Tata Communications Share Price Rallies After Q2 FY27 Results As Profit Growth And Digital Revenue Strengthen
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An 86.3% year-on-year surge in net profit marked Tata Communications’ Q2 FY27 performance. Higher operating earnings helped, as did improved margins.
There was progress elsewhere, too. Digital platform revenue grew, and losses in the digital business narrowed from the previous quarter. Shares rose sharply following the results. Management also flagged opportunities in artificial intelligence and data centre connectivity.
Tata Communications reported consolidated net profit of ₹341 crore for the September quarter, compared with ₹183 crore in the corresponding period last year. The increase reflected stronger operating performance and improved profitability.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to ₹1,422 crore from ₹1,174 crore a year earlier. The company said it recorded its highest-ever EBITDA in the quarter, alongside its fastest EBITDA growth.
Gross revenue increased year-on-year, with digital platforms and data services contributing to the expansion. The digital business also showed signs of improvement, although the segment remained loss-making.
Tata Communications Share Price Jumps After Q2 Results
Tata Communications shares climbed as much as 12% on Thursday after the earnings announcement. The stock closed at ₹1,763.70, up 6.32% on the National Stock Exchange (NSE).
Tata Communications Q2 FY27 Results: Key Numbers
Particulars | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
Net profit | ₹341 crore | ₹183 crore | +86.2% |
EBITDA | ₹1,422 crore | ₹1,174 crore | +21.2% |
EBITDA margin | 21.3% | 19.2% | +2.1 percentage points |
PAT margin | 5.1% | 3.0% | +2.1 percentage points |
Gross revenue | — | — | +9.6% |
Digital platform revenue | — | — | +18.6% |
Data revenue | — | — | +12.2% |
AI And Data Centre Connectivity Remain Key Growth Areas
Ganesh Lakshminarayanan, managing director and chief executive officer of Tata Communications, said the results reflected improved profitability across the business and a sustained focus on operational discipline.
He also pointed to growing interest in the company's Unified AI Stack, which is designed to help businesses turn enterprise intelligence into practical applications.
Demand for data centre-to-data centre connectivity is another opportunity. The company expects its network infrastructure and continued investments to support its position in this market.
Digital Business Losses Narrow
Tata Communications reported that losses in its digital business halved compared with the previous quarter. The segment's margin stood at -3.6%, indicating that it had yet to reach profitability.
The company's performance in the coming quarters will depend on maintaining operating momentum and converting demand for digital services, AI solutions and connectivity into sustainable earnings.
According to exchange data, promoters held a 58.86% stake in the company.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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