Vijay Kedia-Backed Tejas Networks Jumps 7% After ₹189 Crore PLI Incentive from Ministry of Communications
Shares of Tejas Networks Ltd, a company backed by ace investor Vijay Kedia, surged over 7% in Monday’s trading session following the receipt of ₹189.16 crore from the Ministry of Communications under the Production-Linked Incentive (PLI) Scheme. This financial boost marks a crucial step in India’s push to strengthen its telecom and networking infrastructure.
Stock Performance and Price Surge
Tejas Networks’ stock price jumped 7.3% to an intraday high of ₹815.70, up from its previous close of ₹760.45 per share. However, by the end of the session, it settled at ₹791.70.
Over the past five years, the stock has delivered a massive 2,400% return, demonstrating the company’s strong growth trajectory and investor confidence.
Why Did Tejas Networks Receive ₹189 Crore?
The Ministry of Communications, Department of Telecommunications, disbursed ₹189.16 crore to Tejas Networks on March 29, 2025, as part of the PLI Scheme for Telecom and Networking Products.
- This amount represents 85% of the total incentive for the first two quarters of FY 2024-25.
- The remaining 15% will be released later as per the PLI Scheme guidelines.
This incentive aligns with the government’s mission to boost local manufacturing, innovation, and infrastructure development in the telecom sector. It will help Tejas Networks enhance its wireless and wireline networking solutions and expand its global footprint.
Growth in Wireless & Wireline Business
Wireless Business Expansion
Tejas Networks is making significant strides in 4G and 5G wireless infrastructure.
- The company has successfully supplied RAN (Radio Access Network) for over 27,000 sites, bringing its total site deployments to more than 86,000 for BSNL’s 4G/5G network.
- Additionally, it is conducting Proof of Concepts (PoCs) with domestic operators for 4G and 5G technologies.
- The company is in talks with multiple international operators to customize 5G radios for country-specific frequency bands.
Wireline Business Growth
In the wireline segment, Tejas Networks has secured major contracts with top telecom players:
- Signed a three-year deal with Vodafone Idea to supply equipment for their nationwide 4G and 5G mobile backhaul network.
- Selected as the broadband equipment supplier for BharatNet Last Mile Connectivity (LMC) Project in Tamil Nadu.
- Completed a PoC and received initial orders for a network modernization project in the U.S..
- Secured an international order from an Asian telecom operator for the expansion of their mobile backhaul network.
These projects reinforce Tejas Networks’ reputation as a leading telecom equipment provider, both domestically and globally.
Strong Financial Growth
Quarterly Performance
Tejas Networks reported exceptional financial growth in Q3 FY25:
| Metric | Q3 FY25 | Q3 FY24 | % Change |
|---|---|---|---|
| Revenue | ₹2,642 Cr | ₹560 Cr | +372% |
| Net Profit | ₹166 Cr | (₹45 Cr) Loss | Turnaround |
- The company swung from a net loss of ₹45 crore in Q3 FY24 to a net profit of ₹166 crore in Q3 FY25.
- This performance highlights strong revenue generation and cost efficiency.
Key Financial Ratios
Here’s a snapshot of Tejas Networks’ key financial ratios:
| Metric | Value |
|---|---|
| Market Cap | ₹13,956 Cr |
| Stock Price (Current) | ₹792 |
| 52-Week High/Low | ₹1,495 / ₹647 |
| P/E Ratio | 21.0 |
| Industry P/E | 23.0 |
| Book Value | ₹212 |
| ROCE (Return on Capital Employed) | 3.68% |
| ROE (Return on Equity) | 2.06% |
| Debt-to-Equity Ratio | 0.78 |
| Intrinsic Value | ₹654 |
| EPS (Earnings Per Share) | ₹38.6 |
| Dividend Yield | 0.00% |
| Promoter Holding | 54.0% |
Despite strong revenue growth, the company’s ROCE and ROE remain relatively low, indicating potential areas for improvement in capital efficiency.
Who Owns Tejas Networks? (Shareholding Pattern)
As of December 2024, the company’s ownership structure is as follows:
- Promoters: 54.01%
- Foreign Institutional Investors (FIIs): 8.04%
- Domestic Institutional Investors (DIIs): 4.65%
- Retail Investors: 32.65%
- Vijay Kedia’s Stake (via Kedia Securities): 1.31%
With over half of the shares owned by promoters, and increasing FII interest, Tejas Networks remains a solid institutional bet.
Conclusion
Tejas Networks’ recent PLI Scheme funding is a game-changer for the company. With strong revenue growth, a booming wireless and wireline business, and promising future projects, the stock remains a top pick for investors. However, it faces challenges in improving return ratios and managing debt.
Q&A: Key Takeaways from the Article
1. Why did Tejas Networks’ stock surge by 7%?
Tejas Networks’ stock jumped 7.3% after the company received ₹189.16 crore from the Ministry of Communications under the PLI Scheme for Telecom and Networking Products.
2. What is the PLI Scheme, and how does it benefit Tejas Networks?
The Production-Linked Incentive (PLI) Scheme aims to boost local telecom manufacturing. Tejas Networks will use the funds to expand its business, develop new products, and strengthen its presence in the telecom industry.
3. How has Tejas Networks performed financially?
- Revenue surged by 372% YoY in Q3 FY25 to ₹2,642 crore.
- The company turned profitable with a ₹166 crore net profit, compared to a ₹45 crore loss in Q3 FY24.
4. What are Tejas Networks’ key business segments?
- Wireless Business: Supplies 4G/5G RAN equipment to BSNL and other global operators.
- Wireline Business: Partnered with Vodafone Idea and BharatNet for backhaul and broadband expansion.
5. What is Vijay Kedia’s stake in Tejas Networks?
Vijay Kedia holds a 1.31% stake in Tejas Networks through Kedia Securities Private Limited.
6. Should you invest in Tejas Networks?
With strong growth prospects, government backing, and increasing telecom demand, Tejas Networks remains an attractive investment. However, investors should watch return ratios and debt levels before making a decision.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.