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Informist, Monday, Apr. 20, 2026

NEW DELHI – Tata Communications Ltd. is expected to report a decline in its adjusted net profit for the March quarter on a sequential basis despite a slight rise in its overall revenue, according to analysts. This is attributed to the assumption of higher effective tax rate, continued decline in revenues from the voice solutions business, and a rising mix of lower-margin offerings in the digital portfolio, brokerages said. 

If analysts' consensus estimates for the March quarter hold, Tata Communications' bottom line will revert to a decline after logging a near-100% sequential growth in the trailing quarter. In contrast, the top-line growth from a quarter ago would be the fastest in three quarters.

The Tata-group company's consolidated net profit for the reporting quarter is expected to fall nearly 25% on quarter to INR 3.37 billion, excluding exceptional items, according to the average of estimates from six brokerages. Including the impact of the one-time cost of 767.8 million reported for the December quarter, the company's bottom line for the reporting quarter is seen moderating by nearly 9% sequentially. 

On a year-on-year basis, Tata Communications' bottom line for the March quarter is expected to jump over 82%. The net profit estimates for the March quarter range from INR 2.89 billion by Nuvama Wealth Management Ltd. to INR 4.21 billion by Centrum Broking Ltd.

Tata Communications' consolidated revenue is expected to rise almost 3% sequentially and more than 6% on year to INR 63.67 billion, according to the average of estimates. The highest estimate for top line is INR 64.33 billion from Kotak Securities Ltd. and the lowest is INR 62.77 billion from JM Financial Institutional Securities Ltd.

For the December quarter, Tata Communications had reported a consolidated net profit of INR 3.65 billion on revenue of INR 61.89 billion. In the absence of the one-time cost reported for the trailing quarter, its bottom line would have been about INR 4.42 billion, the change in tax notwithstanding. In the year-ago March quarter, the company's consolidated net profit from continued operations added up to INR 1.83 billion on revenue of INR 59.90 billion.

Revenue growth from a quarter ago is expected to be led by the company's data services business in Jan-Mar, brokerages said. ICICI Securities Ltd. estimates a 3.7% on-quarter rise in revenues from data services and a 3% decline in contribution from the voice solutions segment. 

"We estimate net profit at INR 3.4 billion, down 6.2% QoQ on the assumption of higher effective tax rate of 22% (vs. 18.9% in Q3FY26)," the brokerage said.

The company is currently offsetting losses from global operations and making changes to its tax structure, which is resulting in a one-time tax benefit, an analyst from a large domestic brokerage house said.

Tata Communications' earnings before interest, tax, depreciation, and amortisation for the March quarter are expected to grow 4% sequentially and nearly 14% on year to INR 12.78 billion, as per the average of estimates. The highest estimate for EBITDA is INR 13.06 billion from Nuvama Wealth Management and the lowest is INR 12.52 billion from JM Financial Institutional Securities.

Tata Communications will announce its March quarter earnings on Wednesday. Investors await the management's commentary on demand and deal pipeline, growth in the digital business, any incremental updates on divestment of non-core subsidiaries, and the overall outlook for 2026-27 (Apr-Mar). 

Monday, shares of Tata Communications ended 0.4% lower at INR 1,515.70 on the National Stock Exchange. The stock is down over 6% since the company reported its December quarter earnings. It has declined more than 24% from its 52-week high of INR 2,004, recorded on Oct. 16.

Of the four research reports on the company available with Informist, three have a 'buy' recommendation on the stock while one has a 'hold' call. The average target price of the 'buy' recommendations is INR 2,200, 45% higher than the current market price.

Following are the Jan-Mar earnings estimates, in INR billion, for Tata Communications from six brokerages, in descending order of net profit estimates:

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Edited by Deepshikha Bhardwaj

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