Earnings Review
Tata Comm posts highest QoQ growth in sales in 9 qtrs in Q4
This story was originally published at 17:55 IST on 22 April 2026
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--Tata Comm Jan-Mar consol net profit INR 2.63 bln
--Analysts saw Tata Comm Jan-Mar consol net profit at INR 3.34 bln
--Tata Comm Jan-Mar consol revenue INR 65.54 bln
--Analysts saw Tata Comm Jan-Mar consol revenue at INR 63.67 bln
--Tata Comm Jan-Mar consol net profit INR 2.63 bln vs INR 3.65 bln qtr ago
--Tata Comm Jan-Mar consol revenue INR 65.54 bln vs INR 61.89 bln qtr ago
--Tata Comm FY26 consol net profit INR 10.02 bln vs INR 18.37 bln year ago
--Tata Comm to pay INR 17.50 per share final dividend
--Tata Comm FY26 consol revenue INR 248.03 bln vs INR 231.09 bln year ago
--Tata Comm Jan-Mar data svcs sales INR 57.05 bln vs INR 53.80 bln qtr ago
--Tata Comm Jan-Mar voice solutions sales INR 3.88 bln vs INR 3.73 bln qtr ago
--Tata Comm Q4 transformation svc sales INR 2.26 bln vs INR 2.23 bln qtr ago
--Tata Comm Jan-Mar consol EBITDA INR 12.84 bln vs INR 11.22 bln year ago
--Tata Comm Q4 campaign registry sales INR 2.35 bln vs INR 2.17 bln qtr ago
--Tata Comm Jan-Mar consol EBITDA margin 19.6% vs 18.7% year ago
By Gopika Balasubramanium
MUMBAI – Tata Communications Ltd. reported the highest sequential growth in top line in nine quarters in Jan-Mar on the back of robust growth in its data services, voice solutions, and campaign registry segments. However, the company's bottom line fell from a quarter ago as expenses grew at a pace similar to revenue, driven by a surge in network and transmission costs.
The telecommunications company's consolidated net profit for the March quarter plunged 28% on quarter and 75% on year to INR 2.63 billion. This was way below the INR 3.34 billion net profit projected by the Street. The sharp year-on-year decline in net profit was due to a high base effect as the year-ago profit included a one-time gain of INR 5.78 billion.
The company's consolidated revenue for the quarter rose nearly 6% on quarter and over 9% on year to INR 65.54 billion, well above analysts' expectations of INR 63.67 billion. The on-year growth in the company's revenue was the highest in six quarters. The decline in net profit in the March quarter was despite the company reporting the highest sales growth in nine quarters on a sequential basis.
The telecommunications company's total expenses for the quarter rose nearly 5% on quarter and 8% on year to INR 61.83 billion. The increase was mainly due to a rise in its network and transmission expense, which accounted for over 50% of the company's total costs. The network and transmission expense for the reporting quarter rose nearly 9% on quarter and 14% on year to INR 30.81 billion. The company's employee costs rose a little over 2% on quarter to INR 12.40 billion. The depreciation and amortisation expenses fell nearly 3% on quarter to INR 7.31 billion.
Revenue from the data segment rose over 11% on year to INR 56.84 billion. Revenue from the company's voice solutions business for the reporting quarter rose nearly 4% sequentially to INR 3.88 billion. Revenue from the transformation services business rose 1% on quarter to INR 2.26 billion. Revenue from the company's campaign registry business grew 8% on quarter to INR 2.35 billion.
The company's consolidated earnings before interest, taxes, depreciation, and amortisation for the March quarter rose over 14.4% on year to INR 12.84 billion. This was only a tad higher than the INR 12.78 billion estimated by the Street. The company reported an EBITDA margin of 19.6% for the reporting quarter, up from 18.7% reported a year ago.
For 2025-26 (Apr-Mar), the company reported a consolidated net profit of INR 10.02 billion, down nearly 46% on year. Its revenue for the year rose over 7% to INR 248.03 billion.
On Wednesday, Shares of Tata Communications closed 0.8% higher at INR 1,525 on the National Stock Exchange. The company detailed its financial results after market hours. End
Edited by Saji George Titus
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