Stock Price Movement and Market Context
On 27 Jan 2026, Tejas Networks Ltd’s share price touched an intraday low of Rs.294.1, representing a decline of 3.27% on the day and a day change of -1.71%. This new low comes after a sustained period of depreciation, with the stock losing value for 12 consecutive trading sessions, resulting in a cumulative return of -33.1% over this period. The current price is substantially below the stock’s 52-week high of Rs.973.9, underscoring the extent of the decline.
The stock is 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 contrasts with the broader market, where the Sensex recovered from an initial negative opening to close higher by 0.1% at 81,621.30 points. While mega-cap stocks led the market rally, Tejas Networks remained under pressure, reflecting sector-specific and company-specific challenges.
Financial Performance and Profitability Concerns
Tejas Networks Ltd has reported a sharp decline in net sales, with quarterly net sales falling by 88.39% to Rs.306.79 crores. This steep drop has contributed to the company declaring very negative results for the December 2025 quarter, marking the second consecutive quarter of negative financial outcomes. The company’s profit before tax excluding other income (PBT less OI) plunged by 257.15% to a loss of Rs.310.41 crores, while the net loss after tax (PAT) widened by 218.6% to Rs.196.55 crores.
The company’s return on equity (ROE) remains subdued at an average of 2.99%, indicating limited profitability relative to shareholders’ funds. Additionally, the debt servicing capacity is strained, with a high Debt to EBITDA ratio of 12.63 times, reflecting elevated leverage and financial risk. The negative EBITDA further emphasises the challenging financial position of the company.
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Comparative Performance and Sectoral Positioning
Over the past year, Tejas Networks Ltd has delivered a total return of -66.61%, significantly underperforming the Sensex, which posted a positive return of 8.30% over the same period. The stock’s underperformance extends beyond the last year, with returns lagging behind the BSE500 index across one-year, three-year, and three-month timeframes.
Within the Telecom - Equipment & Accessories sector, the stock’s Mojo Score stands at a low 1.0, accompanied by a Mojo Grade of Strong Sell, which was downgraded from Sell on 20 Oct 2025. The Market Cap Grade is rated 3, reflecting moderate market capitalisation relative to peers. These metrics highlight the stock’s current standing as a high-risk option within its industry segment.
Shareholding and Governance
The majority shareholding in Tejas Networks Ltd remains with the promoters, indicating concentrated ownership. This structure can influence strategic decisions and capital allocation, particularly during periods of financial stress.
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Summary of Key Financial Indicators
Tejas Networks Ltd’s recent financial disclosures paint a challenging picture:
- Net Sales (Quarterly): Rs.306.79 crores, down 88.39%
- PBT less Other Income (Quarterly): Loss of Rs.310.41 crores, down 257.15%
- Profit After Tax (Quarterly): Loss of Rs.196.55 crores, down 218.6%
- Debt to EBITDA Ratio: 12.63 times, indicating high leverage
- Return on Equity (Average): 2.99%, reflecting low profitability
- Mojo Score: 1.0 (Strong Sell), downgraded from Sell on 20 Oct 2025
The stock’s valuation and financial metrics suggest a cautious stance, with the company facing significant headwinds in both revenue generation and profitability.
Market and Sector Dynamics
While the broader market indices such as Sensex and certain sectoral indices like NIFTY MEDIA and NIFTY REALTY experienced volatility and some hitting 52-week lows, Tejas Networks Ltd’s decline is more pronounced and company-specific. The stock’s performance is not aligned with the modest recovery seen in the Sensex, which closed marginally higher despite a negative start to the trading day.
The telecom equipment sector continues to face competitive pressures and evolving technological demands, which have impacted companies with weaker financial structures more severely. Tejas Networks Ltd’s current trading below all major moving averages further emphasises the prevailing negative momentum.
Conclusion
Tejas Networks Ltd’s fall to a 52-week low of Rs.294.1 reflects a combination of steep declines in sales, widening losses, and elevated financial risk. The stock’s performance over the past year has been markedly below market benchmarks, with deteriorating profitability and high leverage contributing to its current valuation levels. While the broader market shows signs of resilience, Tejas Networks Ltd remains under pressure within its sector and continues to face significant challenges as reflected in its financial results and market metrics.
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