Tejas Networks Ltd Management Discussions

1. Macro-Economic Overview

The last financial year has been subjected to uncertainties like trade tariffs, semi-conductor component shortages, geopolitical conflicts amongst others. Enterprises across the globe were watchful and navigating these challenges from a resilience perspective. On the other hand, rapid technology advancements especially in Artificial Intelligence (AI) and related technologies, offered refreshingly different approaches to create efficiencies, offer avenues of growth and innovation. The highly volatile situation in West Asia since early March ‘26, has adversely affected the sentiments and supply chains. While the economic outlook, GDP growth, inflation etc., are best left to the economists, it appears that 2026 will continue to be volatile. Organizations are focusing on agility, automation/AI and the approach seem to be one of conserving cash & invest selectively on initiatives that have a clear path on return on investments. Globally, AI represents an inflection point as significant capex investments are being directed towards the creation of new AI infrastructure that can support compute-heavy inferencing tasks that have progressed beyond simple pattern matching to complex multi-step reasoning. If the trend continues, the AI computing infrastructure and related costs will perhaps overtake the cost of human employees in the not so distant future.

2. Telecom Industry Outlook

A robust telecommunications infrastructure is now an essential horizontal in which all other verticals ride their digitization journey, anchoring and participating in ecosystems, delivering personalization and integrating supply chains. Governments across emerging and established markets are driving initiatives such as inclusive growth, connecting the unconnected to further advance their aspirations of a digital economy. Globally there are over one billion people who are not yet connected, quite a few mobile networks which are yet to be upgraded to mobile broadband 4G/5G technology and millions of homes and enterprises yet to have high speed broadband connectivity. Global telecom industry is experiencing a surge in data usage due to increased adoption of smartphones, bandwidth-intensive applications such as high-definition video streaming, and AI-based consumer and business applications. AI is helping to generate and curate content that is expected to increase network traffic and data revenue in the coming years. The demand for AI driven compute infrastructure is driving massive capital investments in AI factories and data centers by hyper-scalers and telecom service providers and others.

AI is also catalyzing a new infrastructure super-cycle in telecom networks and a fundamental reshaping of the network architecture with the emergence of real-time inferencing at the edge. It is also accelerating the adoption and standardization of higher-speed mobile and fixed broadband technologies such as 5G-Advanced, 50G PON, higher-capacity 800G/1.2Tbps/1.6 Tbps coherent optical technologies enabling low latency and interconnectivity at scale.

Recent advances in satellite communications and broadcast technologies, and their growing convergence with mobile technologies in the form of NTN (Non-Terrestrial Networks) and D2M (Direct to Mobile) standards, are further reinforcing this trend by enabling cost-effective connectivity and content delivery in remote and underserved regions around the world.

As a result, telecom operators are expected to increase capital investments in mobile infrastructure, broadband access, optical transmission and packet switching networks to ensure that broadband services are delivered with the requisite quality, reliability and in a cost-effective manner. The key business drivers propelling this growth are summarized below:

Hyperscalers and the rise of AI Data Centers:

Migration to cloud-based services has been a major driver for network evolution over the last few years. Businesses worldwide are increasing their usage of online applications and services that are delivered over the cloud which is driving the need for high-speed data services. In addition, the advent of high-bandwidth Generative AI applications and complex AI Agents are leading to large-scale construction of hyper-scale data centres by Internet Content Providers (ICPs). ICPs have terabit-scale bandwidth requirements resulting in a demand for newer types of purpose-built data center interconnectivity (DCI) products and catalyzing a super-cycle of optical network investments. AI-powered apps are also increasing uplink traffic triggering 4G/5G network densification and offload solutions.

Investments in High-Speed Mobile Broadband Networks (4G, 5G and 6G):

The telecom industry is witnessing an increasing adoption of high-speed 4G and 5G mobile broadband technologies based on 3GPP standards. However, many parts of developing countries continue to rely on older 2G/3G technologies. As per GSMA, 65% of the population in Africa and 32% in Latin America do not have mobile Internet connectivity. Although 5G has been launched in several markets, only 54% of the global population has 5G access today. Meanwhile, ITU-T and 3GPP have already started working on 6G standards.

