Tejas Networks Ltd Falls to 52-Week Low Amid Continued Financial Struggles

Stock Performance and Market Context

On 19 Jan 2026, Tejas Networks Ltd’s stock price fell by 2.3% intraday, reaching Rs.356.9, its lowest level in the past year. The stock has been on a downward trajectory for seven consecutive trading sessions, resulting in a cumulative loss of 20.06% over this period. This decline outpaced the sector’s performance, with the stock underperforming the Telecom - Equipment & Accessories sector by 1.87% today.

Tejas Networks is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This technical positioning underscores the stock’s weak momentum relative to its historical price levels.

In contrast, the broader market index, Sensex, despite a negative close of 0.69% at 82,996.47 points, remains 3.81% below its 52-week high of 86,159.02. The Sensex itself has experienced a three-week consecutive decline, losing 3.22% in that timeframe, reflecting some broader market pressures. However, Tejas Networks’ 1-year return of -65.98% starkly contrasts with the Sensex’s positive 8.34% gain over the same period, highlighting the stock’s relative underperformance.

Financial Performance and Fundamental Metrics

Tejas Networks Ltd’s recent financial disclosures reveal a challenging environment. The company reported a sharp decline in net sales for the quarter ending December 2025, with revenues falling by 88.39% to Rs.306.79 crores. This steep drop in sales has been accompanied by significant losses at the profit before tax (PBT) level, which plunged by 257.15% to a negative Rs.310.41 crores.

Net profit after tax (PAT) also reflected a substantial downturn, registering a loss of Rs.196.55 crores, a decline of 218.6% compared to the previous period. These results mark the second consecutive quarter of negative financial outcomes for the company, underscoring ongoing difficulties in revenue generation and cost management.

The company’s long-term financial health is further challenged by a high debt burden, with a Debt to EBITDA ratio of 12.63 times, indicating limited capacity to service debt obligations comfortably. Additionally, the average Return on Equity (ROE) stands at a modest 2.99%, signalling low profitability relative to shareholders’ funds.

These factors contribute to the company’s current Mojo Score of 1.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 20 Oct 2025. The Market Cap Grade remains at 3, reflecting the company’s mid-cap status but tempered by its financial struggles.

Valuation and Risk Considerations

Tejas Networks’ stock is trading at valuations considered risky relative to its historical averages. Over the past year, the stock’s price has declined by nearly 66%, while profits have deteriorated by over 215%, indicating a disconnect between market valuation and financial performance.

In addition to the recent quarterly results, the company’s longer-term performance has been below par. It has underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in both near-term and extended timeframes.

The stock’s 52-week high was Rs.1,150, illustrating the magnitude of the decline to the current low of Rs.356.9. This represents a drop of approximately 69%, highlighting the scale of value erosion experienced by shareholders over the past year.

Shareholding and Sector Position

The majority ownership of Tejas Networks Ltd remains with its promoters, maintaining a concentrated shareholding structure. The company operates within the Telecom - Equipment & Accessories sector, which has seen mixed performance amid evolving industry dynamics and competitive pressures.

Despite the sector’s overall challenges, Tejas Networks’ relative underperformance and financial metrics have contributed to its current standing as a strong sell according to MarketsMOJO’s grading system.

Summary of Key Metrics

To summarise, Tejas Networks Ltd’s stock has reached a 52-week low of Rs.356.9, reflecting a sustained decline over recent months. The company’s financial results reveal significant reductions in sales and profitability, compounded by a high debt load and modest returns on equity. The stock’s valuation is considered risky relative to historical norms, and it has underperformed both its sector and broader market indices over multiple time horizons.

These factors collectively explain the stock’s current market position and the challenges it faces in regaining investor confidence.

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