Tejas Networks receives Rs 123 crore under telecom PLI scheme; stock climbs

Tejas Networks Ltd has announced the receipt of around Rs 123 crore from the Ministry of Communications, Department of Telecommunications, under the Production Linked Incentive Scheme for Telecom and Networking Products. This marks the first tranche, representing 85 per cent of the eligible incentive for third quarter of financial year 2024-25 (Q3 FY25). The balance amount is expected to be released subsequently, as per the scheme's guidelines.

"We would like to inform you that Tejas Networks Limited on June 4, 2025, received an amount of Rs 122.9587 crore (Rupees One Hundred and Twenty-Two Crore Ninety-Five Lakhs Eighty-Seven Thousand only) from the Ministry of Communications, Department of Telecommunications, New Delhi under the Production Linked Incentive Scheme for Telecom and Networking Products. The said amount is the first tranche, amounting to 85% of the eligible incentive for Q3 of FY 2024-2025 and the balance amount is expected to be released subsequently in accordance with the Production Linked Incentive Scheme Guidelines," the Tata Group-backed firm stated in a BSE filing on Thursday.

The company plans to utilise the funds to bolster its network infrastructure, a move that could enhance its market competitiveness. Looking ahead, it is slated to hold its 25th annual general meeting (AGM) on June 27, 2025.

On the stock-specific front, Tejas Networks rose 1.13 per cent to settle at Rs 715.60. At this closing value, the stock has crashed 46.67 per cent in the last six months.

Technically, the scrip traded higher than the 5-day simple moving average (SMA) but lower than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 43.68. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-earnings (P/E) ratio of 18.82 against a price-to-book (P/B) value of 3.39. Earnings per share (EPS) stood at 38.03 with a return on equity (RoE) of 18.02. According to Trendlyne data, Tejas Networks has a one-year beta of 1.6, indicating high volatility.

The company produces optical and data networking products. It designs, develops and sells high-performance and cost-competitive networking products to telecommunications service providers, internet service providers, utilities, defence and government entities in more than 75 countries. As of March 2025, promoters held a 53.83 per cent stake in the company.