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Informist, Wednesday, Oct. 15, 2025

 

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--Tata Comm Jul-Sept consol net profit INR 1.83 bln 
--Analysts saw Tata Comm Jul-Sept consol net profit at INR 3.09 bln 
--Tata Comm Jul-Sept consol revenue INR 61 bln 
--Analysts saw Tata Comm Jul-Sept consol revenue at INR 60.98 bln 
--Tata Comm Jul-Sept consol PAT INR 1.83 bln vs INR 1.90 bln qtr ago 
--Tata Comm Jul-Sept consol revenue INR 61 bln vs INR 59.60 bln qtr ago 
--Tata Comm Apr-Sept consol PAT INR 3.73 bln vs INR 5.60 bln year ago 
--Tata Comm Apr-Sept consol revenue INR 120.60 bln vs INR 113.20 bln year ago 
--Tata Comm Q2 data svcs sales INR 52.04 bln vs INR 51.52 bln qtr ago 
--Tata Comm Q2 voice solutions sales INR 4.06 bln vs INR 3.95 bln qtr ago 
--Tata Comm Q2 transformation svc sales INR 2.87 bln vs INR 2.24 bln qtr ago 
--Tata Comm Q2 campaign registry sales INR 2.03 bln vs INR 1.89 bln qtr ago 
--Tata Comm Jul-Sept consol EBITDA INR 11.74 bln vs INR 11.29 bln year ago 
--Tata Comm Jul-Sept consol EBITDA margin 19.2% vs 19.7% year ago 
--Tata Comm: Saw sustained growth in Q2; digital ops grew in double digit

 

By Arya S. Biju

 

MUMBAI – Tata Communications Ltd. reported a low-single-digit sequential fall in its bottom line for the September quarter, as its expenses grew faster than its revenue. The company's top line for the quarter rose a little over 2% on a sequential basis, but its expenses rose 2.5% on quarter led by higher employee benefits expense and other expenses.
 

The telecommunications company's consolidated net profit for the September quarter fell nearly 4% on quarter and 19% on year to INR 1.83 billion. This was way below the INR 3.09 billion net profit estimated by the Street. The company's consolidated revenue for the quarter rose over 2% on quarter and over 6% on year to INR 61.00 billion, in line with analysts' expectation of INR 60.98 billion.

 

The telecommunications company's total expenses for the quarter rose 2.5% on quarter and nearly 7% on year to INR 58.07 billion. This was mainly on account of a sequential rise in its employee benefits expense and other expenses which together accounted for over 38% of the company's total costs. The employee benefit expense for the reporting quarter rose over 4% on quarter to INR 12.70 billion. The company's other expenses rose over 7% on quarter to INR 9.41 billion. On the other hand, the company's network and transmission expenses, which accounted for about 47% of its total costs, fell marginally to INR 27.15 billion from INR 27.29 billion in the trailing quarter. 

 

The decline in bottom line for the reporting quarter was despite the company reporting its highest revenue in at least 11 years. The September quarter top line of Tata Communications was supported by strong growth in sales from its largest segment, data services, which includes its digital portfolio and core connectivity business. Revenue from the segment rose 1% on quarter and over 7% on year to INR 52.04 billion. Revenue from its digital portfolio business also rose 1% on quarter to INR 25.42 billion, up nearly 15% on year. Revenue from its core connectivity business rose nearly 1% both sequentially and annually to INR 26.37 billion.

 

"We have sustained momentum this quarter, led by healthy double-digit growth in our digital portfolio," A.S. Lakshminarayanan, managing director and chief executive officer of the company, was quoted as saying in a post-earnings press release. "The period has also marked some significant wins in government projects, advancing our role in Digital India."

 

Revenue from the company's voice solutions business for the reporting quarter rose nearly 3% on quarter to INR 4.06 billion. Revenue from the transformation business jumped 28% on quarter to INR 2.87 billion. Revenue from the company's campaign registry business grew 7% on quarter to INR 2.03 billion.

 

The company's consolidated earnings before interest, taxes, depreciation, and amortisation for the September quarter rose over 3% on quarter and nearly 4% on year to INR 11.74 billion. This was, however, lower than the INR 12.18 billion estimated by the Street. The company reported an EBITDA margin of 19.2% for the September quarter, up from 19.1% in the trailing quarter but lower than the 19.7% reported a year ago.

For the first six months of the financial year 2025-26 (Apr-Mar), the company reported a consolidated net profit of INR 3.73 billion, down over 33% on year. Its revenue for the period rose nearly 7% on year to INR 120.60 billion. "As we enter the second half of the fiscal, we expect our strategic bets to further enhance profitability and margin strength," Chief Financial Officer Kabir Ahmed Shakir said, per the release. "We remain confident in our ability to sustain growth, optimise capital efficiency, and deliver long-term value for all stakeholders."

 

Shares of Tata Communications closed over 4% higher Wednesday at INR 1,955.10 on the National Stock Exchange. The company detailed its financial results during market hours.  End

 

Edited by Rajeev Pai

 

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