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Informist, Wednesday, Jul. 22, 2026

 

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--Tata Communications Apr-Jun consol net profit INR 1.34 bln 
--Tata Communications Apr-Jun consol revenue INR 65.83 bln 
--Analysts saw Tata Comm Apr-Jun consol net profit at INR 3.53 bln 
--Analysts saw Tata Comm Apr-Jun consol revenue INR 66.34 bln 
--Tata Comm Apr-Jun consol net profit INR 1.34 bln vs INR 2.63 bln qtr ago 
--Tata Comm Apr-Jun consol revenue INR 65.83 bln vs INR 65.54 bln qtr ago 
--Tata Comm Apr-Jun net profit includes one-time cost INR 1.06 bln 
--Tata Comm Apr-Jun data svcs sales INR 57.04 bln vs INR 57.05 bln qtr ago 
--Tata Comm Apr-Jun voice solutions sales INR 3.82 bln vs INR 3.88 bln qtr ago 
--Tata Comm Q1 transformation svcs sales INR 1.95 bln vs INR 2.26 bln qtr ago 
--Tata Comm Q1 campaign registry sales INR 2.59 bln vs INR 2.35 bln qtr ago 
--Tata Comm Apr-Jun consol EBITDA INR 12.30 bln vs INR 12.84 bln qtr ago 
--Tata Comm Apr-Jun consol EBITDA margin 18.7% vs 19.6% qtr ago 
--Tata Comm Apr-Jun normalised consol EBITDA margin 19.4% 

 

By Arya S. Biju

 

MUMBAI – A decline in revenue from major segments coupled with higher network and transmission costs dragged down Tata Communications Ltd.'s bottom line for the June quarter. The company's net profit for the quarter was also impacted by a one-time cost of INR 1.06 billion. Even if the one-time cost is removed, the company's bottom line would still have fallen on a sequential basis.       

 

The communications technology company's consolidated net profit for the reporting quarter nearly halved sequentially to INR 1.34 billion from INR 2.63 billion. This was sharply below the INR 3.53 billion net profit estimated by the Street. With this, the company's bottom line fell sequentially for the second straight quarter. 

 

The company had an exceptional cost of INR 1.06 billion during the reporting quarter. This included INR 447.8 million related to staff cost optimisation, INR 301 million recognised as provision for losses arising from a fire incident at a co-located third-party data centre premise, and provision of INR 500 million made towards certain contractual obligations. If one were to add back the one-time cost, the company's consolidated net profit for the quarter would have been INR 2.41 billion. This is still down nearly 9% on a sequential basis.   

 

The company's consolidated revenue from operations for the quarter rose just 0.4% on a sequential basis to INR 65.83 billion. This was also below the INR 66.34 billion estimated by the Street. Its total income declined slightly to INR 65.96 billion from INR 65.97 billion reported in the trailing quarter. Its other income for the quarter slumped nearly 70% on quarter to INR 129 million.  

 

On a year-on-year basis, the company's bottom line declined 29% while its top line grew over 10%. 

 

The company's total expenses for the June quarter grew 1.5% sequentially to INR 62.78 billion, way faster than the 0.4% rise in its total sales. This was mainly driven by a 2% sequential rise in its largest cost, network and transmission expenses, to INR 31.44 billion. Its other expenses and finance costs for the quarter also grew 2% sequentially to INR 9.69 billion and INR 1.86 billion, respectively. Its depreciation and amortisation expenses rose over 1% to INR 7.39 billion. The company's employee benefits expenses, on other hand, declined slightly on quarter to INR 12.40 billion.  

 

Revenue from the company's largest segment, data services, declined slightly on quarter to INR 57.04 billion. Revenue from its voice business fell over 1% sequentially to INR 3.82 billion. Its transformation services sales declined nearly 14% on quarter to INR 1.95 billion while its campaign registry sales for the quarter grew nearly 10% on quarter to INR 2.59 billion.  

 

The company's consolidated earnings before interest, tax, depresiation and amortisation for the quarter grew over 8% on year to INR 12.30 billion. Meanwhile, its consolidated EBITDA margin declined 39 basis points on year to 18.7%. Its normalised EBITDA and EBITDA margin for the quarter was INR 12.81 bilion and 19.4%, respectively.

 

 

Post the earnings announcement, shares of Tata Communications fell nearly 8% to INR 1,680, their lowest level in over two months. Later, the stock came slightly off lows and traded 3.8% lower at INR 1,749.30 at 1501 IST.  End
    

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

 

Edited by Akul Nishant Akhoury

 

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