Tata Communications' Q4 FY 2025-26 Quarterly Results

Result Summary

• Tata Communications Ltd reported a 2.3% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Mar (Q4 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 8.9%.
• Its expenses for the quarter were up by 4.6% QoQ and 8.0% YoY.
• The net profit decreased 28.8% QoQ and decreased 75.1% YoY.
• The earnings per share (EPS) of Tata Communications Ltd stood at 9.22 during Q4 FY 2025-26.

Financial Statments for Q4 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 leading global digital ecosystem enabler that offers a comprehensive range of products and services, including network solutions, cloud and security services, IoT, mobility, and collaboration solutions. The company operates within the telecommunications industry, focusing on providing innovative and scalable solutions to businesses worldwide. Tata Communications is known for its extensive global network and infrastructure, which supports its offerings in various sectors. Recent developments in the company may not be available in the provided data, so specific details on recent strategic moves or expansions are not included in this report.

Revenue

For the fourth quarter of the fiscal year 2026, Tata Communications Ltd reported a total income of ₹6596.73 crores. This represents a quarter-over-quarter (QoQ) increase of 2.3% from ₹6448.26 crores in Q3FY26 and a year-over-year (YoY) increase of 8.9% from ₹6059.15 crores in Q4FY25. The steady growth in total income suggests consistent performance in revenue generation over the periods compared. This growth trajectory highlights the company's ability to increase its top-line figures despite various market conditions.

Profitability

In terms of profitability, Tata Communications Ltd reported a profit before tax of ₹434.09 crores in Q4FY26, which marks a decline of 5.2% QoQ from ₹457.91 crores in Q3FY26 and a significant drop of 52.5% YoY from ₹913.74 crores in Q4FY25. The tax expenses for the quarter amounted to ₹183.27 crores, showing an increase of 81.8% QoQ and 4.2% YoY. Consequently, the profit after tax stood at ₹259.27 crores, translating to a decrease of 28.8% QoQ from ₹364.23 crores in the previous quarter, and a substantial decrease of 75.1% YoY from ₹1040.51 crores in Q4FY25. Earnings per share (EPS) for the quarter was reported at ₹9.22, reflecting a decline of 28.0% QoQ and 74.7% YoY.

Operating Metrics

The total expenses for Tata Communications Ltd in Q4FY26 were ₹6182.90 crores, representing a 4.6% increase QoQ from ₹5913.57 crores in Q3FY26 and an 8.0% increase YoY from ₹5723.20 crores in Q4FY25. The increase in expenses relative to income growth has impacted the company's profitability metrics. Despite the rise in total income, the higher rate of increase in expenses has led to reduced profit margins. The company's operating metrics indicate an environment of rising costs, which has had a tangible impact on net profitability, as observed in the declining profit figures relative to both the previous quarter and the same quarter in the prior fiscal year.