Tata Communications names new MD, CEO-designate; Q3 profit up 54%

Tata Communications has appointed Ganesh Lakshminarayanan as MD&CEO-designate, even as the Tata Group firm reported a sharp rise in Dec-quarter profit on expanding margins and a healthy order book

Tata group’s telecom services arm Tata Communications has appointed Ganesh Lakshminarayanan as its managing director and chief executive officer-designate, the company said in a statement on Wednesday, following its third quarter results.

 

Ganesh is the managing director and group vice-president for ServiceNow in India and the South Asian Association for Regional Cooperation (Saarc) region. He will take over as the MD & CEO of Tata Communications after regulatory approvals.

 

Mumbai-based Tata Communications, which offers data connections and cybersecurity to enterprises, said its profit jumped 54.3 per cent year-on-year to ₹365 crore for the quarter ended December 2025, owing to expanding margins and a healthy order book.

 

“This quarter’s performance reflects our disciplined focus on driving data-led growth with expanding margins and a healthy order book. We are gaining momentum across the business, and the capability shift we have invested in is now clearly translating into stronger products and sharper execution for customers,” said A S Lakshminarayanan, current managing director and chief executive officer (CEO) of Tata Communications, who will retire on April 13.

 

The company's revenue from operations for the quarter stood at ₹6,188.97 crore, up 6.7 per cent year-on-year (Y-o-Y) from ₹5,798.07 crore in Q3FY25. Sequentially, revenue increased marginally from ₹6,099.75 crore.

 

The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) improved 4 per cent Y-o-Y to ₹1,228 crore during the quarter from ₹1,181 crore in Q3FY25. Ebitda margins, however, slipped 52 basis points (bps) to 19.8 per cent.

 

It recognised an exceptional cost of ₹60.98 crore linked to the implementation of the new Labour Codes. The cost came from the actuarial revaluation of gratuity and long-term compensated absences following changes to the definition of wages, the company said in a filing to BSE. The codes require employee wages to be at least 50 per cent of cost-to-company, and benefits like provident funds and gratuity to be determined based on wages.