**Tejas Networks Faces Financial Struggles Amid BSNL Order Delays**
Tejas Networks Ltd, a telecom equipment manufacturer backed by the Tata group, entered the 2024-25 fiscal year with high expectations, having initiated the deployment of a 4G network across approximately 100,000 sites for Bharat Sanchar Nigam Ltd (BSNL). However, the company is now grappling with significant financial challenges due to delays in a crucial order that have adversely affected its earnings.
For nearly a year, the Bengaluru-based firm has been awaiting BSNL’s ₹1,526 crore add-on order for an additional 18,685 sites. This prolonged wait has resulted in the company maintaining high inventory levels exceeding ₹2,300 crore for four consecutive quarters, leading to quarterly losses driven by severe revenue constraints. During the earnings call on January 9, stakeholders expressed growing impatience, questioning management about the path to profitability following a series of cumulative losses.
Concerns have been raised regarding Tejas Networks’ financial model, particularly as its inventory levels have reached double the order book size of ₹1,329 crore. This situation has created an extended working capital cycle that has yet to yield returns for shareholders. Analysts have also inquired about the company’s cash runway, speculating whether a fundraising effort would be necessary given the recurring EBITDA losses of approximately ₹150 crore and the substantial revenue required to achieve break-even, excluding BSNL orders.
Arnob Roy, executive director and chief operating officer of Tejas Networks, acknowledged the difficulties during the earnings call, stating, “I understand this is a difficult time because of our business and the stock price. All I can say is that we are bullish about our business. We are doing everything we can to execute on this, and we are confident that we will get there. It’s a transition period which is taking longer than we would have liked.”
The delay in the BSNL order has been attributed to the telecom operator’s lack of operational readiness for the network rollout. Roy indicated that inventory levels would decrease rapidly once the purchase order from BSNL is received and the project execution begins. He explained that much of the inventory was procured in anticipation of the BSNL 4G add-on order, for which Tata Consultancy Services Ltd (TCS) has received an advanced purchase order.
Tejas Networks first announced being in advanced discussions with BSNL regarding the add-on offer in April 2025 and later confirmed the receipt of an advanced purchase order on May 21, 2025.
**FAQ**
**What is causing the financial struggles for Tejas Networks?**
Tejas Networks is facing financial difficulties primarily due to delays in a critical order from BSNL, which has led to high inventory levels and significant quarterly losses.
