Tejas Networks has faced a significant setback as its share price plummeted over 15% following the release of its fourth-quarter financial results, revealing a net loss. This downturn saw shares drop to ₹726.10 on the Bombay Stock Exchange (BSE), raising concerns among investors and analysts alike.
Significant Losses in Q4 FY25
In the fourth quarter of FY25, Tejas Networks reported a net loss of ₹71.8 crore, a stark contrast to the net profit of ₹146.8 crore recorded in the same quarter the previous year. The company attributed this loss to higher expenditures in research and development (R&D) and one-off charges related to inventory and R&D costs.
- Net loss: ₹71.8 crore
- Previous year’s profit: ₹146.8 crore
- Factors: Increased R&D investments, one-time charges
Despite these challenges, Tejas Networks experienced a 43.7% year-on-year increase in revenue, reaching ₹1,906.9 crore, up from ₹1,326.9 crore in the previous year.
Declining EBITDA and Margins
The company’s operating performance also took a hit, with EBITDA for the quarter ending in March 2025 falling by 60.7% to ₹121.5 crore, down from ₹309.3 crore in the same period last year. This decline resulted in a drop in the EBITDA margin to 6.4%, down from 23.3% year-over-year.
- EBITDA: ₹121.5 crore (down 60.7%)
- EBITDA margin: 6.4% (down from 23.3%)
According to Sumit Dhingra, the Chief Financial Officer of Tejas Networks, “We concluded the quarter with an order book amounting to ₹1,019 crore and reported a net loss of ₹72 crore, primarily due to augmented investments in R&D and one-time charges. We closed FY25 with total revenue of ₹8,923 crore and a net profit of ₹447 crore, showcasing substantial growth compared to FY24.”
Share Price Performance
Tejas Networks’ stock has not fared well in recent months, experiencing a 2% decline over the past month, and a staggering 38% drop over the last half-year. Year-to-date, the stock is down 35%, and over the past year, it has decreased by 25%.
- 1-month decline: 2%
- 6-month decline: 38%
- YTD decline: 35%
- 1-year decline: 25%
Despite these recent challenges, the stock has delivered remarkable returns over the last five years, boasting an impressive 1,925% increase.
As of 9:45 AM, Tejas Networks shares were trading at ₹769.95, reflecting a 10.46% decrease on the BSE. Investors are keenly watching how the company will navigate these turbulent waters moving forward.
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