Tata Group stock skyrockets 12% after BSNL receives ₹61,000 Cr spectrum boost to launch 5G service

The shares of the data networking products manufacturer gained up to 12 percent after BSNL staple Rs 61,000 crore worth of 5G spectrum allocation. 

Price Movement 

With a market capitalization of Rs 15,463.48 crore, the shares of Tejas Networks Ltd were trading at Rs 877.00 per share, increasing around 9.27 percent as compared to the previous closing price of Rs 803.15 per share. 

Reason for Rise 

The share of Tejas Networks Ltd has seen positive movement after BSNL’s Rs 61,000 crore 5G spectrum allocation. The DoT assigned premium bands like 700 MHz and 3300 MHz, enabling BSNL to launch 5G in select cities, starting with Delhi, before expanding nationwide, according to sources. 

Additionally, Tejas Networks, a key supplier of 4G/5G RAN equipment and IP/MPLS routers to BSNL, is poised to benefit from the telco’s standalone 5G rollout and network expansion. In Q3 FY25, it delivered equipment for 27,000 sites, increasing total deployments in BSNL’s 4G/5G network to over 86,000. 

Financial performance 

In Q3 FY25, the company reported net revenues of Rs 2,642 crores, reflecting strong growth over FY24. PAT stood at Rs 166 crores, with EBIT at Rs 260 crores and PBT at Rs 211 crores. The order book at quarter-end reached Rs 2,681 crores, indicating sustained demand. 

Business Update 

Tejas Networks completed RAN supplies for over 27,000 sites in Q3, totaling 86,000+ sites for BSNL’s 4G/5G network. It developed radios across five bands (700 MHz to 2.6 GHz) with single and dual-band options. BSNL now has 65,000+ operational sites, boosting customer adoption. 

Tejas Networks secured a 3-year contract with Vodafone Idea to supply equipment for its nationwide 4G/5G mobile backhaul network. It was also selected as a broadband equipment supplier for BharatNet’s Last Mile Connectivity in Tamil Nadu, focusing on FTTX GPON technology. 

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Upcoming Projects and Opportunities 

The company expects major opportunities from BSNL’s 4G expansion, 5G upgrades, and BharatNet Phase 3 in Q4 FY25 and Q1 FY26. It is investing in the utility segment growth and WDM backbone expansion. Ongoing POCs for private 5G and US network modernization signal strong future prospects.

Management comment 

Management remains optimistic about future growth, driven by strong business drivers and ongoing projects. Despite challenges in the government sector and international business, they are confident in their strategic positioning and product offerings. The company is well-placed to capitalize on opportunities in the evolving telecommunications landscape. 

Company Profile 

Tejas Networks Ltd develops and produces wireline and wireless networking products, with an emphasis on technology, innovation, and R&D. TNL carrier-class solutions are utilized by telecom service providers, utilities, governments, and defense networks in over 75 countries. 

Written by Abhishek Singh

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