Tata Communications Q4FY26 Results: Revenue Grows But Profit Takes A Sharp Hit

By Kotak News Desk
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23 Apr 2026 at 11:15 AM IST
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Market News
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Summary

Tata Communications reported a 9% revenue growth in Q4, led by digital services, but profits dropped sharply by 65%. Margins reduced on both a quarterly and an annual basis.

Tata Communications reported a mixed set of numbers for the March quarter, where revenue growth stayed healthy, but profits dropped sharply.

For Q4FY26, the company’s gross revenue came in at ₹6,554 crore, up 9.4% from ₹5,990 crore last year. But the profit after tax (PAT) fell sharply to ₹263 crore, down 65.4% from ₹761 crore a year ago. As a result, PAT margin dropped to 4.0% from 12.7%, a steep fall of 869 basis points.

Although Tata Communications' share price increased by 0.77% (last traded price: ₹1,527) at the close of the day on 22 April 2026 (on the National Stock Exchange), the impact of this announcement will be noticed in the market’s next session.

Other Key Q4 Numbers

The core data revenue rose 11.5% to ₹5,684 crore, showing steady demand for its digital and network services. One of the key growth drivers was its digital portfolio, where revenue jumped 19.2% to ₹2,909 crore.

At the operating level, things looked better. EBITDA (earnings before interest, tax, depreciation and amortisation) rose 14.4% to ₹1,284 crore, and margins improved to 19.6% from 18.7%, a gain of 86 basis points.

Also Read - L&T Technology Services Q4FY26 Results: Profit Rises 24% To ₹347 crore

FY26 Performance Highlights

Looking at the full year, Tata Communications delivered steady revenue growth, but again, profits did not keep pace.

In FY26, gross revenue was ₹24,803 crore, a rise of 7.3% from ₹23,109 crore in FY25. Data revenue, the company's core business, increased 9.4% to ₹21,352 crore, and digital portfolio revenue climbed 16.7% to ₹10,621 crore, indicating a shift towards higher-value services.

Operating performance remained stable. EBITDA increased 5.5% to ₹4,822 crore, but margins slipped slightly to 19.4% from 19.8%, down 33 basis points.

Profitability, however, saw a sharper decline. PAT for the year came in at ₹1,044 crore, down 35.8% from ₹1,625 crore last year. This also pulled down PAT margin to 4.2% from 7.0%.

A final dividend of ₹17.5 per share has been recommended by the company’s board.

Sources:

Company Release

Moneycontrol

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