Good evening, everyone. I would like to welcome the management and thank them for this opportunity.

We have with us today Anand Roy, Managing Director and Chief Executive Officer; AVS Prasad, Chief Financial Officer; Dr. Kumar N.

Sivarajan, Chief Technology Officer; Preetha Muthayya, Chief Operating Officer; and Sanjay Malik, Chief Strategy and Business Officer. I shall now hand over the call to the management for the opening remarks.

Over to you, gentlemen.

Thank you. Good evening, and welcome to the Tejas Networks earnings call of Q2.

I'd like to start with the summary of the quarter. We ended with a revenue of ₹406 crores as opposed to ₹257 crores on a on a year-on-year basis.

The profit after tax was a loss of ₹207 crores, which was an improvement from -₹307 crores of Q2 of FY26. Order book at the end of the year was at the end of the quarter was ₹2,315 crores.

From a revenue which is compared to Q1 Q1's order book was ₹1,500 crores. From a revenue mix, the India was 88% compared to the international revenues of 12%.

From an order book mix, there was 96% of India and 4% of international. The key reason was because of our order book being it was a receipt of the LOI and subsequent POs for 18,000+ 4G sites for the BSNL 4G network expansion.

That's the reason why the India component of the order book went up substantially. The Q2 revenues were driven by shipments of optical, IP, and FTTx products to private operators and system integrators.

We also started the initial shipments of the BSNL expansion order. We also did initial shipments of our end-to-end 5G solution to an international customer in South America.

This is a business that we had won last quarter and we started our shipments in this quarter. We filed 26 patents in in Q2, taking our global patent filing count to 748.

I'll now now hand it over to our CFO to take us through the numbers.

Good evening, everyone. The quarter two FY27 revenue from operations is around ₹406 crores compared to quarter two of 260 ₹262 crores in FY26, an increase of around 55%.

The improved scale reflects the continued recovery in terms of business performance. At H1 levels compared to ₹459 crores in H1 FY26, we are at ₹808 crores.

This growth represents approximately around 75% year-on-year growth. At the EBITDA level, compared to ₹293 negative in quarter two of FY26, we are at ₹108 crores in the current quarter.

At the PAT level, compared to ₹307 crores in quarter two FY26, we are at ₹207 crores. In terms of revenue comparison against quarter one FY27, we are at against ₹402 crores of revenue, we are at ₹406 crores.

At the EBITDA level, compared to last quarter EBITDA of 99, we are at around ₹108 crores. In terms of the balance sheet items, the net working capital compared to quarter one is lower at ₹4,235 crores.

This reduction in terms of working capital significantly is on account of lower trade receivables on account of increased collections and also, as a business, we do non-recourse bill discounting and also, which also has customer advance settlements, which happens on a regular basis. The reduction is on account of increased collections and non-recourse discounting.

In terms of inventory levels, compared to ₹2,358 crores, we are at around ₹2,314. The high levels of inventory, we expect the significant portion of the inventories would be utilized in executing the BSNL 4G order in the coming quarters, for which the deliveries have already started in quarter two.

At the net debt position, compared to the of ₹4,277 in quarter one, the debt has increased to ₹4,384 crores. This increase is on account of continued investments in terms of CapEx at Tejas as per the plan and also in terms of the increased operational and funding of the increased operational costs.

Yeah.

Thanks, Prasad. Now that for some more commentary on the quarter, a few business updates are as follows: For the wireless business, the most significant thing, as we mentioned, was the receiving the LOI for 18,685 sites, for which we're starting shipments.

The shipment of the end-to-end 5G mobile network, we did the initial RAN shipments. We also shipped and deployed our 5G core in the network.

We initiated multiple POC engagements in North America and Asia-Pacific regions, many of them with end-to-end Tejas solutions and many of them in conjunction with partners providing the complete end-to-end solution. We also had a few, one of the interesting things that's also happened is we're engaged with discussions with several tier-1 mobile network operators for custom 5G radio development in custom bands, as a combination of custom bands, and also high-power radios in custom bands.

