Tejas Networks’ share price plunged more than 15% after the company reported a net loss for the fourth quarter (Q4) of FY25. The stock price plummeted to ₹726.10 on the Bombay Stock Exchange (BSE), a decline of 15.55%.
Main News: Q4 Results Lead to Loss
For Q4FY25, Tejas Networks reported a net loss of ₹71.8 crore, a sharp contrast to the ₹146.8 crore profit during the same period in FY24. The company attributed the Loss to heightened investments in research and development (R&D) and one-time charges linked to inventory and R&D expenses.
Company Financial Performance Overview
Despite the setback in profitability, the company’s top-line performance showed notable growth:
- Revenue: ₹1,906.9 crore, marking a 43.7% year-on-year increase from ₹1,326.9 crore.
- EBITDA: ₹121.5 crore, a drop of 60.7% from ₹309.3 crore YoY.
- EBITDA Margin: Decreased to 6.4% from 23.3% in the previous year.
- Net Loss: ₹72 crore, driven by R&D and inventory-related charges.
Sumit Dhingra, Tejas Networks’ CFO, commented, “We ended the quarter with an order book of ₹1,019 crore and a net loss of ₹72 crore, due to increased investments in R&D and one-time charges in certain inventory and R&D expenses. We ended FY25 with a revenue of ₹8,923 crore and net profit of ₹447 crore, a significant growth over FY24″
Tejas Networks’ Stock Performance
- 1-month decline: 2%
- 6-month decline: 38%
- YTD performance: Down 35%
- 1-year decline: 25%
- 5-year performance: Tejas Networks has posted impressive multibagger returns of 1,925%.
Conclusion: Resilience Amidst Challenges
Despite the significant quarterly Loss, Tejas Networks’ long-term growth trajectory remains impressive, with a notable revenue increase. The company’s R&D investments and one-time charges have weighed its short-term financials.
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