In the rapidly evolving telecommunications landscape, a major Indian telecomm stock is making moves to enhance its network infrastructure. The company is investing significantly in expanding its technological capabilities to meet growing data transmission demands.
This telecom stock aims to scale Vodafone Idea’s backhaul capacity, which is crucial for supporting robust 4G and emerging 5G networks. This contract signals a forward-looking approach to network performance and customer connectivity for both companies.
Share Price Movement
The share price of Tejas Networks Limited went up by 2.75 percent to Rs. 1,374 per share on Tuesday, an increase from its previous close of Rs. 1,337.15 per share. The market capitalisation now stands at approximately Rs. 22,958 crore as of December 10, 2024.
What happened
Tejas Networks signed a three-year contract with Vodafone Idea Limited (VIL) to supply TJ1400 and TJ1600 packet and optical transmission products. This partnership aims to enhance VIL’s backhaul capacity and improve network performance for its nationwide 4G and 5G rollouts, supporting scalable and robust telecom infrastructure across India.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Tejas Networks’s consolidated revenue from operations has increased by 661 percent YOY from Rs. 396 crore in Q2 FY24 to Rs. 2,811 crore in Q2 FY25 and increased by 79 percent QoQ from Rs. 1,563 crore in Q4 FY24.
The company’s consolidated net loss changed from a loss of Rs. 13 crore in Q2 FY24 to a profit of Rs. 275 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 257 percent QoQ from Rs. 77 crore.
Market Outlook
The telecommunications industry is expanding rapidly with the growth of 4G/5G mobile technologies, fibre broadband, and data-intensive applications like video streaming and IoT. Telecom operators are investing heavily in mobile and fixed broadband networks to meet rising data traffic and ensure quality service delivery.
Both wireless and wireline segments of the market are expected to grow significantly, with the total addressable market for Tejas Networks’ products projected to increase from US$33 billion in 2024 to US$50 billion by 2029 for wireline and from US$44 billion to US$58 billion for wireless products.
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Shareholding Pattern
As of the September 2024 shareholding pattern, Tejas Networks Limited is primarily held by the promoters at 55.42 percent, foreign institutional investors hold 9.58 percent, and the public with 30.24 percent.
About Company
Tejas Networks, headquartered in Bangalore, Karnataka, stands as a leading force in the global telecommunications sector. Established in 2000 by Sanjay Nayak with funding from Gururaj Deshpande, the company has grown into a major player, now part of the Tata Group through Panatone Finvest Ltd.
Tejas Networks boasts a global footprint, with its advanced systems deployed in over 75 countries. Employing around 1,900 professionals, the company excels in delivering cutting-edge networking solutions tailored for diverse sectors, including telecom operators, ISPs, and government entities.
The company’s portfolio features innovative products such as 4G/5G wireless systems, optical networking technologies like DWDM and GPON, and advanced packet transport solutions. Tejas has shipped over 900,000 systems globally, maintaining a remarkable uptime of 99.9%. Notable achievements include securing a contract with BSNL for 4G/5G deployment and reporting record revenues of ₹2,471 crore in FY24, reflecting 168% growth.
With over 445 patents and a workforce where 60% focuses on research and development, Tejas Networks leads the way in telecom innovation. Its commitment to excellence, partnerships, and advanced technology continues to shape the future of global communications infrastructure.
Written By Fazal Ul Vahab C H
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