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

Stock Performance and Market Context

On 20 Jan 2026, Tejas Networks Ltd’s share price declined by 2.63% on the day, underperforming its sector by 2.2%. The stock hit an intraday low of Rs.338.75, which represents its lowest level in the past year. This price is substantially below its 52-week high of Rs.1,150, indicating a steep depreciation of nearly 70% over the last twelve months. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment.

In comparison, the broader market benchmark, the Sensex, experienced a decline of 0.47% on the same day, closing at 82,855.09 points. Despite this, the Sensex remains only 3.99% shy of its 52-week high of 86,159.02. The index has been on a three-week consecutive decline, losing 3.39% in that timeframe, but its performance remains markedly stronger than that of Tejas Networks Ltd.

Financial Metrics and Recent Results

Tejas Networks Ltd’s recent financial disclosures reveal a challenging environment. The company reported a sharp fall in net sales for the quarter ended December 2025, with revenues declining by 88.39% to Rs.306.79 crores. Profitability metrics have also deteriorated significantly, with profit before tax (excluding other income) plunging by 257.15% to a loss of Rs.310.41 crores. The net loss after tax widened by 218.6%, amounting to Rs.196.55 crores for the quarter.

This marks the second consecutive quarter of negative results, reflecting ongoing difficulties in revenue generation and cost management. The company’s return on equity (average) stands at a modest 2.99%, indicating limited profitability relative to shareholders’ funds.

Credit and Valuation Concerns

The company’s financial health is further strained by a high debt burden. Tejas Networks Ltd carries a debt to EBITDA ratio of 12.63 times, indicating a low capacity to service its debt obligations from operating earnings. This elevated leverage contributes to the company’s weak long-term fundamental strength, as reflected in its current Mojo Grade of Strong Sell, downgraded from Sell on 20 Oct 2025.

Valuation metrics also suggest heightened risk. The stock’s recent returns of -69.96% over the past year contrast sharply with the Sensex’s positive 7.56% gain over the same period. Profitability has deteriorated by 215.7%, underscoring the challenges faced by the company in reversing its financial trajectory. Additionally, Tejas Networks Ltd has underperformed the BSE500 index over the last three years, one year, and three months, highlighting persistent below-par performance both in the near and long term.

Shareholding and Sector Position

The majority shareholding in Tejas Networks Ltd remains with the promoters, who continue to hold a controlling stake. The company operates within the Telecom - Equipment & Accessories sector, which has experienced mixed performance amid evolving industry dynamics and competitive pressures.

Summary of Key Indicators

To summarise, Tejas Networks Ltd’s stock has reached a critical low point at Rs.338.75, reflecting a sustained decline over recent months. The company’s financial results reveal significant contraction in sales and profitability, compounded by a high debt load and weak returns on equity. The stock’s performance relative to market benchmarks and sector peers has been notably poor, with a Mojo Score of 1.0 and a Strong Sell grade indicating considerable caution.

While the broader market and sector indices have shown some resilience, Tejas Networks Ltd’s share price remains under pressure, trading well below all major moving averages and continuing its downward trend. These factors collectively illustrate the challenges currently faced by the company within the telecom equipment industry.

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