When it comes to India’s telecom and networking sector, Tejas Networks always draws attention. But this time, their March 2025 quarterly results have left investors feeling a bit of a mixed bag. Let’s break it all down, and trust me, there’s a lot to unpack here!
Net Sales Soar: A Bright Spot Amid the Clouds
First things first, let’s talk about the good news. Tejas Networks reported a net sales figure of ₹1,901.51 crore for the quarter ending March 2025. Sounds impressive, right? It should because that’s a 45.67% jump compared to the ₹1,305.32 crore they clocked in March 2024.
This kind of growth, especially in a tough and competitive market, deserves applause. It shows that Tejas Networks is still capturing demand and expanding its market presence. Whether it’s upgrading infrastructure or fulfilling massive government contracts, they’re clearly staying busy.
But Wait – A Deeper Look Reveals Cracks
While booming sales are exciting, not everything is sunshine and rainbows. Here’s where things start to get a little messy. Despite higher sales, Tejas Networks reported a net loss of ₹62.01 crore for March 2025. If you’re wondering, that’s a sharp improvement compared to the ₹159.19 crore loss they suffered in March 2024.
So, yes, they’re losing money… but at least they’re losing less than before. Strange comfort, right?
EBITDA Takes a Hit: Profitability Still a Big Question
Now, here’s a number that might make investors flinch: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the March 2025 quarter stood at ₹139.28 crore. That’s a massive 56.37% decline from the ₹319.20 crore reported a year ago.
This steep drop hints at growing operational challenges. Rising raw material costs, increasing competition, or maybe even strategic missteps could be gnawing away at their margins.
A Peek Into the Cost Structure: Rising Expenses Everywhere
If you’re wondering what’s eating into the profits, the answer is pretty simple: costs. Let’s take a closer look:
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Consumption of raw materials jumped to ₹1,311.28 crore, up from ₹778.08 crore last year.
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Employee costs grew to ₹106.98 crore, compared to ₹94.61 crore a year ago.
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Other expenses also doubled, reaching ₹196.53 crore.
It’s like every part of their business got heavier. Running a tech company isn’t cheap, but these numbers suggest Tejas Networks might need to tighten its belt a little moving forward.
Stock Performance: Investors Left Disappointed
Now, if you had invested in Tejas Networks six months ago, chances are you’re probably not smiling today. As of April 24, 2025, Tejas Networks share price closed at ₹858.95 on the NSE.
Here’s the kicker:
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Over the last 6 months, the stock has plunged by -31.80%.
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Over the past year, it’s down -17.84%.
Those are some ugly numbers for long-term shareholders. Despite the growth in revenue, the profitability concerns have clearly scared off a lot of investors.
Understanding the EPS Story: From Positive to Negative
Another alarming sign is the Earnings Per Share (EPS) trend. In March 2024, Tejas Networks had a positive EPS of ₹9.34. Fast forward to March 2025, and it has slipped into the red with an EPS of -₹3.53.
EPS is often the heartbeat of investor sentiment. When it beats strong, people buy. When it falters, people run. Clearly, this bleeding EPS is part of the reason why the Tejas Networks share price has been under so much pressure.
Comparing Last Few Quarters: Volatility Is the Name of the Game
Here’s a quick snapshot of how Tejas Networks has performed recently:
| Quarter | Net Sales (₹ Cr) | Net Profit/Loss (₹ Cr) |
|---|---|---|
| Dec’24 | 2,497.11 | 165.42 |
| Mar’25 | 1,901.51 | -62.01 |
| Mar’24 | 1,305.32 | -159.19 |
One thing is crystal clear — the numbers are wildly swinging. In December 2024, profits were soaring, and just a quarter later, they’re staring at heavy losses again.
It’s like riding a rollercoaster without a seatbelt!
Why Is Tejas Struggling Despite Growing Sales?
Good question! A few reasons might explain the dilemma:
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Margin Pressure: Cost of raw materials and other operational expenses have risen sharply.
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Competitive Environment: Players like Sterlite Technologies and global giants are pushing hard.
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Strategic Investments: Tejas Networks is possibly investing in future growth — new products, new markets — at the expense of short-term profits.
In short, they’re trying to grow while carrying heavy baggage. It’s risky but could pay off in the long term.
Investor Takeaway: Should You Hold, Sell, or Buy?
Here comes the million-dollar question — what should you do with Tejas Networks stock?
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If you believe in their long-term vision, the current lower Tejas Networks share price might be a buying opportunity.
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If you prefer safe bets and steady returns, you might want to stay on the sidelines until profitability stabilizes.
At the end of the day, it depends on your risk appetite. Are you ready for a bumpy ride, or are you looking for a smooth cruise?
Looking Ahead: What Lies in the Future for Tejas Networks?
Despite the hiccups, the fundamentals of the telecom industry in India remain strong. Government initiatives like BharatNet, 5G rollouts, and private sector expansion could drive significant demand.
Tejas Networks has strong expertise and a robust product portfolio. If they can iron out their margin issues and return to consistent profitability, the current struggles could soon be a thing of the past.
Conclusion
To sum it all up — Tejas Networks has delivered a mixed bag this quarter. Sales are booming, but profits are slipping. Costs are rising, but so are opportunities.
The Tejas Networks share price might be hurting right now, but for long-term investors with a bit of patience and a strong stomach for volatility, this could just be the beginning of an interesting story.
As always, do your homework, stay informed, and remember — in the stock market, it’s not just about speed. It’s about endurance.