Top network equipment and solutions providers are optimistic of higher order inflows in FY26 led by demand for optic fibre cables, data centres and expanding 5G coverage. They are also banking on the government’s BharatNet project to be a growth driver.
Sterlite Technologies (STL) and Tejas Networks saw a muted FY25 but there are early signs of orders picking up.
This month, STL won a ₹2,631-crore order from BSNL for the middle mile network of BharatNet in the J&K and Ladakh telecom circles, while in May, Tejas Networks got an order worth ₹1,525 crore from TCS for Radio Access Network and other equipment in connection with BSNL’s 4G mobile network project.
BharatNet is seen as “the next big kicker.”
Ankit Agarwal, Managing Director of STL, said more states are likely to launch their own BharatNet phase III. “I think there will be multiple opportunities which ultimately will take the fibre to every village in India.”
It is also strengthening its data centre portfolio to meet the demand from hyperscalers, colocation players, enterprises and telecom service providers. It estimated data centre and optical fibre demand to rise over 26 per cent in five years.
In case of 5G, Agarwal said Bharti Airtel and Reliance Jio are driving growth via fixed wireless and bundle broadband. With operators looking at end-to-end fibre network for their requirements, a reasonable amount of fibre would be deployed by telcos.
In FY25 STL’s order bookings fell 30 per cent annually to ₹451 crore due to lower long term orders.
Tejas Networks’ order backlog fell 87 per cent to ₹1,019 crore in FY25.
“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. We saw strong order inflows during FY24, which got executed during the year FY25,” said Tejas Networks in an investor call, adding that several new customers and application wins in both private and government sectors are set to expand in FY26.
On execution timelines in FY26, the company said, “The larger orders will be executed; there will be some overflow into FY27 also, but a significant part of those opportunities we expect to get completed in FY26.”
HFCL had a strong FY25 with a 30 per cent rise in order bookings to ₹9,967 crore, led by network services from the government. It expects revenue from fibre optic cable and associated business to double in FY26.
It has already got contracts worth ₹157 crore to supply Optical Fibre Cables for the BharatNet project, a ₹173.72-crore order for setting up 5G Outdoor Customer Premise Equipment (CPE) and others.
“India’s telecom sector, backed by investments and policy support, is set to drive a $1 trillion digital economy by 2029–30. ARPU is projected to grow 10–12 per cent in FY26, led by rising usage of 5G and rural data usage. These trends are generating sustained demand for fiber, telecom gear and next-gen connectivity solutions where HFCL is strongly poised to lead,” said Mahendra Nahata, Promoter and Managing Director.
Kranthi Bathini, Director, Equity Strategy at WealthMills Securities, said he was cautiously optimistic about the performance of the companies’ stocks, depending on order inflows and the pace of execution.
“We need to see how these orders are getting executed and the clarity by the companies with respect to order book and the execution, especially for Sterlite Techbologies. I’m bullish for a longer term in case of companies like Tejas Networks, which is under the Tata management. The stock is in a consolidation phase, but the long-term prospects look warm for these companies,” said Bathini.
Bathini said the rise of order book gives renewed interest for this stock. STL rallied 40-50 per cent in the last month post the BSNL order. He expected the data centre business to also positively impact the companies considering the optic fibre requirements therein.