Accelerated Adoption of Fixed Broadband Services:

Multi-gigabit fiber (FTTx) and fixed wireless (FWA) based home and office broadband services are fast replacing copper-based broadband services. Today, on fiber-based access networks, next- generation xPON (GPON, XGS-PON) technologies can deliver up to ten gigabits of access speed to a fixed residence, cell tower or a business location. Newer xPON technology variants such as HS- PON are scaling this further to 50G speeds in the near future. In India, over 60 million subscribers have a fixed broadband connection as of February 2026 (source: TRAI) and the pace of adoption is growing rapidly. A similar trend is also being observed globally with the number of fixed broadband subscribers expected to reach 1.6 billion subscribers by 2030.

Growing Demand for High-capacity Optical and Routing Products:

The rollout of high-speed access networks for mobile and fixed broadband, availability of powerful yet affordable handsets and an AI-led enterprise digital transformation are driving an exponential surge in data traffic worldwide. This, in turn, is driving a greater demand for high-capacity transmission and routing equipment globally. India is expected to be one of the fastest growing markets in this segment since the country is vastly underserved in terms of fiber connectivity to cell-sites, with less than 40% connectivity.

Increasing Government Investments to Bridge Digital Divide:

As an always-on, high-speed broadband has emerged as a basic necessity in the post-Covid world, Governments around the globe, whether in India, United States or Europe are making public funds available for ubiquitous fiber broadband in order to bridge the growing urban-rural digital divide in their countries. Government of India is rolling out one of the largest greenfield networks for rural broadband connectivity called BharatNet with over 200,000 gram panchayats have already connected in Phases 1 and 2. In Phase-3, BharatNet reach will be extended to nearly 700,000 villages in the country and significant investments are also happening in other countries on similar initiatives.

Structural Changes Favoring Alternative Vendors:

The global telecommunications industry is witnessing certain fundamental structural changes that are likely to allow companies with modern & innovative offerings to gain a larger share of the telecom equipment market. Unlike previous mobile technology generations that required a tightly-coupled RAN and Core solution, the preference is for a more open, disaggregated architecture with a cloud-based core enabling service providers to adopt an unbundled multi-vendor solution for RAN (O-RAN) and Core. Secondly, with growing geopolitical tensions, telecom service providers are exploring newer, proven and trusted alternatives for their telecom equipment supplies, preferably manufactured and supported locally.

Utility Network Modernization:

The emergence of bandwidth-intensive applications such as IP SCADA (Supervisory Control and Data Acquisition), Smart Grid, Video Surveillance, VoIP, LAN, Internet etc., is resulting in a rapid growth of data traffic in utility networks such as power, railways, oil and gas, public safety etc., This is driving the need to upgrade and replace their operational networks, currently based largely on MSPP products, with packet technologies such as Carrier Ethernet, MPLS-TP/PTN and IP/ MPLS. Utilities are other critical infrastructure enterprises are increasingly deploying advanced 4G and 5G wireless technologies to build secure, reliable and low-latency networks to transform their mission-critical operations. CNPN (Captive Non-Public Networks) and Kavach are examples of such initiatives from India.

3. India Market Outlook

As the industry grapples with geopolitical uncertainties and other global headwinds, Government of India (GOI) recognizes that to realize the vision of a "Viksit Bharat" by 2047, it is important for the country to achieve technological sovereignty in critical telecom product areas that underpin a modern, resilient and secure network infrastructure. GoI has therefore formulated a suite of forward-looking policies to promote self-reliance in the telecommunications sector by incentivizing domestic telecom equipment companies with strong R&D capabilities and in-house IPR with initiatives such as Production Linked Incentive (PLI), "The Telecommunications Act, 2023", Research, Development and Innovation (RDI) Fund to boost domestic design & manufacturing of telecom and networking products.

4. Corporate Overview and Positioning

Tejas Networks is a homegrown telecom and networking solution provider specializing in architecting wireless and wireline networks. We are uniquely positioned to address both the market trends of global telecom market needs and Indias vision of self-reliance in telecom technology.