This is one of the interesting new engagements we've started happen that has happened based on our the radio technology that we have. From a wireline perspective, we continue to increase our market share in the BharatNet, and we received an LOI from a new SI partner to supply IP/MPLS routers for upgrading the BharatNet middle-mile network in three states.

We also won a significant order for building an OTN network for a strategic OTN network for it's a pan-India network for a Government of India customer, for a Government of India enterprise, and we have received the orders subsequently for shipment. We also received POs to supply our GPON FTTx products for high-speed broadband access networks from several leading ISPs in India.

They are our existing customers who have increased their deployment of broadband connectivity to their customers. We also won a new tier-1 pan-African telecom operator network in India, and we were selected for optical equipment, our 400G optical equipment, for this network.

This is again a new customer footprint that we have won in that continent. A few other corporate updates.

We recently did a logo update, which you can see on the right-hand side of the slide, and we launched our new logo with the Tata endorsement mark at the India Mobile Congress in New Delhi. This new logo gives a more refined and new feel to the company and also reinforced our Tata Group association while retaining its familiar visual character.

We won the EEPC Export Excellence Award in the large enterprise category. We continued to file our patents, as I mentioned, taking it to 748, out of which 266 are connected to standards-related, for 5G-Advanced and 6G standards-related patents.

We also recently inaugurated our next-generation connectivity lab, showcasing advanced research in 5G-Advanced, 6G, and AI-powered network intelligence. We're also elected to the membership of TSDSI's Governing Council, which defines the standards applicable for India.

We had a very successful show at IMC recently, and some of the key announcements and demonstrations were for we demonstrated a real-world application of 6G by showing 6G sensing technology for drone and vehicle detection. This was done in partnership with Qualcomm.

We showed our end-tuned portfolio and capabilities, showcasing our unified mobility stack from radio baseband to core, the WavePlex family of products. We showed our hyperscale network solutions for cloud and AI data centers, and we also showed our future-ready optical access transport and routing portfolio scaled for the AI era.

During the conference, we participated in several thought leadership and other discussions. We had participated in four speaking sessions on 6G foundations and roadmap at the Bharat 6G symposium.

We also participated in the CEO and CTO roundtables with Honorable Ministry of Communications. We at Tejas has several panelists in the IMC business and technology sessions.

Looking forward, some of what are the key business drivers in wireless continues to be the expansion of 5G deployment in emerging markets and the 5G rollouts, which are supposed to continue till 2030. We continue to get new engagements for POCs and many of them leading to in a commercial discussion stage with operators in these emerging markets.

The other important factor is driver is the global 5G FWA subscriptions, the fixed wireless access, are supposed to triple and reach close to 90 million by 2030. The expansion of existing 4G network domestically, and that's part of the BSNL 4G network expansion that's happening.

AI driving the acceleration of 6G commercialization and which will drive the need for higher capacity, massive MIMO radios, and AI-native baseband and core. Similarly, in wireline, the drivers are the AI data centers driving generational upgrades of the access aggregation and metro backbone networks.

High-speed growth of and expansion of high-speed enterprise connectivity, increase in residential broadband connectivity, and as the wireless networks expand, expanding on the back and the buildout of the backhaul connectivity for the expanded mobile 5G networks. There's a continued modernization of utility networks that's happening and which we continue to win as they transition the networks from the older TDM networks to a modern packet-based transport networks.

Now, I'll let Kumar talk about our key product focus areas going forward.

Thank you, Anand. We're expanding our 5G radio access network portfolio.

When we go international, there are many bands that come up, while India may have only five or six bands. These are all custom, and we are expanding our radio portfolio to cover all these bands, right?

They go from 700 MHz to 4.9 GHz. We are also developing a compact baseband unit, which is as good as the best in the industry, which would support up to five frequency bands in one site.

