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Informist, Monday, Jan. 19, 2026

By Arya S. Biju

MUMBAI – Robust growth in the company's digital portfolio segment is expected to drive Tata Communications Ltd. to report its highest revenue in at least over 11 years for the December quarter. The company's bottom line is also expected to recover in the reporting quarter, after having fallen sequentially for two straight quarters.  

The telecommunications company's consolidated net profit for the reporting quarter is seen rising around 42% sequentially and over 6% on year to INR 2.89 billion, according to the average of estimates from five brokerages. This comparison excludes the exceptional items reported by the company in the trailing and year-ago quarters. Including the impact of the one-time cost of INR 210 million reported in the September quarter, the company's bottom line for the reporting quarter is seen rising around 58% sequentially.  

The company's revenue for the December quarter is expected to rise around 3% sequentially to INR 62.54 billion, according to the average of estimates. On a year-on-year basis, sales are seen rising 8%, the highest in five quarters.  

The highest estimate for both net profit and revenue of the company is from Motilal Oswal Financial Services Ltd. at INR 3.32 billion and INR 62.84 billion, respectively. The brokerage expects growth in the company's earnings for the quarter to be driven by robust growth in sales from its digital platforms and services segment and favourable foreign exchange movement. On the other hand, JM Financial Institutional Securities Pvt. Ltd. has the lowest estimate of INR 2.60 billion for the company's net profit and of INR 61.97 billion for its net sales as it expects the weakness in the company's core connectivity segment to continue. 

Revenue from the company's largest segment, data services, is expected to grow 2.6-3.5% sequentially, estimates from three brokerages showed. This is expected to be driven primarily by growth in the company's digital portfolio segment. However, continued weakness in the core connectivity services segment due to cable cuts and difficulty in recovering dues from some clients in South Asia is expected to limit the growth in revenue from the data services segment, JM Financial said. Moreover, revenue from the company's voice solutions segment is expected to fall 3% sequentially and over 4% on year, ICICI Securities said in a note. 

The Tata Group-owned company's earnings before interest, taxes, depreciation, and amortisation for the December quarter are expected to rise around 6% sequentially and 5% on year to INR 12.40 billion, according to the average of estimates from five brokerages. The company's EBITDA margin for the reporting quarter is seen expanding 50-100 basis points on quarter to 19.7-20.2%, estimates from four brokerages showed. Lower losses in the digital portfolio segment and a seasonally better quarter for its acquired business, Kaleyra, is expected to boost the company's EBITDA margin for the quarter, Motilal Oswal said in a note. However, EBITDA margin of the company's data business is expected to fall 20 bps on quarter to 18.4% largely due to rising mix of low-margin digital services, ICICI Securities said. 

Tata Communications will announce its December quarter earnings Wednesday. Market participants will watch out for management commentary on growth trajectory in its digital portfolio business and trajectory of margin recovery. Any incremental updates on divestment of non-core subsidiaries will also be monitored by the Street, Nuvama Wealth Management Ltd. said in a note. 

Monday, shares of Tata Communications closed at INR 1,762 on the National Stock Exchange, up slightly. The stock has fallen nearly 10% since the company announced its September-quarter earnings on Oct. 15 and around 19% from the all-time high of INR 2,175 reached on Oct. 03, 2024. 

All three research reports on the company available with Informist have a 'buy' or equivalent recommendation on the stock, with target prices ranging from INR 2,235 to INR 2,390. This indicates a 27% and 37% upside from the stock's closing price Monday, respectively. 

Following are the December quarter earnings estimates for Tata Communications from five brokerage firms in descending order of the estimate of net profit in INR billion: 

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Edited by Deepshikha Bhardwaj

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