At the heart of our future lies a foundational requirement: robust, scalable, and resilient connectivity. The proliferation of AI workloads, data centers, edge computing, and data-center interconnect (DCI) networks is driving unprecedented demand for high-capacity networks and advanced telecom infrastructure. AI does not operate in isolation—it thrives on seamless data movement and real-time connectivity. This is where Tejas Networks plays a critical role. With deep expertise in optical transport, wireless access, and next-generation networking technologies, we are well positioned to offer the digital backbone required for this new era of intelligence-led growth.

Tejas Networks has developed an end-to-end portfolio of wireless and wireline products supplemented with satellite & broadcast solutions. These include 4G/5G radio access (LTE/NR), converged 4G/5G core, fiber-to-home & fiber-to-enterprise (GPON/XGSPON), optical transmission (DWDM/ PTN/OTN), carrier switching and routing (Ethernet, IP/MPLS), satellite and broadcast networking products.

Tejas Networks is an R&D driven company with approximately 68% of its workforce employed in R&D. Tejas is headquartered in Bengaluru (India), with offices across India and in several countries spanning six continents.

Tejas is actively contributing to global 5G/6G standards through its work in Indias telecom standards organization (TSDSI), Bharat 6G Alliance, ITU-R Working Groups, 3GPP, TIP and O-RAN Alliance. The company has filed 676 global patents of which 371 have been granted.

Tejas is ranked among the top-10 suppliers in the global optical aggregation and optical line terminal markets (source: Omdia). We maintain a robust global supply chain to meet customer expectations through timely deliveries and quality products.

5. Our Customers

Our customer segments include Communications service providers (CSPs) for both mobile and fixed broadband, internet service providers (ISPs), broadband bandwidth providers, data center operators, enterprises like utility companies, defense and government entities who build mission-critical networks to meet their in-house telecommunication requirements.

Since inception, the company has deployed over one million of its software-defined hardware™ systems in 500+ carrier networks across 75 countries. All major private telecom operators, telecom PSUs and utilities in India use Tejas products in their networks. Tejas is also a domestic supplier of optical and data networking products for various government projects of national importance, having security/ strategic implications such as national knowledge networks and defense networks.

Report 2025-26

6. FY26 Highlights

FY26 was a year of consolidation and transition for Tejas Networks as we focused on laying the foundation for long-term success. During the year, multiple technologies and products that the company had developed over the last few years reached commercialization stage, which included our 4G/5G RAN products, access/aggregation IP/MPLS routers and 400G+ coherent DWDM equipment. Tejas continued its innovation journey by launching advanced 64T64R massive MIMO radios, terabit-scale DWDM equipment and purpose-built, multi-terabit Data Center Interconnectivity (DCI) products. The company registered multiple international wireless wins and received initial purchase orders for commercial rollouts after successfully concluding rigorous field trials. Moreover, we made significant progress on our Go-to-Market (GTM) partnership with Rakuten Symphony.

6.1. Significant Business Wins and Execution

Successful commercial launch of BSNLs pan-India 4G network by the Honble Prime Minister of India, powered by Tejass indigenously designed 4G/5G RAN products at ~100,000 sites.

Emerged as one of the largest suppliers of IP/MPLS routers for BharatNet Phase III. The company was selected as the router OEM for 7 out of the 12 packages announced in FY26.

Signed a contract with NEC Corporation to manufacture and supply 5G Massive MIMO radios to their global customer.

Entered into a multi-faceted strategic partnership with Rakuten Symphony to develop integrated Open RAN solutions and engage in joint go-to-market efforts.

Won commercial purchase orders for wireless products from international mobile network operators after successfully completing field trials.

Initial deployments of 5G RAN products in Private 5G and Railway Safety applications in India.

Growing adoption of 400G/800G coherent optical solutions in carrier of carrier networks, both in India and in international markets.

6.2 R&D and Manufacturing Highlights

The company launched and shipped several world-class products in the wireline and wireless segments. These include:

_ Ojas64, a 64T64R Massive MIMO Radio for 5G/5G-A networks

_ Next-generation coherent DWDM product supporting up to 1.2Tbps per wavelength with C+L band support

_ TJ1600-D3, a hyper-scalable Data Center Interconnectivity (DCI) product scaling to 51.2 Tbps of shelf capacity

Tejas introduced advanced AI-powered engines for universal forecasting, network traffic analytics and agentic customer support; leveraging AI for transforming organizational efficiency and R&D productivity.

