Tata Communications Q2FY26 Results: Data Business Up 7.3% YoY, PAT Slips 27%

Mumbai, October 15, 2025 – Tata Communications Ltd (NSE: TATACOMM, BSE: 500483) announced a consolidated revenue of ₹6,099.75 crore for Q2FY26, a 6.5% year-on-year increase over ₹5,728 crore in Q2FY25. This growth was primarily driven by the consistent expansion of its portfolio of data and digital solutions. The Data Services division, which accounts for over 85% of the company’s overall revenue, grew 7.4% YoY to ₹5,204 crore, driven by strong demand for enterprise connectivity, cloud, and managed services.

Amidst the announcement, the company’s share closed at ₹1,938, up ₹65.40 or 3.49% from its previous close of ₹1,872.60, indicating investors’ interest in the company’s financial achievement. The share was opened at ₹1,945 and traded between ₹1,999 and ₹1,880.

Profit Margins Under Pressure

Despite solid revenue growth, the company’s profit after tax (PAT) declined 27% YoY to ₹183.21 crore, as compared to ₹251 crore in the same period last year. The PAT margin dropped to 3.0% from 4.4% in Q2FY25, reflecting increased operating costs and higher depreciation. EBITDA stood at ₹1,174 crore, up 3.9% YoY, though the EBITDA margin eased to 19.2% from 19.7%.

Segment Performance And Operational Highlights

Despite Data Services leading the performance, other segments had mixed results. Voice Solutions was down 4.6% YoY, Real Estate decreased by 13.4%, and Transformation Services was flat. Campaign Registry, however, continued its strong momentum, growing 27.8% YoY. The data business EBITDA margin improved 140 basis points sequentially to 18.6%, reflecting improved operational efficiency and disciplined cost management.

Management Commentary

A.S. Lakshminarayanan, Managing Director & CEO, said:

“We have sustained momentum this quarter, led by healthy double-digit growth in our digital portfolio. The period also marked significant wins in government projects, advancing our role in Digital India. Our strategic bets in Voice AI and Cloud Networking are gaining strong traction among customers.”

Kabir Ahmed Shakir, Chief Financial Officer, added:

“Our Q2 results underscore strong operational discipline. Data EBITDA margins improved sequentially, demonstrating the resilience of our core business. We remain confident of sustaining growth while enhancing profitability and capital efficiency in the second half of the year.”

Innovation and Industry Recognition

Throughout the quarter, Tata Communications introduced a Voice AI platform targeted for the BFSI sector. They deepened partnerships with BSNL, AWS, and Cisco to help grow India’s connectivity and cloud ecosystem. The company also received several awards, including the UCaaS Provider of the Year (APAC) and the National CSR & Sustainability Award 2025.

Outlook

Tata Communications is poised to sustain the momentum from its growing digital ecosystem, Voice AI and cloud services. The management expects an improvement in profitability and capital efficiency in the second half of FY26, supported by steady enterprise demand and operational excellence.

REF: https://nsearchives.nseindia.com/corporate/TATACOMM4_15102025134628_18292.pdf

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