conclusion in terms of awarding of the order. There is a discussion with our system integration partners regarding the final Ts and Cs and so on. And we expect that this will materialize very soon, probably in this quarter. So as you can see from the first 3 items, international traction for our wireless products and technology is increasing, which is a very encouraging sign for us. In terms of wireline, we continue to expand our market share and business with the Tier 1 Indian telcos for optical as well as FTTx products. And we -- for Tier 1 telco, we expanded our FTTx footprint for the pan-India residential broadband rollout. For 2 other Tier 1s, we supplied our optical equipment, 100-gig, 400-gig DWDM equipment for the 5G backhaul networks for the enterprise services network and also for hyperscaler data center connectivity. The utilities continues to be a strong sector for us, and we were selected as a vendor for the communication network modernization of a large power utility. This has been a very successful business for us, and we continue to win newer business as the utilities keep modernizing their networks from the older TDM/SDH network to a more IP-based network. Internationally, our optical products continued to win additional market share, and this was for an existing customer in Africa, a leading wholesale bandwidth provider. And we did a lot of network expansion for them using our state-of-the-art 100-gig, 400-gig coherent DWDM equipment. Page 3 Tejas Networks Limited July 28, 2026 A few other highlights. Our latest product, which was announced recently, the 1600-D3, the data center interconnect product. It was selected as a global finalist among the top 3 at the prestigious Leading Lights awards for 2026. This is indeed a recognition to be proud of because this is one of the most respected organizations in this field. And the fact that they recognized us among the 2 other global OEMs as one of the most innovative products that were launched. This is actually a significant recognition of our R&D capabilities. We won the Bangalore Chamber of Industry and Commerce award for manufacturing excellence. We signed MoUs with IIT Gandhinagar and Maharashtra IT to catalyze and nurtur [Showing first 8,000 characters — download PDF for full document]