Tejas continued to strengthen its IPR repository with 371 global patent grants and 676 global patent filings at the end of FY26.

6.3 Awards & Recognition

Tejass Sat-IoT products won the "Impactful IoT Solution of the Year" at the 2026 ET Telecom Awards, New Delhi.

Tejass TJ1400 UCB product won the most innovative product award at the Telecom Review Leaders Summit at Dubai, UAE.

Tejas was recognized as the "Supply Chain Leader of the Year – Technology and Electronics" at the SCM Middle East Conclave & Awards 2025.

Tejas was a finalist at Network X category "Most Innovative Optical Transport Use Case" for our intelligent Alien Wave (iWave) solution.

Dr. Kumar N. Sivarajan, CTO, was nominated as the Vice Chairman of the Bharat 6G Alliance (B6GA); B6GA is an industry-led body, facilitated by the Government of India, with the objective to enable India to become a leading global supplier of IP, products and solutions in 6G technologies.

Tejas CTO had the honor of representing India and the Bharat 6G Alliance (B6GA) at the Global 6G Industry Alliance Executive Dialogue at Mobile World Congress (MWC), Barcelona in March 2026.

6.4 Revenue Overview						in crore
Revenue	FY24		FY25		FY26
Products	2,149	87%	8,277	93%	919	83%
Services	166	7%	178	2%	178	16%
Revenue from Sales & Service	2,314	94%	8,455	95%	1,097	99%
Other operating revenue	157	6%	468	5%	6	1%
Revenue from Operations	2,471	100%	8,923	100%	1,103	100%

Revenue was lower compared to FY25 due to completion of supply of 100,000 sites for BSNL 4G project in FY25 which led to significantly higher revenue in FY25 as well as delay in award of certain projects which were expected to be executed during the year. Other operating revenue primarily consists of Product Linked Incentive (PLI) in FY24 and FY25 and scrap sales in FY26. Tejas was not eligible for PLI grant for FY26 as its revenue was lower than the specified threshold for eligibility. During FY26, the Company received PLI grant of 278 crore related to previous years.

6.5 Geographical Mix
Revenue	FY24	FY25	FY26
India Govt	36%	3%	22%
India Private	54%	94%	62%
International	10%	3%	16%
Revenue from Sales & Service	100%	100%	100%

The share of International business increased from 10% in FY24 and 3% in FY25 to 16% in FY26. However, domestic business continues to be a large contributor to Tejas revenue. Share of India Private business has increased from 54% in FY24 to 62% in FY26. In FY25, revenue contribution from India Private business was higher driven by deliveries of 100,000 sites for BSNL 4G Project to Tata Consultancy Services Limited.

6.6 Order Book

Our backlog represents the POs received from the customers which remain unexecuted as of March 31, 2026 and consists of both products and services orders. A significant portion of our revenues are derived from a small number of customers. This may lead to quarterly fluctuation and seasonality in our revenues. Order inflows during FY26 has been higher than revenue execution, driven by Bharat Net and higher orders from domestic and international customers. As a result, our order backlog has increased from 1,019 crore by end of FY25 to 1,514 crore by end of FY26. We continue to focus on growing and diversifying our order book through product development and international expansion.

6.7 Financial Highlights

P&L Summary in crore

	FY24		FY25		FY26
Revenue from Operations (A)	2,471	100%	8,923	100%	1,103	100%
Cost of materials consumed (Refer Note 6.8)	1,589	64.3%	6,542	73.3%	767	69.5%
Manufacturing expenses	87	3.5%	188	2.1%	161	14.6%
Service expenses (Refer Note 6.8)	92	3.7%	223	2.5%	214	19.4%
Total Cost of Goods Sold (B)	1,768	71.6%	6,954	77.9%	1,141	103.4%
Gross Profit/(Loss) (C) = (A) - (B)	703	28.4%	1,969	22.1%	(38)	(3.4%)
Operating Expenses:
Research & Development (Gross)	403	16.3%	557	6.2%	609	55.2%
Less: Research & Development Capitalized	(273)	(11.1%)	(305)	(3.4%)	(330)	(29.9%)
Research & Development (Net)	130	5.3%	252	2.8%	279	25.3%
Selling, Distribution & Marketing	157	6.3%	293	3.3%	171	15.5%
General & Administrative	125	5.1%	140	1.6%	133	12.1%
Allowance for expected credit loss	15	0.6%	26	0.3%	61	5.5%
Operating Expenses (Net) (D)	427	17.3%	711	8.0%	644	58.4%
Profit/(Loss) from operations (EBITDA) (E) = (C) - (D)	275	11.1%	1,258	14.1%	(682)	(61.8%)
Depreciation and amortization (F)	182	7.4%	353	4.0%	403	36.5%
Profit/(Loss) before interest and tax (EBIT) (G) = (E) - (F)	93	3.8%	905	10.1%	(1,085)	(98.3%)
1All metrics are for consolidated financials

