Tejas Networks receives Rs 189 crore as PLI incentive for FY25

Tata Group-backed Tejas Networks Ltd on Sunday said it secured Rs 189.17 crore from the Ministry of Communications, Department of Telecommunications, as an incentive under the Production Linked Incentive (PLI) scheme for Telecom and Networking Products for the financial year 2024-25 (FY25).

The incentive is a part of the Centre's initiative to promote domestic manufacturing and strengthen India's telecom infrastructure.

"Tejas Networks Ltd on March 29, 2025, received an amount of Rs 189.1657 crore 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 per cent, of the incentive for the first two quarters of FY 2024-2025 and the balance amount is expected to be released subsequently in accordance with the Production Linked Incentive Scheme Guidelines," the company stated in a BSE filing.

On the stock-specific front, Tejas Networks settled 2.16 per cent lower at Rs 759.95 on Friday. At this closing price, the scrip has corrected 35.62 per cent on a year-to-date (YTD) basis.

Technically, the scrip traded lower than the 5-day, 50-, 100-, 150-day and 200-day simple moving averages (SMAs) but higher than the 10-day, 20-day and 30-day SMAs. Its 14-day relative strength index (RSI) came at 49. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 19.91 against a price-to-book (P/B) value of 3.59. Earnings per share (EPS) stood at 38.17 with a return on equity (RoE) of 18.02. According to Trendlyne data, Tejas Networks has a one-year beta of 2.1, indicating high volatility.

Tejas Networks 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 December 2024, promoters held a 54.01 per cent stake in the company.