Tata Communications

Net Profit down 43.0% YoY to Rs 190 crore in Q1FY2026

On consolidated basis

Quarter ended June 2025 compared with Quarter ended June 2024.

Net sales (including other operating income) of Tata Communications has increased 6.57% to Rs 5959.85 crore.  Sales of Global Voice Solutions segment has gone down 6.66% to Rs 394.54 crore (accounting for 6.56% of total sales).  Sales of Global Data and Managed Services segment has gone up 9.39% to Rs 5,151.72 crore (accounting for 85.70% of total sales).  Sales of Real Estate segment has gone down 12.71% to Rs 52.04 crore (accounting for 0.87% of total sales).  Sales of Transformation Services segment has gone down 27.34% to Rs 224.01 crore (accounting for 3.73% of total sales).  Sales of Campaign Registry segment has gone up 30.21% to Rs 189.38 crore (accounting for 3.15% of total sales).  Inter-segment sales rose Rs 47.57 crore to Rs 51.84 crore.  

Profit before interest, tax and other unallocable items (PBIT) has slumped 1.20% to Rs 471.12 crore.  PBIT of Global Voice Solutions segment fell 4.96% to Rs 37.38 crore (accounting for 7.93% of total PBIT).  PBIT of Global Data and Managed Services segment fell 17.80% to Rs 239.29 crore (accounting for 50.79% of total PBIT).  PBIT of Real Estate segment fell 9.46% to Rs 28.24 crore (accounting for 5.99% of total PBIT).  PBIT of Transformation Services segment rose 124.48% to Rs 43.28 crore (accounting for 9.19% of total PBIT).  PBIT of Campaign Registry segment rose 23.19% to Rs 122.93 crore (accounting for 26.09% of total PBIT).  

PBIT margin of Global Voice Solutions segment rose from 9.30% to 9.47%.  PBIT margin of Global Data and Managed Services segment fell from 6.18% to 4.64%.  PBIT margin of Real Estate segment rose from 52.31% to 54.27%.  PBIT margin of Transformation Services segment rose from 6.25% to 19.32%.  PBIT margin of Campaign Registry segment fell from 68.61% to 64.91%.  Overall PBIT margin fell from 8.39% to 7.84%.  

Operating profit margin has declined from 20.32% to 19.07%, leading to 0.02% rise in operating profit to Rs 1,136.81 crore.  Employee cost increased from 20.07% to 20.43%.   Other expenses rose from 59.60% to 60.49%.   Telecommuncation charges rose from 42.24% to 45.79%.   

Other income fell 25.03% to Rs 17.1 crore.  PBIDT fell 0.48% to Rs 1153.91 crore.  Provision for interest rose 3.66% to Rs 176.53 crore.  

PBDT fell 1.19% to Rs 977.38 crore.  Provision for depreciation rose 4.95% to Rs 665.69 crore.  

Profit before tax down 12.16% to Rs 311.69 crore.  Share of profit/loss was 114.85% higher at Rs 6.51 crore.  Provision for tax was expense of Rs 65.43 crore, compared to Rs 86.79 crore.  Effective tax rate was 21.97% compared to 19.57%.

Minority interest increased 77.78% to Rs 0.16 crore.  Net profit attributable to owners of the company decreased 34.91% to Rs 232.17 crore.  

Promoters? stake was 58.86% as of 30 June 2025 ,compared to 58.86% as of 30 June 2024 .  

 
Full year results analysis.

Net sales (including other operating income) of Tata Communications has increased 11.18% to Rs 23108.59 crore.  Sales of Global Voice Solutions segment has gone down 3.90% to Rs 1,632.81 crore (accounting for 7.01% of total sales).  Sales of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment has gone up 13.76% to Rs 19,588.47 crore (accounting for 84.05% of total sales).  Sales of Real Estate segment has gone down 4.28% to Rs 226.93 crore (accounting for 0.97% of total sales).  Sales of Transformation Services segment has gone down 22.48% to Rs 1,201.90 crore (accounting for 5.16% of total sales).  Sales of Campaign Registry segment has gone up 147.66% to Rs 655.10 crore (accounting for 2.81% of total sales).  Inter-segment sales rose Rs 186.08 crore to Rs 196.62 crore.  

