Tejas Networks Share Price Takes a Hit Following Q4 Loss

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, "Our investments in R&D and one-time charges impacted our quarterly results. However, we ended FY25 with strong growth in revenue and net profits."

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. Still, the stock's history of delivering multi-bagger returns suggests the potential for recovery in the coming years.