Tejas Networks Gains 12.09%: 3 Key Factors Driving the Week’s Volatility

27 January 2026: Stock Hits 52-Week Low Amid Financial Struggles

Tejas Networks Ltd’s stock price plunged to a fresh 52-week low of Rs.294.10 on 27 January 2026, reflecting ongoing financial difficulties. The stock closed at Rs.296.45, down 2.50% on the day, extending a 12-day losing streak that saw a cumulative decline of approximately 33.1%. This drop contrasted sharply with the Sensex’s 0.50% gain, which closed at 35,786.84.

The company’s deteriorating financial health was underscored by a sharp 88.39% fall in net sales for the quarter ended December 2025, down to Rs.306.79 crores. Profitability metrics worsened, with a loss before tax less other income of Rs.310.41 crores and a net loss after tax of Rs.196.55 crores, marking declines of 257.15% and 218.6% respectively. The high debt-to-EBITDA ratio of 12.63 times further exacerbated concerns about the company’s ability to service its obligations.

Despite the sector’s mixed performance, Tejas Networks remained under pressure, trading below all key moving averages, signalling sustained bearish momentum. The Mojo Grade of Strong Sell and a low Mojo Score of 1.0 reflect the cautious stance based on these financial and operational challenges.

28 January 2026: Sharp Intraday Rally Reverses Downtrend

Following the prior day’s lows, Tejas Networks Ltd rebounded strongly on 28 January 2026, surging 14.45% to close at Rs.339.30. The stock hit an intraday high of Rs.323.55, marking an 8.42% gain from the previous close and outperforming the Telecom - Equipment & Accessories sector’s 2.66% rise and the Sensex’s 1.12% gain.

This rally ended a 12-day losing streak and was accompanied by elevated volatility, with a weighted average price volatility of 8.22%. Despite this sharp rebound, the stock remained below its key moving averages, indicating that the longer-term downtrend was intact. The strong intraday performance suggested a temporary shift in trading dynamics, possibly driven by short-term catalysts or bargain hunting.

However, the company’s fundamental challenges persisted, with weak quarterly results and a high leverage ratio continuing to weigh on sentiment. The Mojo Grade remained at Strong Sell, reflecting ongoing caution despite the intraday strength.

29 January 2026: Profit Taking Leads to Moderate Pullback

On 29 January 2026, Tejas Networks Ltd experienced a modest correction, closing at Rs.326.00, down 3.92% from the previous day’s close. This pullback followed the strong rally and was accompanied by a lower volume of 613,305 shares, indicating some profit taking by traders.

The Sensex continued its upward trajectory, gaining 0.22% to close at 36,266.59, highlighting the stock’s relative weakness on the day. The stock’s position below key moving averages persisted, maintaining a cautious technical outlook.

30 January 2026: Intraday High and Strong Close Amid Market Weakness

Tejas Networks Ltd closed the week on a strong note, gaining 4.54% to Rs.340.80 on 30 January 2026. The stock hit an intraday high of Rs.351.55, a 7.19% surge from the previous close, outperforming the Telecom sector’s 3.55% gain and the Sensex’s 0.22% decline.

The session was marked by significant volatility, with the stock opening lower at Rs.317.30 before rallying sharply. The closing price above the 5-day moving average indicated short-term strength, although the stock remained below longer-term averages, reflecting a mixed technical picture.

This intraday strength, combined with the week’s overall 12.09% gain, highlights the stock’s capacity for sharp rebounds despite persistent fundamental headwinds. The Mojo Grade of Strong Sell remains unchanged, signalling that caution is warranted given the company’s financial and operational challenges.

Daily Price Performance Comparison

Key Takeaways

Positive Signals: The stock’s 12.09% weekly gain significantly outpaced the Sensex’s 1.62% rise, driven by sharp intraday rallies on 28 and 30 January. The closing price above the 5-day moving average on the final day suggests short-term technical strength. Active trading and elevated volatility indicate renewed investor interest despite the broader downtrend.

Cautionary Signals: Tejas Networks Ltd remains burdened by weak financials, including a severe decline in net sales and substantial quarterly losses. The high debt-to-EBITDA ratio of 12.63 times and persistent trading below key moving averages highlight ongoing fundamental and technical challenges. The Mojo Grade of Strong Sell reflects continued caution based on comprehensive financial and operational analysis.

The stock’s volatility and sharp rebounds occur within a context of structural weakness, underscoring the importance of monitoring both financial results and technical developments closely.

Conclusion

Tejas Networks Ltd’s week was marked by significant volatility, with a fresh 52-week low early in the week followed by strong intraday rallies that lifted the stock to a 12.09% weekly gain. While this outperformance against the Sensex is notable, the company’s ongoing financial struggles and high leverage continue to weigh on its medium- and long-term outlook. Technical indicators suggest short-term strength but remain overshadowed by broader downtrends. Investors should remain attentive to upcoming financial disclosures and market developments as the stock navigates this complex environment.

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