Profit before interest, tax and other unallocable items (PBIT) has jumped 2.97% to Rs 1,976.93 crore.  PBIT of Global Voice Solutions segment fell 15.33% to Rs 156.33 crore (accounting for 7.91% of total PBIT).  PBIT of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment fell 17.68% to Rs 1,176.35 crore (accounting for 59.50% of total PBIT).  PBIT of Real Estate segment fell 15.55% to Rs 123.73 crore (accounting for 6.26% of total PBIT).  PBIT of Transformation Services segment rose 14,592.20% to Rs 74.93 crore (accounting for 3.79% of total PBIT).  PBIT of Campaign Registry segment rose 179.96% to Rs 445.59 crore (accounting for 22.54% of total PBIT).  

PBIT margin of Global Voice Solutions segment fell from 10.87% to 9.57%.  PBIT margin of Global Dhttp://192.168.2.14:81/DBConversion/Segmentation_Cons.aspx#ata and Managed Services segment fell from 8.30% to 6.01%.  PBIT margin of Real Estate segment fell from 61.80% to 54.52%.  PBIT margin of Transformation Services segment rose from 0.03% to 6.23%.  PBIT margin of Campaign Registry segment rose from 60.17% to 68.02%.  Overall PBIT margin fell from 9.15% to 8.48%.  

Operating profit margin has declined from 20.77% to 19.77%, leading to 5.83% rise in operating profit to Rs 4,569.03 crore.  Employee cost decreased from 20.89% to 19.72%.   Other expenses rose from 58.33% to 60.51%.   Telecommuncation charges rose from 38.87% to 43.48%.   

Other income fell 50.67% to Rs 130.3 crore.  PBIDT rose 2.58% to Rs 4699.33 crore.  Provision for interest rose 15.71% to Rs 729.06 crore.  Loan funds rose to Rs 12,357.32 crore as of 31 March 2025 from Rs 11,263.17 crore as of 31 March 2024.  Inventories rose to Rs 157.84 crore as of 31 March 2025 from Rs 83.54 crore as of 31 March 2024.  Sundry debtors were higher at Rs 4,006.10 crore as of 31 March 2025 compared to Rs 3,758.36 crore as of 31 March 2024.  Cash and bank balance declined from Rs 842.45 crore as of 31 March 2024 to Rs 587.41 crore as of 31 March 2025.  Investments rose to Rs 2,713.93 crore as of 31 March 2025 from Rs 1,608.22 crore as of 31 March 2024 .  

PBDT rose 0.48% to Rs 3970.27 crore.  Provision for depreciation rose 8.12% to Rs 2592.1 crore.  Fixed assets declined from Rs 13,010.71 crore as of 31 March 2024 to Rs 10,268.46 crore as of 31 March 2025.  Intangible assets increased from Rs 1,783.73 crore to Rs 4,750.41 crore.  

Profit before tax down 11.31% to Rs 1,378.17 crore.  Share of profit/loss was 112.81% higher at Rs 42.54 crore.  Provision for tax was expense of Rs 486.49 crore, compared to Rs 213.5 crore.  Effective tax rate was 23.03% compared to 15.95%.

Minority interest decreased 66.13% to Rs 0.42 crore.  Net profit attributable to owners of the company increased 44.67% to Rs 1,625.27 crore.  

Equity capital stood at Rs 285.00 crore as of 31 March 2025 to Rs 285.00 crore as of 31 March 2024.  Per share face Value remained same at Rs 10.00.  

Promoters? stake was 58.86% as of 31 March 2025 ,compared to 58.86% as of 31 March 2024 .  

Cash flow from operating activities decreased to Rs 2,910.81 crore for year ended March 2025 from Rs 3,182.00 crore for year ended March 2024.  Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 2,205.59 crore, compared to Rs 2,082.34 crore during the year ended March 2024.  

 

Operational highlights:

Data revenue grew 9.4% and stood at Rs 5130 crore driven by digital fabric.

Management Commentary:

Commenting on the performance A. S Laxminarayanan, MD and CEO said ?Despite ongoing macroeconomic headwinds and continued pressures across the industry, we delivered a stable performance this quarter ? with a healthy double-digit growth in our order book and modest uptick in margins. Our digital fabric is becoming deeply embedded in our enterprise customers` operations ? simplifying complex infrastructure and delivering exactly what they need, on their terms.?

Commenting on the results, Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said   ?Our digital fabric continues to deliver, and we are pleased to report an all-round performance across our portfolio. We added multiple million dollar deals this quarter to our order book. We are encouraged by the losses narrowing in our digital portfolio.?

