Tata Communications Q1 Net Profit Drops 29% on Higher Exceptional Loss 

The company’s revenue rose 10.5% to ₹6,582.8 crore, while EBITDA increased 8.2% to ₹1,230.2 crore during the quarter. 

Tata Communications reported a 29.35% year-on-year decline in consolidated net profit to ₹134 crore for the first quarter of fiscal 2026–27 (Q1 FY27), compared with ₹189 crore in the same quarter a year earlier.

The decline in profit was largely impacted by a higher exceptional loss during the quarter. The company reported an exceptional loss of ₹106 crore in Q1 FY27, compared with ₹20 crore in the year-ago period.

Revenue from operations increased 10.5% year-on-year to ₹6,582.8 crore during the quarter, compared with ₹5,959 crore in Q1 FY26.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8.2% to ₹1,230.2 crore from ₹1,136.8 crore a year earlier. However, the EBITDA margin declined to 18.7% from 19% in the corresponding period of the previous fiscal.

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Ganesh Lakshminarayanan, MD and CEO of Tata Communications, said the company had started the financial year with strong growth across its core and digital portfolios. He added that normalised EBITDA performance remained strong and the company was on track to deliver double-digit EBITDA growth during the year.

The company is focusing on accelerating growth in its network fabric business, expanding platform revenues, improving profitability in its digital business and strengthening the conversion of EBITDA into cash, Lakshminarayanan said.

Tata Communications said its growth strategy will focus on expanding its network infrastructure and digital platforms while improving operational efficiency and cash generation. The company sees significant opportunities ahead as demand for communications technology and digital services continues to expand.

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Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

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