Tejas Networks shares fell nearly 4% in early trade on Tuesday after the telecom equipment maker reported a wider consolidated net loss for the first quarter of FY27, even as revenue nearly doubled from a year earlier.
The company posted a net loss of Rs 202 crore in the June quarter, compared with a loss of Rs 194 crore in the corresponding quarter last year. Investors tracked the continued pressure on profitability despite a sharp improvement in the topline.
The stock was trading at Rs 494 apiece, down from its previous close at Rs 513.05, even amid a positive broader market sentiment as Nifty 50 trades in the green.
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Revenue Nearly Doubles But Losses Expand
Tejas Networks' consolidated revenue jumped 99.1% year-on-year to Rs 402 crore during the quarter, compared with Rs 202 crore in the same period last year.
The near-doubling of revenue marked a strong improvement in the company's topline performance. However, higher revenue was not enough to bring the company back into profitability during the quarter.
At the operating level, Tejas Networks reported an Ebitda (earnings before interest, taxes, depreciation, and amortization) loss of Rs 100 crore in Q1. This was narrower than the Ebitda loss of Rs 136 crore reported in the year-ago period.
While the reduction in operating losses indicated an improvement compared with last year, the company remained in the red at both the Ebitda and net profit levels.
The bottom line deteriorated despite the improvement in revenue and operating losses, with the consolidated net loss widening by Rs 8 crore year-on-year to Rs 202 crore.
Share Price Movement
Tejas Networks' shares have been under pressure for over a month now, declining over 20% during the period, when Nifty 500, representing the broader market, gained marginally by 0.14%.
The stock traded between Rs 294 a piece and Rs 647 in the past 52 weeks, and had a market capitalisation of Rs 8,790.13 crore as at the end of the previous trading session.
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