That's essentially for one site, a very compact, 1RU or 2-inch-high unit will support all the frequency bands. We're making investments in 5G-Advanced and 6G.

AI-RAN is an area of significant investment for us. All the algorithms within the radio for estimating the channel, for managing the energy consumption, predicting the mobility of users, all of these we are moving to AI-based so that the performance is better.

In IMC 2026 last week, we showed integrated sensing and communication. Essentially, we're showing that the 5G radios that we deploy can be used like a radar.

They can sense and detect traffic, drones, cars, moving cars, or even plants, and so on. That's a demonstration that was well-received last week at IMC.

Last year, we had shown reconfigurable intelligent surfaces, which is a technology that improves fixed wireless access in 5G. In the wireline portfolio, we won the MAAN tender and deployed it in the last two years, which is based on IP/MPLS.

We are now expanding our IP/MPLS for routing portfolio to cover higher bit rates, so that we can address much bigger networks. In the access, latency, low latency is becoming important, especially because of AI-based applications.

We are developing high-capacity, low-latency access platforms at 200G and beyond. In terms of the backbone, there's both packet-based and optical-based backbone at terabits per second speeds, and we are investing in these products as well.

Lastly, we already are rolling out AI-based network management solutions. We call it the Tejas Observability Platform on top, and this helps our customer, our telecom telco customers, optimize their network, predict equipment faults, and reroute or recover from network faults through resilience, and also to plan their capacity, because they can predict when the traffic will grow and their capacity will start to run out.

This is already being deployed by many of our customers today.

Thank you, Kumar. Similarly, the focus areas for the company, as far as business and operations are concerned, in the business, that we are seeing a lot of success with other technology solution partnerships for getting a lot more international traction.

That is a key focus area for the company that we leverage our existing partnerships and continue to build new partnerships, like technology and solution partnerships, with which we can address a lot more customers globally. The other focus area is to expand our market share in private telcos both in mainly in the wireline space where we are, but also, in the next step, we want to work with them for our wireless technologies and get into a situation where we are able to do trials and POCs and all, so that we can win business when they get to do their 5G 4G or 5G expansion, the next phase of the expansion of their networks.

We also have a strategic focus on addressing data center interconnect applications, as those buildouts continue to happen and grow, and especially as the AI data centers start the investments in AI data centers starts happening in India. From a finance and operations perspective, we recently won this big BSNL expansion order, and first of all, we have to deliver on the BSNL 4G this order within the required timelines.

That's an important focus area for us. As a result of which, as we had built the inventory for this expansion order, which we're carrying for a while, and we have to achieve significant inventory reduction based on the execution of this order.

We'll have increased focus on collections. A lot of the customer deliveries and commitments have been executed, and so there will be a major focus on the customer receivables and achieving quarterly positive EBITDA performance.

The key takeaways for the quarter is that we have a strong growth in order book, based on which we have a strong business visibility for the next few quarters. Our wireless business is maturing.

We're seeing increasing international engagements. The BSNL expansion order is an endorsement of our product scalability and performance, and with the successful expansion of the network, the BSNL will see a lot more customers coming into this network and growth of their business as well.

We see a steady growth in wireline business, driven a lot primarily by data center connectivity expansion and residential and enterprise broadband. We are well-positioned for an AI-driven future with our investments in the next-generation wireless technologies of 5G-Advanced and 6G, and with the portfolio of products that we are investing in for building end-to-end high-bandwidth, low-latency networks, which are required for the AI infrastructure.

An important thing that's going to happen is the execution of the BSNL expansion order, which will bring down our inventory and gross debt significantly. We're also on the path of steadily improving our financial performance, and we have a visible path to profitability in the upcoming [weeks?]

. With that, I come to the end of our presentation, and would like to open the floor to Q&A.

Hi. Thank you for the opportunity, sir.

It's very heartening to see our receivables have come down significantly. If you just can comment on how much dues we have recovered from BSNL in particular and how much are still due that we have to receive from BSNL?

