Tata Communications' Q3 FY 2025-26 Quarterly Results

Result Summary

• Tata Communications Ltd reported a 6.0% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Dec (Q3 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 10.7%.
• Its expenses for the quarter were up by 1.8% QoQ and 8.7% YoY.
• The net profit increased 98.8% QoQ and increased 54.3% YoY.
• The earnings per share (EPS) of Tata Communications Ltd stood at 12.8 during Q3 FY 2025-26.

Financial Statments for Q3 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tata Communications Ltd is a global digital ecosystem enabler and part of the Tata Group, one of India's largest conglomerates. The company is a leading provider of a new world of communications, offering a wide range of services including global network services, managed security services, cloud enablement, and unified communications. Tata Communications leverages its advanced solutions to support diverse industries worldwide, ensuring seamless and secure data and communications management for global enterprises. The company has been focusing on expanding its digital infrastructure and enhancing its service portfolio to cater to the growing demand for digital transformation across industries. While specific recent developments are not available in the data provided, Tata Communications continues to be a significant player in the telecommunications and digital services sector.

Revenue

In Q3FY26, Tata Communications Ltd reported a total income of ₹6448.26 crores, reflecting a quarter-over-quarter growth of 6.0% from Q2FY26's ₹6082.51 crores, and a year-over-year increase of 10.7% from Q3FY25's ₹5826.80 crores. This upward trend in total income indicates a consistent increase in the company's revenue generation capabilities over the past year. The company's ability to sustain this growth trajectory highlights its potential to capitalize on its market position and expand its revenue streams effectively.

Profitability

During the third quarter of the fiscal year 2026, Tata Communications Ltd achieved a profit before tax of ₹457.91 crores. This marked a significant quarter-over-quarter increase of 79.8% from the previous quarter's profit of ₹254.64 crores and a year-over-year rise of 23.5% from ₹370.72 crores in Q3FY25. The tax expense for Q3FY26 was ₹100.79 crores, showing a 22.7% increase compared to Q2FY26, but a 20.1% decrease year-over-year. The profit after tax stood at ₹364.23 crores, demonstrating a remarkable growth of 98.8% quarter-over-quarter and 54.3% year-over-year. Earnings per share also reflected this growth pattern, rising to ₹12.80 in Q3FY26 from ₹6.42 in the previous quarter and ₹8.28 in the same quarter last year, representing increases of 99.4% and 54.6%, respectively.

Operating Metrics

The total expenses for Tata Communications Ltd in Q3FY26 amounted to ₹5913.57 crores, which is a 1.8% increase from Q2FY26's ₹5806.87 crores and an 8.7% rise from ₹5441.15 crores in Q3FY25. This modest increase in expenses over the quarters and year-over-year period indicates a controlled growth in operational costs relative to income. The significant growth in profit before tax and profit after tax, despite the increase in expenses, suggests efficient management of operational costs and improved profitability. Earnings per share nearly doubled quarter-over-quarter and increased significantly year-over-year, emphasizing the positive impact of increased profitability on shareholder value.