Tejas Networks Surges After Japan Order: Will the Rally Sustain?

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Can shares of Tejas Networks gain more with possible re-rating after the 5g order from NEC Corporation

By S. JHA

Mumbai, March 3, 2026 — Tejas Networks broke many hearts after the stock went crashing after its takeover by the Tata Group. Famed for ownership in parts by investment legend Vijay Kedia, shares of Tejas Networks for many failed to live up to the expectations. But shares of Tejas Networks simply blasted in last three trading sessions — soaring over 50 percent despite war in the Middle East.

Shares of Tejas Networks were languishing at about ₹320 level on Thursday morning — forgotten and dumped. “The story is over,” rued past investors. Even Kedia had exited the stable at peak of share price.

But the investment terminal exploded on Thursday morning. The news flash — a big order from Japan. Tejas Networks finally shed the label of a BSNL supplier. The company gained the tag of a giant killer. It entered a developed market, beating top telecom MNCs.

Will the shares of Tejas Networks win back past fans? Will Kedia buy again into the stock? Will the Tata-owned stock trigger a re-rating? Answers may come in due time. But the verdict is already out. Shares of Tejas Networks are now in the spotlight.

The Tejas Networks share reacted with the trigger of bagging a manufacturing partnership with Japanese technology giant NEC Corporation to produce 5G RAN (Radio Access Network) radios.

The Work Order: Why It Matters

According to commentary circulating among market participants, including investor Tushar on X, the key development is Tejas Networks becoming a manufacturing partner for NEC’s global 5G RAN equipment business. NEC, historically known as a telecom major, now derives nearly 70% of its revenues from IT services, with the remaining 30% from social infrastructure and telecom services. Within that segment, NEC’s global 5G RAN business — estimated at around $600 million in FY2025 revenues — has reportedly been classified as “non-core.”

This classification is crucial. If NEC is restructuring or de-prioritising the capital-intensive hardware side of its 5G operations, outsourcing manufacturing to Tejas could: Reduce NEC’s operational burden; Provide Tejas with access to global RAN deployments; and Position Tejas as a supplier for both new and expansion projects.

In theory, this opens a global revenue pipeline — not just a one-off order.

Markets often reward telecom equipment companies when they move from domestic dependence to global supply chains.

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Financial Context: What the Numbers Say

A look at historical financial data compiled from Screener.in shows that Tejas Networks has experienced significant volatility in both revenues and profitability over recent years.

Key trends observed in past financial statements: Revenue swings depending on large telecom orders; Periods of losses during capex cycles; Improved operating performance after integration with Tata Group ecosystem; and High sensitivity to government and large enterprise contracts.

The company’s margins have historically depended on execution scale and product mix. Therefore, sustained global manufacturing orders could potentially stabilise revenue visibility — something investors typically reward with higher valuation multiples.

“If NEC’s $600 million RAN business is indeed under restructuring pressure, Tejas may be stepping into a business segment undergoing margin compression. That would mean scale without necessarily high profitability,” said an analyst.

Moreover, global RAN markets remain intensely competitive, dominated by established players from Europe and Asia. Any gain in share would require sustained execution.

Market Psychology at Play

The rally also reflects broader themes: India’s push for telecom self-reliance; Export-driven manufacturing narratives; Global diversification away from concentrated supply chains; and Speculative appetite for 5G and defence-linked plays.

Risks Investors Should Watch

Order Conversion Risk – Are these confirmed contracts or framework agreements?
Margin Sustainability – Is Tejas manufacturing at high value-add or low-margin assembly?
Execution Complexity – Global telecom deployments involve strict quality and timeline benchmarks.
NEC’s Strategic Intent – If the business is non-core, is NEC scaling down or repositioning?

Past Trend Comparison

Tejas Networks has previously witnessed sharp rallies during: Major government telecom reforms; Defence communication contracts; and Strategic ecosystem announcements.

In many cases, price action ran ahead of earnings visibility before normalising. The current 50% spike mirrors those episodes — strong sentiment followed by eventual earnings validation tests.

If this partnership evolves into a stable export manufacturing pipeline, Tejas Networks could transition from a domestically cyclical telecom supplier into a global 5G equipment manufacturing hub. If not, the rally may represent speculative repricing around headlines.

Markets are clearly betting on the former. Whether fundamentals catch up will become evident over the next two to three quarterly results.

(This article makes no investment advice.)