1All metrics are for consolidated financials

6.8 Total Cost of Goods Sold

Cost of Materials as % of Revenue improved from 73.3% in FY25 to 69.5% in FY26

Cost of Material Consumed and Service Expenses include certain provisions related to inventory and warranty. During the years FY25 and FY26, Tejas made provisions for inventory obsolescence/ write-down primarily on account of contract manufacturing process losses, design changes, and other related matters amounting to 180.59 crore and 170.39 crore respectively. It also made provisions for warranty expenses determined basis potential fault rates, repair requirements, and anticipated warranty claims amounting to 108.09 crore in FY26. Manufacturing expenses marginally decreased due to lower revenue. Service Expenses remained marginally the same.

6.9 Operating Expenses

Operating Expenses have reduced from 711 crore in FY25 to 644 crore in FY26.

Tejas operating expenses mainly consist of employee costs across various functions like R&D, Sales & Marketing, and Corporate (G&A). Other key costs include outward freight, sales and promotion cost, rentals (for offices and warehouses), contractors and consultants, etc. Tejas continues to invest significantly in R&D, which has led to increase in R&D costs. Sales, Distribution & Marketing costs have come down primarily due to lower freight costs driven by lower revenue.

6.10 Profitability

Tejas reported EBITDA loss of 682 crore in FY26 (vs EBITDA profit of 1,258 crore in FY25) and EBIT loss of 1,085 crore (vs EBIT profit of 905 crore in FY25). The reduction was on account of lower revenue and the operating costs reduction not being of similar scale as compared to previous year as a large portion of costs are fixed in nature.

6.11 Balance Sheet Summary in crore

Metric	FY24	FY25	FY26
Inventory	3,738	2,367	2,438
Trade receivables	1,458	4,884	3,258
Payables	1,839	1,184	478
Customer Advances	974	1,491	1,353
Net Working Capital1	3,147	4,524	4,138
Cash and Cash Equivalents	641	827	505
Borrowings	1,744	3,269	4,035
Net Debt (Borrowings – Cash)	1,104	2,442	3,531
Return on Net Worth	2.1%	12.8%	(Neg)

1Net Working Capital = Current Assets (excluding Cash & Cash Equivalents) net of Current Liabilities (excluding Borrowings and lease liabilities)

6.12 Working Capital

Net Working Capital has reduced to 4,138 crore by end of FY26 from 4,524 crore in FY25 primarily due to higher collections in FY26 partially offset by reduction in payables. Advance of 1,335 crore received from TCS as part of the 4G project (currently under current liabilities) will reduce corresponding receivables progressively on completion of the milestones and adjustment of advance against such receivables.

6.13 Borrowings and Net Worth

Borrowings increased in FY26 primarily to meet the working capital requirements for large project execution. As a result, most of the borrowings are of working capital nature. The Company also has 916 crore of long term borrowings mainly to fund its capex requirements.

