Telecom stock jumps after receiving ₹70 Cr PLI incentive from Ministry of Communications

Synopsis: Telecom stock has received almost Rs 70 crore PLI incentive, strengthening liquidity, improving cash flows, and supporting expansion plans. The company in content has a 3 year sales CR of 153 percent.

A small-cap stock in the telecom sector, engaged in manufacturing and supplying networking and broadband equipment, moved higher after receiving about Rs 70 crore under the PLI scheme. The incentive payout strengthens liquidity, supports expansion initiatives, and improves financial flexibility, while investors track order inflows, revenue trends, and overall operational performance. With a market cap of almost Rs 6,000 Cr, Tejas Networks Ltd saw its stock hit an intraday high of Rs 343 which is 2 percent higher than the previous close of Rs 336. 

What’s the News?

Tejas Networks Limited informed the stock exchanges that it has received approximately Rs 70 crore from the Ministry of Communications under the Production Linked Incentive or PLI scheme for telecom and networking products. This amount represents the final 15 percent incentive payout for FY25, further strengthening the company’s cash flows and providing additional financial support for its ongoing expansion and growth initiatives.

Earlier, in Q3FY26, Tejas Networks Ltd received about Rs 85 crore as the first tranche of Production Linked Incentive (PLI) payouts for FY25. With this the company back then cumulatively received Rs 397 crore in PLI incentives for the year, significantly strengthening liquidity, improving cash flows, and supporting operational momentum in line with the scheme’s prescribed guidelines.

The Order Book and Revenue Mix

As of Q3FY26, the company’s order book stands at over Rs 1,300 crore, with 92 percent originating from India and 8 percent from international markets. A similar pattern is reflected in the revenue mix, where domestic operations contribute 85 percent, while international markets account for the remaining 15 percent.

Business & Financial Overview

Tejas Networks Ltd is a leading Indian telecom equipment manufacturer, designing and supplying optical, wireless, broadband, and data networking products. Part of the Tata Group, it serves telecom operators, enterprises, utilities, and governments globally, supporting 4G, 5G, fiber broadband, and large-scale digital infrastructure deployments across diverse markets.

In the latest quarter the company saw its YoY revenue fall by 88 percent, going from Rs 2,642 Cr in Q3FY25 to Rs 307 Cr in Q3FY26, while the QoQ went up by 17 percent from Rs 262 Cr in Q2FY26. The company had made a Net Profit of Rs 166 Cr in Q3FY25, but this turned to become a loss of Rs 197 Cr in Q3FY26, but on QoQ basis this number reduced from the loss of Rs 307 Cr in Q2FY26.

The company has a 3 year sales CAGR of 153 percent, while the TTM is at a negative 68 percent. The company’s 3 year profit CAGR is at 109 percent, while the TTM number is at a negative 216 percent. The company also has a ROCE of 15 percent and a ROE of 13 percent.

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