Tata Communications’ Net Profit in June Quarter Down by 34.9%
By Ankur Chandra | Published at: Jul 18, 2025 10:41 AM IST
Mumbai, July 18, 2025 – Tata Communications Ltd (NSE: TATACOMM, BSE: 500483) reported its financial results for Q1 FY26. The company posted a consolidated net profit of ₹232.33 crore for the quarter ended June 30, 2025. This marks a 34.9% decline compared to ₹356.77 crore in the same quarter last year. Losses from discontinued operations also impacted the bottom line.
Consolidated Financial Snapshot
| Particulars (₹ crore) | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change |
|---|---|---|---|---|
| Revenue from Operations | 5,959.85 | 5,990.35 | 5,592.32 | +6.6% |
| EBITDA | 1,137.00 | 1,137.00 | 1,137.00 | Flat |
| EBITDA Margin (%) | 19.1% | – | 20.3% | -125 bps |
| PAT (Profit After Tax) | 232.33 | 761.17 | 356.77 | -34.9% |
| PAT Margin (%) | 3.9% | – | 6.4% | -248 bps |
The company’s data services business, which contributes over 85% of operating revenue, rose 9.4% YoY to ₹5,130 crore. This reflects a strong momentum in the digital fabric portfolio. However, the PAT margin narrowed sharply. And this reflects exceptional charges and discontinued business impacts.
Segment Performance – Consolidated
| Segment | Q1 FY26 Revenue (₹ Cr) | Q1 FY25 Revenue (₹ Cr) | YoY Growth |
|---|---|---|---|
| Voice Solutions | 394.54 | 422.69 | -6.7% |
| Data Services | 5,151.72 | 4,703.35 | +9.5% |
| Transformation Services | 224.01 | 308.32 | -27.3% |
| Real Estate | 52.04 | 59.62 | -12.7% |
| Campaign Registry | 189.38 | 145.44 | +30.2% |
Campaign Registry posted the highest YoY growth, while Transformation Services saw a notable revenue decline.
Standalone Highlights
Tata Communications’ standalone net profit for Q1 FY26 stood at ₹136.29 crore, down from ₹341.93 crore in Q1 FY25. Total income rose slightly to ₹1,947.74 crore, while expenses remained broadly stable. The standalone EBITDA margin came in at 8.9% (approx.).
Key Approvals and Strategic Moves
- NCD Issue: The Board approved the issuance of Non-Convertible Debentures (NCDs) up to ₹1,000 crore on a private placement basis. An internal committee has been authorised to finalise the terms and allotment schedule.
- Intra-Group Buyout of SI India: Tata Communications approved a restructuring move to directly acquire 100% equity of its step-down subsidiary, Solutions Infini Technologies (India) Pvt. Ltd., from Kaleyra S.P.A. for ₹123.6 crore. The objective is to simplify the group structure and improve strategic control of enterprise messaging services.
- Policy Update: The Insider Trading Policy was amended under Regulation 8(2) of SEBI (PIT) Regulations, 2015, to update the Tata Code of Conduct for Prevention of Insider Trading.
Management Commentary
A.S. Lakshminarayanan, MD & CEO: “Despite ongoing macroeconomic headwinds and continued pressures across the industry, we delivered a stable performance with healthy order book growth and a modest margin uptick. Our digital fabric is becoming deeply embedded in customer operations.”
Kabir Ahmed Shakir, CFO: “We added multiple million-dollar deals to the order book. Losses in our digital portfolio have narrowed, and we are pleased with the broad-based performance.”
Strategic Outlook
- Digital Fabric: Tata Communications’ strategic pivot towards digital transformation offerings continues to gain traction, especially through its core connectivity and Campaign Registry solutions.
- M&A Rationalisation: The streamlining of SI India’s ownership is expected to enhance operational alignment.
- Balance Sheet: Debt-to-equity ratio rose to 0.39 in Q1 FY26 from 0.31 in Q4 FY25 due to short-term borrowings.
Tata Communications Stock Performance
Tata Communications shares gained 4.53% on July 18, 2025, trading at ₹1,810. Tata Communications shares have dipped 3.23% in the last year, gained 4.89% in the year-to-date, and 6.5% in the previous month.
About Tata Communications
Tata Communications Limited is a part of the Tata Group and is listed on NSE (TATACOMM) and BSE (500483). It operates across more than 190 countries, delivering digital infrastructure, cloud, security, media services, and connectivity solutions. The company serves 300 of the Fortune 500 enterprises.
REF: https://nsearchives.nseindia.com/corporate/TATACOMM_17072025183917_Outcome18226.pdf
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