6.14 Key Financial Ratios

Refer Consolidated Financials Note 32.10 (Additional Information to Financial Statements - Ratios)

7. Looking ahead

7.1. Strengths and Opportunities

Strengths	Opportunities
Converged end-to-end portfolio spanning wireless, optical, packet, satcom and broadcast technologies	Growing large global telecom market
Advanced products engineered for evolving last-mile needs across residential, enterprise and small-business segments.	Rising geopolitical concerns driving demand for ‘Make in India and trusted products
	Ongoing telco investments in 4G/5G mobile and fixed- line infrastructure
Integration of fixed/mobile broadband, transport and routing functions in one chassis	Increasing penetration of gigabit fiber broadband (FTTX) services in urban and rural areas
Large home market in India
Proven experience in building country-wide wireless and wireline networks at scale	Transformation of utility networks from legacy TDM to PTN and IP technologies
Cost-efficient operating model with top-tier India-based R&D talent	Large-scale digital transformation of enterprises, industries and cities
Scalable, asset-light manufacturing with multiple global EMS partners	Convergence of satellite, broadcast and mobile technologies

7.2 Our Vision and Strategy

Our overarching vision is to shape the future of trusted networks and mobility to support emerging need to connect people and things. We are committed to delivering value to our customers globally with intelligent, sustainable and secure networks, with superior execution.

The foundation to deliver the vision is built on three strategic pillars, namely, i) creating a converged end-to-end portfolio, ii) expand global market reach and iii) adopting futuristic technologies.

7.3. Our Core Values

Our core values serve as the guiding framework that shapes and sustains our culture.

Customer Centricity - Creating value for our customers at every touchpoint, ensuring their satisfaction and loyalty. Placing the customer at the heart of everything we offer, understanding their needs and making decisions that delight them.

Excellence - Committed to innovation, continuous improvement and holding ourselves accountable to the highest standards of delivering exceptional results.

Integrity - Be honest, reliable, and consistent in our actions, building credibility with all our business stakeholders and the communities we serve.

Collaboration - Encourage open communication and teamwork across cross-functional teams to achieve organizational goals. Inspire creativity through a strong sense of team spirit.

Respect - Acknowledge the worth and dignity of every individual, regardless of differences. and create an environment of empathy and acceptance

7.4 Business Outlook

In spite of challenges of growing geo-political tensions, the overall global industry outlook in FY27 remains positive. The fundamental drivers of our business such as mobile data usage growth, rising fixed broadband penetration, enterprise digitalization and network transformation are robust. With our converged end-to-end portfolio and well-differentiated wireless and wireline product offerings, our demonstrated ability to execute large projects at scale, we are optimistic that the company will continue to build on its successes in the future years.

7.5 Risks and Concerns

7.5 Risks and Concerns
Risk Type	Risk Description	Mitigation
Business	Limited number of large customers; Aggressive Pricing	Diversify markets; Expand portfolio for adjacent opportunities
Industry	Demand variations; economic downturns	Expand geographical footprint and target markets
Technology	Rapid technological changes and ability to catch up	Actively track evolution and contribute to global standards
Supply Chain	Limited availability of EMS and component suppliers	Diversify EMS and supplier base
Operational	Ability to attract and retain high skilled talent	HR best practices, skill development, quality work and competitive compensation
External
Environment	Subject to credit risks, interest rate risks, forex risks	Risk Management framework to mitigate risks Contesting all outstanding legal proceedings in appropriate forums. Continue to invest in applying for patents and monitor market to prevent unauthorized use of our products or IP
Legal & Regulatory	Legal and tax proceedings customary for a business of our nature. Risk of patent related disputes

8. Human Capital

At Tejas Networks, our people are central to sustaining differentiation as an R&D-driven, innovation led product organization. FY26 will be a year of strengthening people foundations: capability, systems, culture, and governance to support long-term growth in a competitive and evolving telecom landscape.

As of March 31, 2026, the Company had 2,229 employees, with approximately 68% of the workforce engaged in R&D. Our employees bring an average industry experience of over 10 years, reinforcing deep product engineering and domain expertise across the organization.

Strengthening HR Foundations

During FY26, HR executed a step-change across six priority areas: Digitalization, Hiring & Capability, Listening to Employees & Clients, Employee Engagement, Leadership Development, and Governance & Compliance. The focus was on building scalable, standardized, and data-driven people processes while improving employee experience.

A key milestone was the successful implementation of Oracle HCM as a single, integrated platform covering Employee Services, Performance Management, and Recruitment. This has enabled standardized HR processes, improved service delivery, and enhanced data-based decision-making.

