Tata Communications reported steady operational growth while profitability declined on a high base effect and sequential pressure.
Tata Communications reported a sharp decline in net profit for the March quarter even as revenue continued to grow steadily. The company posted a net profit of ₹2.59 billion for the quarter, marking a 75% year-on-year fall from ₹10.40 billion recorded in the same period last year.
The decline in earnings was largely driven by a high base effect. The corresponding quarter last year had included exceptional gains, particularly a one-time benefit linked to a subsidiary transaction. With no comparable extraordinary income this quarter, profitability returned to normalised levels.
On a sequential basis, net profit fell 29% from ₹3.64 billion reported in the December quarter, indicating some pressure on operating performance. Profit before tax stood at ₹4.34 billion, compared with ₹9.14 billion a year earlier.
Revenue performance remained stable. Revenue from operations rose 9% year-on-year to ₹65.54 billion, up from ₹59.90 billion in the year-ago quarter, supported by higher demand for network and transmission services. Total income increased to ₹65.97 billion, compared with ₹60.59 billion in the corresponding period last year.
For the full financial year FY26, Tata Communications reported revenue from operations of ₹248.03 billion, representing a 7% annual increase. Net profit for the year came in at ₹9.97 billion, down from ₹18.37 billion in FY25, mainly due to exceptional gains recorded in the previous year.
The board has recommended a final dividend of ₹17.5 per share (175%) for FY26, subject to shareholder approval at the upcoming annual general meeting.
