Market Watch · February 26, 2026
Tejas Networks Surges on 5G Massive MIMO Deal with NEC
On February 26, 2026, shares of Tejas Networks Ltd rocketed as much as 16% in a single session — snapping a four-day losing streak — after the Tata Group-owned telecom equipment maker announced a landmark strategic partnership with Japan's NEC Corporation to manufacture and supply carrier-grade 5G Massive MIMO radios for global markets.
What is Tejas Networks?
Tejas Networks is a Bengaluru-based telecom equipment company, part of the Tata Group, that designs and manufactures networking products like optical networking gear, broadband access equipment, and now 5G radio access network (RAN) hardware. It is publicly listed on Indian stock exchanges and has been one of India's key bets in the global 5G supply chain race.
The company operates under India's Production Linked Incentive (PLI) scheme for telecom products — a government initiative that rewards domestic manufacturers with cash incentives to reduce India's dependence on foreign telecom gear, particularly from Chinese vendors.
The NEC Deal: Why It Matters
The headline catalyst on February 26 was the announcement of a strategic agreement with NEC Corporation, one of Japan's largest technology conglomerates with deep roots in global telecom infrastructure. Under this deal, Tejas will manufacture carrier-grade 5G Massive MIMO radios for NEC, which will then deploy them through its global telecom network relationships.
Massive MIMO (Multiple Input, Multiple Output) is the backbone of 5G performance — arrays of dozens to hundreds of antennas that dramatically boost network capacity, speed, and efficiency. Making these at scale, in India, is a significant industrial milestone.
— 5G Technology ContextThe partnership is designed to be long-term and collaborative — both companies plan to co-create next-generation 5G and 5G-Advanced solutions, positioning Tejas not just as a manufacturer but as a genuine technology partner in the global Open RAN ecosystem.
Quarterly Financials at a Glance
Despite the share price surge, Tejas Networks' recent financials tell a challenging story — making this rally a forward-looking bet, not a reflection of current earnings.
Revenue collapsed roughly ~88% YoY in Q3 FY26, and the company posted a net loss of ₹196.55 crore. The NEC deal is viewed by analysts as a potential turning point for recovery.
4 Key Catalysts Behind the Surge
NEC Strategic Partnership
Tejas Networks signed an agreement with Japan's NEC Corporation to manufacture and supply carrier-grade 5G Massive MIMO radios. The deal positions Tejas as a globally credible 5G hardware supplier and opens doors to NEC's worldwide telecom customers.
Global Supply Chain Diversification
Western and Asian telecom operators are actively seeking alternatives to dominant Chinese vendors (Huawei, ZTE). Tejas, leveraging India's "Atmanirbhar Bharat" manufacturing push, is emerging as a credible alternative, tapping into a multi-billion dollar market shift.
PLI Incentive of ₹69.97 Crore
On February 18, 2026, Tejas received ₹69.97 crore as the balance incentive for FY 2024–25 under the government's PLI scheme for telecom products, providing a near-term financial cushion ahead of the NEC announcement.
Market Sentiment Rebound
The stock had been on a four-day losing streak before this announcement. The news acted as a powerful sentiment catalyst, with Tejas significantly outperforming both the broader Sensex index and the telecom sector on the day.
India's PLI Scheme: Fueling Domestic 5G Manufacturing
The Production Linked Incentive (PLI) scheme for telecom products was launched to help Indian manufacturers compete globally. Tejas is one of the primary beneficiaries, receiving incentives for hitting domestic production targets — creating a virtuous cycle of investment and output.
The Other Side: Risks to Watch
⚠️ Financial Headwinds Remain Significant
Despite the excitement, investors should be clear-eyed: Tejas Networks reported a consolidated net loss of ₹196.55 crore for Q3 FY26 (October–December 2025), with revenue falling approximately 88% year-on-year. The stock is still down roughly 16% since January 1, 2026, and sits far below its 52-week high of ₹914.40. The NEC deal is a positive signal, but revenue materialisation from manufacturing partnerships can take several quarters. Investors should treat this as a high-conviction, high-risk play on India's 5G future — not a near-term earnings recovery story.
The Bottom Line
Tejas Networks' 16%+ surge on February 26, 2026 is a story about future potential, not present profits. The NEC partnership represents exactly the kind of anchor relationship the company needs to commercialise its 5G manufacturing capabilities and begin generating meaningful revenue. With PLI cash in hand, Tata Group backing, and global appetite for supply chain diversification at an all-time high, Tejas is strategically well-placed — even if the financial results need to catch up.
The real test will be in the coming quarters: Can Tejas convert the NEC partnership into production volumes, shipments, and eventually — profits?
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