In parallel, AI-enabled LinkedIn hiring tools were embedded into the recruitment ecosystem, improving sourcing quality and enabling a more targeted talent attraction strategy, particularly for niche telecom and digital skill sets.

Capability and Leadership Development

Capability building remained a central focus. Through Tejas Academy, learning delivery was scaled across technical, product, leadership, and compliance domains.

Average learning hours per employee increased from 24.37 to 35.34 hours

Training coverage expanded across freshers, continuous learning, internal certification 300+ participants were trained through customer product training programs Structured leadership development programs were initiated for middle and senior management, focused on people leadership, execution capability, and enterprise mindset with an intent to strengthen internal leadership pipeline.

The learning ecosystem was further enhanced through enterprise adoption of LinkedIn Learning, enabling just-in -time and self-directed learning across leadership, digital, and emerging technology areas. Tejas received runner-up recognition in an AI-learning category, reflecting early progress in digital and AI-enabled learning.

Listening, Engagement and Culture

To institutionalize employee feedback, HR launched Tejas ECHO, the annual employee survey, supported by a structured closed-loop action planning and leadership review mechanism. Employee engagement initiatives under the Tejostav platform focused on sports, cultural, and inclusion-led programs. Womens Day and other engagement initiatives were executed through formal organizing structures, reflecting greater maturity and consistency.

9. Sustainability

Our company is committed to its mission of creating value for all its stakeholders and to positively impact the environment and the community at large. As a responsible business, our sustainability strategy is grounded on a robust and transparent ESG (environmental, social and governance)

Annual structure that integrates sustainability into its "Design Digital" approach. We are aware of the environmental impact of our operations and advocate environmental sustainability, energy efficiency and waste reduction in its operations and products/services. Our business operations are geared to minimize negative environmental externalities such as implementing E-waste recycling through authorized agencies. On the social aspects, the company strives to reduce employee turnover rate and 100% of our employees earn above the minimum wage. The company has implemented a robust ESG governance framework and has conducted a comprehensive materiality assessment to evaluate ESG risks and opportunities. The company has a supplier code of conduct in place to uphold ethical business practices. We are certified under ISO14001 and ISO27001 affirming environmental management and information security management practices respectively.

Tejas has also established a comprehensive Occupational Health & Safety (OH&S) management system. It conducts regular safety trainings, evacuation drills, periodic employee health check-ups, as well as continuous monitoring and review of safety incidents. In FY26, the Company successfully completed ISO45001 certification, marking a significant milestone in strengthening its OH&S performance.

10. Corporate Social Responsibility (CSR)

Tejas Networks plays a foundational role in enabling digital access and connectivity across geographies. Alongside its technology mandate, the Company continued to pursue a structured approach to corporate social responsibility during FY26, directing its efforts towards initiatives that support inclusive social outcomes, with education as the central pillar of its CSR strategy. These efforts were designed to create sustained impact within local communities by addressing learning gaps, access barriers, and social vulnerabilities. In FY26, the Company deployed 5.70 crore across 12 NGO partners, collectively benefitingover 34,000 individuals. During (TCA/TCP) the year, Tejas supported education-led interventions spanning early childhood, primary education, adolescent development, inclusive education for children with disabilities, and school retention.

Employee involvement was formalized through a volunteering framework that enabled 140 employees to contribute 744 volunteering hours, strengthening ownership and sustained engagement in community initiatives alongside Tata Group led sustainability programs.

Key initiatives during the year included support to Parivaar (West Bengal) for a residential schooling program offering integrated care and education; Teach for India (Delhi) through continued sponsorship of teaching fellowships; and Rotary Trust (Indiranagar, Karnataka) for restoration of Anganwadi centres. In addition, Tejas deepened its focus on vulnerable groups by supporting the Association of People with Disability (APD) in Karnataka, enabling inclusive, integrated primary education and therapeutic support for 162 children with special needs through the Shraddhanjali Integrated Primary School. The Company also partnered with Voice4Girls to deliver structured life-skills education for approximately 2,400 adolescents across Karnataka and Telangana, addressing dropout risks and empowering adolescents with knowledge on education continuity, employability, rights, and personal agency.

11. Internal control systems and their adequacy

Refer Boards Report – "Internal Control Systems"