Tejas Networks Ltd designs and manufactures high-performance wireline and wireless networking products for telecommunications service providers, internet service providers, utilities, defence, and government entities in over 75 countries.
The company is a part of the Tata group, with Panatone Finvest (a subsidiary of Tata Sons Pvt. Ltd) being the majority shareholder.
In the last month, the stock price has rallied from ₹317.5 on 24 February 2026 to ₹422.4 on 24 March.
In the editorial, we examine some factors that would determine the direction of the stock.
Read on…
Positive Factors that could work for Tejas Networks
- Expanding international footprint
The company has been systematically diversifying. Beyond India, the company has secured recent 4G RAN (Radio Access Network) orders in South Asia and optical backbone buildouts in Africa and Southeast Asia.
In March 2026, the company received an order to supply its state-of-the-art 4G RAN solutions for a mobile network in South Asia.
As a part of the order, Tejas’s 4G multiband radio products will be deployed at multiple locations across the mobile operator’s network.
2. NEC Corporation agreement
In another significant order, Tejas Networks in late February 2026, announced that it has signed an agreement with NEC Corporation to manufacture and supply 5G massive MIMO radios.
These substantial orders have pushed the stock higher in the last month.
3. BharatNet Phase-III
Tejas has emerged as the largest supplier for this project, winning seven out of 12 packages announced so far. This involves supplying over 50,000 routers, providing multi-year revenue visibility.
4. The Tata group advantage
As a subsidiary of Tata Sons (via Panatone Finvest), Tejas benefits from the group's massive balance sheet, global corporate relationships, and lower borrowing costs.
Factors that you should watch
Losses
Tejas Networks has reported four consecutive quarterly losses as of Q3 FY26 (December 2025 results). While the company is investing in growth, sustained net losses drain cash reserves and could test investor patience.
BSNL dependency
In Q3 FY26, a critical BSNL purchase order was deferred. Such delays are common in government-led projects but directly impact Tejas's ability to recognize revenue.
Though the company is diversifying, any deferments will push investor expectations even further.
Competition
While the NEC deal is a win, Tejas Networks is competing against international giants in some of the products that it supplies.
How Tejas Networks' share price has performed recently
Tejas Networks' shares have gained over 30% in the last month.
The stock touched its 52-week high of ₹914.5 on 22 April 2025 and its 52-week low of ₹294.1 on 27 January 2026.
Should you consider the stock of Tejas Networks?
Tejas Networks is a story centred on a transformation from a domestic wireline player into a global 5G company under the Tata group umbrella.
The primary appeal lies in its order book and its strategic role in the nationwide BSNL 4G/5G rollout and BharatNet Phase-III.
Recent international breakthroughs, specifically the landmark 2026 agreement to supply 5G radios to Japan’s NEC Corporation and new 4G orders in South Asia, could validate its indigenous technology on the world stage.
However, the company is facing significant near-term financial hurdles.
Investors must weigh the long-term potential of its deep R&D and Tata-backed pedigree against valuations, stretched working capital, and the risks of project delays.
Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Happy investing.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com