Tata Communications Q3 result: Profit jumps 55% to ₹365 cr, revenue up 6.7%

Tata Communications' Q3FY26 profit jumped 54.8% to ₹365 crore on higher margins and a strong order book. The quarter also included a ₹61 crore exceptional charge linked to new Labour Codes

Tata Communications on Wednesday reported a 54.8 per cent jump in its consolidated net profit to ₹365.28 crore in the third quarter of the financial year 2025-26 (Q3FY26). During the same period last year, profit stood at ₹235.96 crore. On a sequential basis, profit almost doubled from ₹183.06 crore.

 

The Tata Group's telecom arm attributed the spike in profit to expanding margins and a healthy order book.

 

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.

 

Tata Communications recognised an exceptional cost of ₹60.98 crore linked to the implementation of the new Labour Codes. The charge reflects an actuarial revaluation of gratuity and long-term compensated absences following changes to the definition of wages, the company said in a BSE filing.

 

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.

 

"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, managing director and chief executive officer (CEO) of Tata Communications.

 

Adding to it, Kabir Ahmed Shakir, chief financial officer of Tata Communications, said, "Q3 has been a strong quarter with robust revenue growth and steadily improving margins, reflecting disciplined execution across the business. Our continued focus on capital efficiency has strengthened the balance sheet and is funding our growth priorities".

 

Shares of Tata Communications fell 5.7 per cent and closed at ₹1,616 apiece on the BSE on Wednesday.