Synopsis:- Shares rose up to 3% despite a 75% profit drop, as revenue grew 15% YoY to ₹6,554 crore. Growth was driven by strong data and digital segments, with digital revenue up 19.2%, while exceptional items impacted headline profitability, masking underlying stability.
The shares of the prominent Indian telecommunications company gained up to 3 percent in today’s trading session despite the company’s net profit plummeted 75 percent in Q4FY26.
With a market capitalization of Rs 43,434.00 crore, the shares of Tata Communications Ltd were trading at Rs 1,534.95 per share, increasing around 1 percent as compared to the previous closing price of Rs 1,524.55 apiece.
Q4FY26 Highlights
Tata Communications Ltd reported steady growth, with revenue rising 9% YoY from Rs 5,990 crore to Rs 6,554 crore in Q4FY26, while also increasing 6% QoQ from Rs 6,189 crore. However, reported profit stood at Rs 259 crore versus Rs 1,041 crore last year, a 75% drop, which included a Rs 577.79 crore exceptional item, indicating underlying performance is more stable than headline numbers suggest.
Moreover, on a normalized basis, profitability improved despite a QoQ decline from Rs 364 crore to Rs 259 crore. For FY26, revenue grew 7% from Rs 23,109 crore to Rs 24,803 crore. Meanwhile, net profit stood at Rs 997 crore versus Rs 1,837 crore earlier, which included a Rs 691.47 crore exceptional gain, highlighting operational resilience despite adjustments.
Tata Communications reported steady growth in its core segments for March 2026 compared to March 2025. Data Services revenue increased from Rs 5,121 crore to Rs 5,705 crore, driving overall performance, while Digital Transformation Services declined to Rs 226 crore from Rs 318 crore. Meanwhile, Voice Solutions remained stable at Rs 387 crore, reflecting a balanced but shifting revenue mix.
Furthermore, other segments showed moderate improvement, with Real Estate rising to Rs 51 crore and Campaign Registry increasing to Rs 235 crore. At the same time, inter-segment revenue was at a loss of Rs 50 crore. Consequently, the company’s growth was primarily supported by Data Services, while selective declines in transformation services indicate evolving demand dynamics.
The company’s digital portfolio continued to drive growth, with digital revenues rising 19.2% year-on-year and crossing 50% of the overall data portfolio for the first time. Data revenue grew 11.5% year-on-year, with the segment crossing the Rs 21,000 crore mark on a full-year basis. Additionally, the Board of Directors recommended a final dividend of ₹17.50 per share [175%] (face value of ₹10/- each) for the financial year ended March 31, 2026.
Commenting on the performance, Ganesh Lakshminarayanan, MD and CEO-designate, said the quarter saw strong deal wins across network transformation, multi-cloud connectivity, and enterprise solutions, reflecting rising demand for next-generation digital infrastructure.
Tata Communications is a leading global digital infrastructure and network services provider, enabling enterprises to connect, collaborate, and transform digitally. Part of the Tata Group, it offers solutions in cloud, data, and connectivity across 190+ countries, supporting businesses with secure, scalable, and innovative communication technologies in an increasingly digital world.
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