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Informist, Jul. 20, 2026

By Arya S. Biju

MUMBAI – After reporting a sequential fall in net profit in the previous quarter, Tata Communications Ltd. is expected to stage a rebound in the June quarter, supported by improved traction in its digital portfolio and core connectivity businesses, as well as the rupee's depreciation against the dollar. However, the telecommunications company's revenue is expected to grow sequentially at its slowest pace in four quarters. 

The company's consolidated net profit for the June quarter is expected to jump over 45% sequentially to INR 3.53 billion, according to the average of estimates from five brokerages. On a year-on-year basis, the bottom line is seen rising 40%.

In the previous quarter, the company's bottom line fell 28% sequentially, mainly due to higher network and transmission expenses. Further, the rupee depreciated 0.3% against the dollar during the June quarter, meaning higher revenue in rupee terms. However, revenue from the company's US operations accounted for only 3% of its total sales in FY26.

Tata Communications' consolidated revenue for the June quarter is expected to rise just over 1% sequentially to INR 66.34 billion, according to the average of estimates. On a year-on-year basis, the company's top line is expected to rise by over 11%, the highest in seven quarters. 

The highest estimate for the company's net profit is INR 3.96 billion from Centrum Broking Ltd., while the highest estimate for net sales is INR 66.94 billion from JM Financial Institutional Securities Pvt. Ltd. The lowest estimates for net profit and sales, at INR 3.22 billion and INR 65.61 billion, respectively, are from Nuvama Wealth Management Ltd. 

Revenue from the company's largest segment, data services, is expected to grow over 1% from a quarter ago and 12% on year, led by digital platforms and services, Kotak Securities Ltd. said in a report. This is, however, lower than the over 6% sequential rise it reported in the previous quarter.  

Despite the impact of a data centre fire incident in its cloud and cybersecurity segment and the postponement of select events in West Asia impacting its media segment, overall sales from the company's digital portfolio segment are expected to grow over 4% sequentially, JM Financial said. Revenue from its core connectivity business is expected to grow 0.5% from a quarter ago, the brokerage said.

Revenue from the company's voice business, which contributed just around 6% to the total sales in the preceding quarter, is expected to decline sequentially, Centrum Broking said. In the March quarter, revenue from the voice business rose 4% sequentially to INR 3.88 billion.  

The company's earnings before interest, taxes, depreciation and amortisation for the June quarter are expected to be INR 13.24 billion, up over 3% from the INR 12.84 billion reported in the trailing quarter. The highest estimate for EBITDA is INR 13.40 billion from Motilal Oswal Financial Services Ltd. and the lowest is INR 13.09 billion from Nuvama Wealth Management. 

The company's EBITDA margin for the quarter is expected to expand 40–50 basis points sequentially to 20.0-20.1%, according to estimates from four brokerages. The expansion in EBITDA margin is likely to be driven by loss reduction in the digital portfolio, Motilal Oswal said. In the March quarter, the company had reported an EBITDA margin of 19.6%. 

Tata Communications will announce its June-quarter earnings on Jul. 22. Market participants will watch the management's commentary on the growth trajectory of digital business, progress in margin expansion, and updates on the divestment of non-core subsidiaries, according to Nuvama Wealth Management. 

Monday, the company's shares ended 0.3% higher at INR 1,822.60 on the National Stock Exchange. The stock has risen 15.5% since the company reported its March-quarter earnings on Apr. 22, but is still down 16% from the all-time high of INR 2,175 reached on Oct. 3, 2024. 

Of the four research reports on the company available with Informist, three have a 'buy' recommendation on the stock, while one has a 'neutral' call. The target prices for the buy recommendations range from INR 1,980 to INR 2,100, up 8-15% from the current price.

The following are the estimates of Apr-Jun earnings of Tata Communications from five brokerages, in descending order of estimates of net profit, in INR billion:

End

US$1 = INR 96.44

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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