Recent Price Movement and Market Context
On 17 Dec 2025, Tejas Networks recorded an intraday low of Rs.453.05, representing a 3.23% decline during the trading day. This marks the lowest price level the stock has touched in the past year, a notable development given the stock’s 52-week high of Rs.1,342. Over the last three consecutive trading days, the stock has delivered a cumulative return of -4.98%, signalling persistent selling pressure.
The stock’s performance today lagged behind its sector peers by 2.78%, indicating relative weakness within the Telecom - Equipment & Accessories industry. Furthermore, Tejas Networks is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a bearish technical setup.
In contrast, the broader market index, Sensex, opened positively with a gain of 176.40 points but later retreated by 326.42 points to close at 84,529.84, down 0.18%. The Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day and 200-day moving averages, reflecting a generally bullish market environment that Tejas Networks has not mirrored.
Financial Performance and Profitability Indicators
Tejas Networks’ financial results have shown considerable strain over the recent quarters. The company’s net sales for the quarter stood at Rs.261.82 crores, reflecting a sharp contraction of 90.69% compared to previous periods. This significant reduction in revenue has coincided with operating losses, which have contributed to a challenging profitability profile.
The operating profit to interest ratio for the quarter was recorded at -3.48 times, indicating that operating earnings are insufficient to cover interest expenses. This metric highlights the company’s limited capacity to service its debt obligations from operational cash flows.
Net profit after tax (PAT) for the quarter was a loss of Rs.307.13 crores, representing a decline of 211.6%. This substantial loss further emphasises the financial difficulties faced by the company in recent periods.
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Long-Term Financial Health and Valuation
Over the past year, Tejas Networks has delivered a total return of -64.73%, a stark contrast to the Sensex’s positive return of 4.74% during the same period. This underperformance extends beyond the short term, with the stock lagging behind the BSE500 index over one-year, three-year, and three-month horizons.
The company’s long-term fundamental strength is considered weak, with a high debt to EBITDA ratio of 12.63 times, signalling elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. This level of indebtedness poses challenges for financial flexibility and risk management.
Return on equity (ROE) averaged 2.99%, indicating limited profitability generated per unit of shareholders’ funds. This figure suggests that the company has struggled to generate substantial returns for its equity investors over time.
Stock Valuation and Risk Considerations
Tejas Networks is currently trading at valuations that are considered risky when compared to its historical averages. The combination of negative operating profits and a significant decline in net sales has contributed to a challenging investment profile. The stock’s recent price action reflects these underlying financial pressures, with the share price retreating to levels not seen in the past year.
Despite the broader market’s generally positive tone, Tejas Networks’ stock has not participated in the rally, instead moving in the opposite direction. This divergence highlights company-specific factors influencing investor sentiment and valuation.
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Shareholding and Industry Position
The majority shareholding in Tejas Networks remains with the promoters, maintaining a concentrated ownership structure. The company operates within the Telecom - Equipment & Accessories sector, which has seen mixed performance across its constituents in recent months.
While the broader telecom equipment industry has experienced fluctuations, Tejas Networks’ stock has notably diverged, reflecting company-specific financial and market dynamics.
Summary of Key Metrics
To summarise, Tejas Networks’ stock has reached a 52-week low of Rs.453.05, with a three-day cumulative return of -4.98%. The company’s net sales for the recent quarter stood at Rs.261.82 crores, down by 90.69%, while net losses after tax were Rs.307.13 crores, a decline of 211.6%. The debt to EBITDA ratio remains elevated at 12.63 times, and return on equity averages 2.99%. These figures collectively illustrate the financial pressures currently faced by the company.
In the context of a broader market that remains near its 52-week highs and trades above key moving averages, Tejas Networks’ stock performance highlights the divergence between company-specific challenges and overall market trends.
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