This Tata Group stock crashes 11% as company posts surprise Q4 loss
Tejas Networks shares plunge 11% as
Shares of Tejas Networks Ltd, a Tata Group company, crashed 10.87% to ₹765.60 on Monday after the firm reported a net loss during the March 2025 quarter, compared to a net profit in the same period last year. The stock emerged as one of the top losers in today's session.
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Tejas Networks reported a net loss of ₹71.8 crore for the fourth quarter (Q4FY25), marking its first quarterly loss after four consecutive profitable quarters. In contrast, the company had posted a net profit of ₹146.8 crore in the March 2024 quarter.
While revenue for the quarter increased by 43.7% year-on-year to ₹1,906.9 crore, the company's profitability took a massive hit due to exceptional items. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell sharply to ₹21 crore, compared to ₹306.42 crore a year ago.
The company made a provision of ₹117 crore for inventory obsolescence and write-downs, taking the full-year figure to ₹181 crore. Additionally, it wrote off ₹22 crore in expenses related to intangible assets under development, further impacting the bottom line.
Trade receivables also ballooned to ₹4,884 crore, reflecting higher shipments during the quarter. Borrowings stood at ₹3,269 crore, mostly utilized for working capital needs.
Despite the weak quarter, Tejas Networks stated in its investor presentation that it expects a strong opportunity pipeline in FY26, particularly in the government and private sectors, along with expanding its global sales footprint. However, the unexpected loss and rising working capital pressures have rattled investor confidence, leading to today's steep decline in the stock price.
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