By when do we expect that payment to come in? Because in the last call, I think you had mentioned that we should be getting the payments by the quarter end.

That's my first question.

Yeah. Thanks, Tushar.

I think from BSNL, now we have come to the timelines for the milestone deliveries. We have met the milestone delivery requirements, and this is the quarter when we will see a significant amount of collections coming from BSNL, which are connected to the milestones that we have achieved.

I cannot specify the exact number, but it is going to substantially reduce our receivables.

That's great to know, sir. Sir, the order book that we have mentioned this time, ₹2,300 crores, does it also include this BSNL order for 1,500 Cr we got from TCS?

A part of it because we have received the LOI for the entire amount, but right now, as and when we get the POs The purchase orders are all connected to the sites, and the bands, and the circle readiness, and the identification. As we keep on getting the POs, they come into our order book and that's what we ship.

All of 1,500 is not there in the order book yet, but they will come, most of it we expect to come by the end of this quarter.

Okay. I just want to figure out, sir, because last quarter our order book was 1,500 Cr.

Out of this 2,300 Cr, can I can we just know what amount has come from outside BSNL?

I don't think I can share the exact details of the order book wins from customers here and there, but all I can say is that all of BSNL's 1,500 crore that we announced is not in this order book. It's a portion of it, substantial portion of it, and the rest of it has come from non-BSNL customers.

Okay. Okay.

Sir, there is one question that that really baffles me is that we are going international. We are going in all the expos that are happening globally and participating in all the bids.

Are we asked this question that we are an Indian company and we are trying ourselves in globally, and yet we've not been able to tap anything outside BSNL within India? How do you answer to such questions if you've been asked?

How do you think about it?

Yeah. I think if you look at it, by the time we were delivering BSNL, a lot of the Indian operators had already built their 4G and 5G networks, right?

To get into those networks, we need to wait for their next phase of expansion, until that time you have to get our products and solutions qualified. In the next expansion phase, that's going to happen.

If you look at it, when you are talking about BSNL only, you are probably referring to only the wireless products, because wireless products are deployed widely in the India private operators. When the question comes to, I don't think there's ever an issue of why aren't you deployed in beyond the BSNL's mobile network.

As I said, most of the operators have finished their significant phase of their deployment, we are also targeting when they get to the next phase of expansion, we target to be part of that. More importantly, the traction is coming from markets where there is new 5G deployment happening.

They need new vendors for doing it, because many of these countries don't get the attention or the pricing or the products that they need for their markets. As a new vendor, we are more suited and more responsive to their needs, right?

Because they're not like large tier-1 pan-country operators. Our initial business is with emerging market operators, tier-1, tier-2 in smaller markets.

The other thing is that we are many places we are deploying in partnership with solutions with other companies. I mentioned about partnerships with NEC, Rakuten.

There are other partners that we have signed up and are signing up. Many of them are like a joint solution where they have access to the customer, we are providing our radio technology, they are providing some of their CU/DU technology, and so on, right?

Or we are providing the core and they are providing part of the network. This kind of joint solutions is also what is giving us a lot of traction.

This issue doesn't really come up. The fact that we have deployed a network of this scale, which is working successfully and well commercialized and BSNL turning profits and increasing customers, I think it's a very strong testimony to really go and approach our international customers with.

That's great, sir. Just a follow-up on this.

We are learning some POC trials with VI also, that's what I've been reading in the papers. Since VI is also going to expand further in 5G and more on 4G as well, do we see a case in future where we might also be a partner to VI and where we can provide our wireless gear to them?

As I mentioned, with many of these operators, without taking specifically names, I would say that yes, the fact that we are doing POCs and trials is basically to get to that stage where we qualify for their next phase of expansion, and we become one of the qualified vendors when they actually start procuring equipment for the next phase of expansion. Yes, the trials are actually for that purpose, and the trials will be across multiple bands, all the different bands that they need, and they are qualifying our equipment thoroughly before they get to the next level of vendor selection.

Okay.

