Tata Communications Q2 result: Profit drops 19% at ₹183 cr, revenue up 6.5%

Tata Communications' revenue growth was driven by over 7 per cent growth in data services income, the company said in a BSE filing

Tata group's telecom services arm, Tata Communications, on Wednesday reported a 19 per cent year-on-year (Y-o-Y) decline in its consolidated net profit at ₹183.21 crore for the second quarter of the financial year 2025-26 (Q2 FY26). The company reported a net profit of ₹227.27 crore in the same quarter last year. Sequentially, profit was down 3.6 per cent from ₹190.14 crore. 

However, Tata Communications' revenue from operations for the quarter was up 6.5 per cent at ₹6,099.75 crore, from ₹5,727.85 crore in Q2 FY25. On a quarter-on-quarter (Q-o-Q) basis, revenue increased by 2.3 per cent from ₹5,959.85 crore. The revenue growth was driven by over 7 per cent growth in data services income, the company said in a BSE filing.

 

“We have sustained momentum this quarter, led by healthy double-digit growth in our digital portfolio. The period has also marked some significant wins in government projects, advancing our role in Digital India. Our newly launched products in our strategic bets, including Voice artificial intelligence (AI) and cloud networking, are generating significant interest and adoption among our customers, reflecting the strength and relevance of our solutions," said AS Lakshminarayanan, managing director and chief executive officer (CEO) at Tata Communications.

 

The company reported earnings before interest, taxes, depreciation and amortization (Ebitda) of ₹1,174, up 3.9 per cent Y-o-Y, with a 19.2 per cent margin.

 

“Our Q2 results demonstrate strong operational discipline, with Data Ebitda margins improving sequentially and reflecting the resilience of our core business. As we enter the second half of the fiscal, we expect our strategic bets to further enhance profitability and margin strength. We remain confident in our ability to sustain growth, optimise capital efficiency and deliver long-term value for all stakeholders," said Kabir Ahmed Shakir, chief financial officer at Tata Communications.