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Informist, Wednesday, Jan. 21, 2026

 

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--Tata Comm Oct-Dec consol net profit INR 3.65 bln 
--Analysts saw Tata Comm Oct-Dec consol net profit at INR 2.89 bln
--Tata Comm Oct-Dec consol revenue INR 61.89 bln 
--Analysts saw Tata Comm Oct-Dec consol revenue at INR 62.54 bln
--Tata Comm Oct-Dec consol net profit INR 3.65 bln vs INR 1.83 bln qtr ago  
--Tata Comm Oct-Dec consol revenue INR 61.89 bln vs INR 61.00 bln qtr ago 
--Tata Comm Oct-Dec consol EBITDA INR 12.28 bln vs INR 11.74 bln qtr ago 
--Tata Comm Oct-Dec consol EBITDA margin 19.8% vs 19.2% qtr ago 
--Tata Comm Oct-Dec data svcs sales INR 53.80 bln vs INR 52.04 bln qtr ago 
--Tata Comm Q3 voice solutions sales INR 3.73 bln vs INR 4.06 bln qtr ago 

 

By Adhithya Aji

 

MUMBAI – Tata Communications Ltd. reported robust gain in its consolidated net profit for the December quarter, driven by a sharp rise in other income, which had been negative in the previous quarter. The company's bottom line rose after falling for two quarters to beat analysts' estimate on net profit. The company's revenue, however, fell short of the consensus view.

 

The telecommunications company's consolidated net profit for the December quarter nearly doubled sequentially to INR 3.65 billion, comfortably beating analysts' consensus bottom-line view of INR 2.89 billion. The net profit would have been even higher but for a one-time cost of INR 767.8 million. Of this, INR 609.8 million pertains to the statutory impact of the new labour codes, which came into effect in November. The remaining INR 158 million relates to staff cost optimisation.

 

Excluding the one-time cost, the company's net profit would have been INR 4.42 billion, more than double the net profit of INR 2.04 billion it would have reported for the September quarter if one-time costs during that period were excluded.

 

The revenue of the Tata Group company rose 1.5% on quarter to INR 61.89 billion. The top line was below the Street's view of INR 62.54 billion. Sales were up nearly 7% on year.

 

The company's total income rose 6% sequentially to INR 64.48 billion. Its other income for the quarter was INR 2.59 billion, against an outgo of INR 172.40 million for the September quarter. The company's total expenditure rose nearly 2% on quarter to INR 59.14 billion. The network and transmission expenses rose over 4% sequentially to INR 28.36 billion. The employee benefit expense was INR 12.12 billion, down nearly 5% on quarter but up nearly 8% on year.
 

The data services revenue of the company rose 3.4% on quarter to INR 53.80 billion. Revenue from the company's digital portfolio grew 15% on year and revenue from data grew 9.3% on year, according to a press release. The revenue from the data services segment contributed around 87% to the company's top line for the December quarter. The revenue from the voice solutions segment fell 8% sequentially to INR 3.73 billion. Transformation services revenue stood at INR 2.23 billion, up over 22% on quarter.

 

The company reported a consolidated earnings before interest, tax, depreciation, and amortisation of INR 12.28 billion, up nearly 5% sequentially and 4% on year. The EBITDA for the December quarter was marginally lower than analysts' estimate of INR 12.40 billion. The company's EBITDA margin was 19.8%, an increase of 60 basis points from 19.2% reported in the trailing quarter.

 

"We are gaining momentum across the business and the capability shift we have invested in is now clearly translating into stronger products and sharper execution for customers. With multiple launches ahead, we are well positioned to build sustainably and accelerate the next phase of growth," A.S. Lakshminarayanan, managing director and chief executive officer of the company, said in the press release.

 

For the nine months ended Dec. 31, the company reported a consolidated net profit of INR 7.38 billion, down over 7% on year. Revenue for the period was INR 182.49 billion, up nearly 7% on year. 

 

Tata Communications released its December quarter earnings during market hours Wednesday. Shares of the company ended nearly 6% lower at INR 1,617.80 on the National Stock Exchange.  End 

 

Edited by Rajeev Pai

 

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