One last question from my side, sir, then I can join back the queue. I attended the IMC recently, and one of the guys explained to me the DCI stack that we are trying to make.

One part of it is also the GPU vendor onboarding that we need to do in order to complete our stack. Just if you can comment on that, are we in discussion with those GPU vendors also?

Where are we in this stage of DCI where we can have the DCI ready and then we can, go outside and wait for it? Also, if I understand correctly, we are also trying to do some kind of POC with the data center for TCS on a smaller scale for now.

If you can just elaborate on both of these questions, that's my last question.

No, our approach to this market is not partnership with the GPU vendors. We are partnering with people who are building the entire data center rack, which consists of the compute, with the server-based, GPU-based, the compute, and then providing the networking solutions, right?

The interconnectivity of data centers, some of the data center switching elements. We are working with the system integrators who are building the entire substance kind of a thing and not with the direct end customer.

The focus more largely is more on the connectivity between the data centers on the data center interconnect. That's where we are and as I said that the approach is not working directly with the GPU vendors or building a complete stack with them.

Okay. Okay.

Understood, sir. Thank you so much for answering all my questions.

Thank you.

Thank you, Tushar.

Hello. Am I audible?

You are audible, sir. You may proceed.

Sir,

on the product pipeline side, I have two, three questions. First is that you have mentioned regarding the AI and 6G and all.

I think in annual reports and the last concalls and all, we also have, I think, getting the trial on the Kavach side on the railway. If you can provide the insights on that first thing?

Second is on the product of the AI DCI. In last 6 to 8 months, are we able to get any orders on those products?

What kind of opportunity in terms if you can provide either in range or quantum we are seeing on the AI DCI products?

This is Kumar. Let me answer the railways.

We are deployed in railways, a 5G network, 700 MHz on a trial section, okay? This is a 700 MHz communication network.

It is not only for Kavach. It can potentially be used for Kavach, but it is all for the internal communication needs of railways, okay?

That we got the PO sometime ago, and we have deployed a trial section. Based on the results of the trial, we expect to expand.

Regarding the AI, I will ask Anand to Yeah.

Yeah. I think for the data center interconnect, yes, we've been part of this data center interconnect network for with our existing products, as well as the newer optimized data center product that we have.

This connectivity is not only in India, it has been across many other countries as well, internationally. It's not only the connection between the data centers, but also the connectivity from the enterprises to the data centers as well.

This market has been a very important and a focused market for us, and we are indeed winning several business in this area.

Okay. Coming to the financial.

In recent quarter, you have mentioned that sir 145 crores regarding the contract manufacturing process losses was including in the COGS. If you can provide like what was this, and is it recurring in nature or is it only one-time basis, if means that is the case?

Will that lead to the gross margin improvement in the next few quarters?

Kumar, I think that the provisioning was of the previous year, not the current quarter.

That was mentioned that in ended quarter

September

24.

September's 24 is 45. There's no provisioning of that sort in the current quarter.

Okay. That was no recurring in nature in few future

quarters

also?

Correct. Correct.

It was connected to the major amount of manufacturing that we did for the first 100,000 site order for [BSNL?] .

Understood. Another thing, sir, the BSNL PO that we are receiving right now,

Is it audible right now, properly?

Yeah. Yeah.

Thanks. I'm asking like the BSNL PO that we are receiving right now, how much it will in terms of percentage or if you can provide any quantum, it will reduce our inventory portions and that debt portion that we have right now, the gross debt.

Means what kind of reductions as a management we are planning in next 6 to 9 months, sir?

Yeah. As I said, I cannot give exact numbers, but as a significant part of the inventory that we have been carrying for many quarters is for this BSNL expansion order.

Over the next few quarters, you should see a significant reduction of this inventory. That's all I can say, right?

It will come down to much closer to earlier levels, which are in line with the kind of quarterly business that we do.

If you can also means answer on the gross debt side?

