Tejas Networks Soars 7% After Securing ₹189 Crore PLI Incentive from the Ministry of Communications
The company a Vijay Kedia-backed stock, witnessed a sharp rise of over 7% in Monday’s trading session after the company received ₹189.16 crore from the Ministry of Communications under the Production-Linked Incentive (PLI) Scheme. This funding marks a crucial boost for the company, which is a key player in manufacturing wireline and wireless networking products.
Stock Performance: A Strong Rally Followed by Stability
On April 1, 2025, Tejas Networks’ stock surged to an intra-day high of ₹815.70, reflecting a 7.3% jump from its previous close of ₹760.45. However, after some profit booking, the stock settled at ₹791.70 by the end of the session.
This remarkable rise comes in the backdrop of a massive 2,400% return the stock has delivered over the last five years, making it one of the most lucrative investments in the Indian telecom equipment space.
PLI Incentive: A Boost for Business Expansion
Tejas Networks received ₹189.1657 crore as the first installment under the PLI Scheme for Telecom and Networking Products on March 29, 2025. This amount represents 85% of the total incentive for the first two quarters of the FY 2024-25, with the remaining balance expected to be released later as per the scheme’s guidelines.
The government’s PLI scheme aims to promote indigenous manufacturing in telecom and networking, providing financial support to companies that meet specific production and performance criteria. This incentive will allow Tejas Networks to:
✅ Expand its manufacturing capabilities
✅ Invest in cutting-edge 4G and 5G technologies
✅ Strengthen its position in both domestic and international markets
Wireless Business: Expanding 4G and 5G Capabilities
Tejas Networks has successfully supplied RAN (Radio Access Network) equipment for over 27,000 sites, bringing the total number of sites delivered to 86,000+ for BSNL’s 4G/5G network.
Additionally, the company is actively conducting Proof of Concepts (POCs) with domestic telecom operators for advanced 4G and 5G technologies. Internationally, Tejas Networks is collaborating with multiple global operators to customize its 5G radios for country-specific frequency bands.
Wireline Business: Expanding Network Infrastructure
Tejas Networks is also making significant strides in the wireline sector:
📌 Vodafone Idea Contract: A three-year agreement to supply equipment for its nationwide 4G and 5G mobile backhaul network.
📌 BharatNet LMC Project: Selected as the broadband equipment provider for the Last Mile Connectivity (LMC) project in Tamil Nadu.
📌 Global Expansion:
- Completed a PoC and secured initial orders for a network modernization project in the U.S.
- Received orders from a leading Asian telecom operator to expand its mobile backhaul network.
Financial Overview: Strong Growth Momentum
Tejas Networks has reported exceptional financial growth in its latest quarterly results:
| Financial Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
|---|---|---|---|
| Revenue | ₹2,642 Cr | ₹560 Cr | +372% |
| Net Profit | ₹166 Cr | (₹45 Cr loss) | Turnaround |
This turnaround is largely driven by higher demand for telecom infrastructure equipment and the company’s focus on innovation in 5G technology.
Key Financial Ratios: A Stable and Profitable Company
| Ratio | Value | Industry Average |
|---|---|---|
| Return on Capital Employed (ROCE) | 13.16% | – |
| Return on Equity (ROE) | 12.22% | – |
| Price-to-Earnings (P/E) Ratio | 20.12 | 29.79 |
| Earnings Per Share (EPS) | ₹37.78 | – |
| Current Ratio | 2.44 | – |
| Debt-to-Equity Ratio | 0.78 | – |
With a P/E ratio lower than the industry average, Tejas Networks appears undervalued compared to its peers, making it an attractive investment option.
Shareholding Pattern: Vijay Kedia’s Stake in the Company
As of December 2024, the shareholding pattern of Tejas Networks Ltd is as follows:
| Shareholder Category | Holding (%) |
|---|---|
| Promoters | 54.01% |
| Foreign Institutional Investors (FII) | 8.04% |
| Domestic Institutional Investors (DII) | 4.65% |
| Retail Investors | 32.65% |
| Vijay Kedia (via Kedia Securities Pvt. Ltd.) | 1.31% |
Ace investor Vijay Kedia’s stake in Tejas Networks further boosts confidence in the company’s long-term growth potential.
Future Outlook: Bright Prospects Ahead
With increasing investments in 5G infrastructure, strong government support through PLI incentives, and a growing international presence, Tejas Networks is well-positioned to scale new heights. The stock’s impressive multi-year performance and its focus on expanding both wireline and wireless businesses make it an exciting prospect for investors.
Q&A: Quick Takeaways for Readers
🔹 Why did the companys’ stock rise 7%?
The stock surged after receiving ₹189 crore from the Ministry of Communications under the PLI Scheme, which supports Indian telecom manufacturing.
🔹 What is the significance of the PLI incentive?
This financial aid will help Tejas Networks expand its production, develop new 5G products, and strengthen its market presence.
🔹 How has the stock performed in recent years?
Tejas Networks has delivered a 2,400% return over five years, making it a high-growth stock in the telecom sector.
🔹 What are the company’s recent business highlights?
The company has completed major 4G/5G RAN deployments, secured global contracts, and expanded its presence in network modernization projects.
🔹 Is Tejas Networks financially stable?
Yes, the company has strong revenue growth, improving profitability, and a robust balance sheet, with a healthy ROCE and ROE.
🔹 What is Vijay Kedia’s stake in Tejas Networks?
Vijay Kedia, a well-known investor, holds a 1.31% stake through Kedia Securities Pvt. Ltd..
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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.