Telecom stock jumps 4% after company to supply broadband equipment for Tamil Nadu

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In the rapidly evolving landscape of digital infrastructure, a telecom project is set to transform connectivity in rural Tamil Nadu. The ambitious initiative promises to bridge the digital divide by extending high-speed internet access to thousands of public institutions and households.

This comprehensive network expansion represents a significant leap forward in bridging technological gaps in underserved regions. By implementing optical networking solutions, the project aims to revolutionise communication infrastructure and empower rural communities with unprecedented digital access.

Share Price Movement

The share price of Tejas Networks Limited hit the upper circuit of 4.56 percent to Rs. 1,402.7 per share on Thursday, an increase from its previous close of Rs. 1,341.48 per share. The market capitalisation now stands at approximately Rs. 22,957 crore as of December 05, 2024.

What happened

Tejas Networks has been selected to supply GPON broadband equipment for Tamil Nadu’s BharatNet Last Mile Connectivity project, implemented by TANFINET with Polycab India Limited as the Master System Integrator. The project aims to connect 50,000 government institutions, public health centres, and schools while enabling FTTH services for rural households and enhancing digital access statewide.

Q2 Financial Highlights

According to its recent filing, in the quarter ending September 2024, Tejas Networks’s consolidated revenue from operations has increased by 609 percent YOY from Rs. 2,811 crore in Q2 FY24 to Rs. 396 crore in Q2 FY25 and increased by 79.8 percent QoQ from Rs. 1,563 crore in Q4 FY24.

The company’s consolidated net loss has gone from a negative Rs. 13 crore in Q2 FY24 to a profit of Rs. 275 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 257 percent QoQ from Rs. 77 crore.

Market Outlook

The telecommunications industry is undergoing a significant transformation, driven by the increasing adoption of new technologies such as 4G/5G, multi-gigabit fibre broadband, and bandwidth-intensive applications. As internet usage becomes more ubiquitous and consumers demand higher-quality connectivity, the industry is witnessing a dramatic increase in data traffic and capital investments in mobile infrastructure, optical transmission, and broadband access networks.

The global telecom service provider equipment market is expected to grow substantially with the wireless segment and broadband access services being the key drivers. The industry is poised to deliver high-speed connectivity to people, homes, offices, and governments in a cost-effective manner.