It's going to be a similar story in the sense that with the shipment of this new sites, so that inventory is going to get converted into collectible. With that and with the collection of the past from the initial order, as I said, we've completed some of the important milestones and those are due, which whatever comes in, significant amount is going to come in.

Again, for from a debt point of view, you're going to see a significant reduction, right? Both of these, I kind of mentioned in my presentation in the financial outlook going forward, both inventory and debt is going to come down significantly with the execution of the order.

Okay. Thank you so much, sir.

Just one more question from my side on the D2M side. Recently, I was reading that there's an RFP that is going to be issued by the government for the deployment of D2M.

If you can just comment on that, sir, how do you see this opportunity for Tejas Networks?

In Tejas, we've developed the broadcast radio heads, and we have also done this trial for a few sites around Delhi, and shown that this technology works. We're expecting system integrators who will participate in this RFP once it's issued, and they will be the ones who will actually build out the network.

We are well-positioned if this network were to happen, that when this happens, to be the broadcast radio providers, okay, to the winners. That's how we're positioning ourselves, that we will not be the system integrator.

Okay. One more question from my side.

You mentioned that we are doing POCs internationally. If you can just quantify how big are these telcos, if these are telcos?

If you can just quantify like how big networks they are having in terms of thousands, something like that?

Okay. The POCs we're doing in at least a few different telcos around the world, both in Americas and as well as Asia-Pacific, these are typically the second or third operator in those countries.

Or they're sometimes, they're building a 5G-only network, that's the case with one of the operators. In another case, somebody is building there are two incumbents, but he's building a data-only 5G network.

It's of that nature, somebody who's doing a fresh buildout. There's also incumbents who are getting into 5G where we are doing trials.

It's mostly 5G, sometimes also 4G in developing markets. These are telcos often providing voice and data services, sometimes data-only.

It's a mixed bag in terms of this POCs. We are also engaged, and Anand mentioned this earlier, with the tier-1 telcos, tier-1 markets, where they have custom radio requirements.

These radio requirements are for custom combinations of bands or there is some peculiarity in the spectrum allotment in that country where we need a special spectral emission mask or spectral characteristic for the radio. The tier-1 engagement is mainly on custom radio development, and these are tier-1s in tier-1 markets.

Okay. Sir, on the NEC side, whatever I've read is NEC's about $500 million business that they were doing in the 5G radio side, now they are pivoting into virtual radios.

Are we like the exclusive partner for NEC? How is NEC helping us in order to, get leads and where we are able to pitch to the customer with the help of NEC?

If you can just help me understand how this collaboration with NEC is playing out for us or how it could play out in the future for us?

I cannot comment on the NEC's revenue number on radios. I do not know the accuracy of that.

As we have announced, we have licensed the massive MIMO 5G radio technology from NEC, and we have started to supply that technology to some of their customers. We've also started to supply that technology to new customers, okay, where with some changes we've developed on the technology we got.

With that, we're starting to supply both to previous customers of NEC and new customers of ours. That's about all I can say.

I cannot comment on the revenue numbers.

Yeah. Part of the agreement that we are their radio development partner for many of their future radios, and we are engaged in developing many of their new-generation radios for their customers in their international markets.

That's the skill of the radio partition that we have with them.

Okay. Okay.

Thank you so much, sir. Thank you.

Yes. Yeah.

If there are no more questions, I think we can close the call a bit early, I guess.

Sure. Thank you very much.

Thanks a lot for taking the time to attend the call. I know it's the festive season, it's Navratri, and all of us want to get back to our celebrations.

Want to leave with a parting thought that there's a lot of progress that has happened in the company in Q2, especially with the winning of the new BSNL opportunity. Looking forward, this is going to give a significant momentum to the company, both not only in terms of the revenues in the next few quarters, but also the reduction of inventory, reduction of our debt, reduction of receivables, and all those kind of things.

Going forward, we should be seeing a much improved financial performance going forward from the company. Okay?

Thank you very much, and look forward to talking to you again at the end of next quarter. Thank you.