Tata Communications : Consolidated Results

Quarter ended Year ended Particulars 202506 202406 Var.(%) 202503 202403 Var.(%) Net Sales (including other operating income) 5,959.85 5,592.32 6.57 23,108.59 20,784.68 11.18 OPM (%) 19.07 20.32 -125 bps 19.77 20.77 -100 bps OP 1,136.81 1,136.62 0.02 4,569.03 4,317.20 5.83 Other Inc. 17.10 22.81 -25.03 130.30 264.12 -50.67 PBIDT 1,153.91 1,159.43 -0.48 4,699.33 4,581.32 2.58 Interest 176.53 170.30 3.66 729.06 630.09 15.71 PBDT 977.38 989.13 -1.19 3,970.27 3,951.23 0.48 Depreciation 665.69 634.31 4.95 2592.1 2397.35 8.12 PBT 311.69 354.82 -12.16 1378.17 1553.88 -11.31 Share of Profit/(Loss) from Associates 6.51 3.03 114.85 42.54 19.99 112.81 PBT before EO 318.2 357.85 -11.08 1420.71 1573.87 -9.73 EO Income -20.44 85.71 PL 691.47 -235.66 LP PBT after EO 297.76 443.56 -32.87 2112.18 1338.21 57.84 Taxation 65.43 86.79 -24.61 486.49 213.5 127.86 PAT 232.33 356.77 -34.88 1625.69 1124.71 44.54 Minority Interest (MI) 0.16 0.09 77.78 0.42 1.24 -66.13 Net profit 232.17 356.68 -34.91 1625.27 1123.47 44.67 P/(L) from discontinued operations net of tax -42.19 -23.84 -76.97 211.09 -155.13 LP Net profit after discontinued operations 189.98 332.84 -42.92 1836.36 968.34 89.64 EPS (Rs)* 8.70 10.10 -13.85 38.47 46.34 -16.98 * EPS is on current equity of Rs 285.00 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Tata Communications : Consolidated Segment Results

Quarter ended Year ended % of (Total) 202506 202406 Var.(%) % of (Total) 202503 202403 Var.(%) Sales Global Voice Solutions 6.56 394.54 422.69 -6.66 7.01 1,632.81 1,699.06 -3.90 Global Data and Managed Services 85.70 5,151.72 4,709.31 9.39 84.05 19,588.47 17,219.68 13.76 Others 0.00 0.00 0.00 - South Africa Operations 0.00 0.00 0.00 - Payment 0.00 0.00 35.56 - Data Centre Services 0.00 0.00 0.00 - Real Estate 0.87 52.04 59.62 -12.71 0.97 226.93 237.07 -4.28 Transformation Services 3.73 224.01 308.32 -27.34 5.16 1,201.90 1,550.43 -22.48 Campaign Registry 3.15 189.38 145.44 30.21 2.81 655.10 264.52 147.66 Total Reported Sales 100.00 6,011.69 5,680.94 5.82 100.00 23,305.21 20,970.76 11.13 Less: Inter segment revenues   51.84 47.57 8.98   196.62 186.08 5.66 Net Sales 100.00 5,959.85 5,633.37 5.80 100.00 23,108.59 20,784.68 11.18 PBIT Global Voice Solutions 7.93 37.38 39.33 -4.96 7.91 156.33 184.64 -15.33 Global Data and Managed Services 50.79 239.29 291.09 -17.80 59.50 1,176.35 1,429.03 -17.68 Others 0.00 0.00 0.00 - South Africa Operations 0.00 0.00 0.00 - Payment 0.00 0.00 -3.84 - Data Centre Services 0.00 0.00 0.00 - Real Estate 5.99 28.24 31.19 -9.46 6.26 123.73 146.51 -15.55 Transformation Services 9.19 43.28 19.28 124.48 3.79 74.93 0.51 14,592.20 Campaign Registry 26.09 122.93 99.79 23.19 22.54 445.59 159.16 179.96 Total PBIT 100.00 471.12 476.84 -1.20 100.00 1,976.93 1,919.85 2.97 Less : Interest 176.53 172.20 2.51 729.06 630.09 15.71 Add: Other un-allcoable -3.34 112.05 PL 821.77 28.46 2,787.46 PBIT Margin(%) Global Voice Solutions   9.47 9.30 16.96   9.57 10.87 -129.29 Global Data and Managed Services   4.64 6.18 -153.63   6.01 8.30 -229.35 Others   0.00 0.00 0.00 South Africa Operations   0.00 0.00 0.00 Payment   0.00 -10.80 1,079.87 Data Centre Services   0.00 0.00 0.00 Real Estate   54.27 52.31 195.13   54.52 61.80 -727.69 Transformation Services   19.32 6.25 1,306.73   6.23 0.03 620.14 Campaign Registry   64.91 68.61 -370.07   68.02 60.17 784.93 PBT 100.00 291.25 416.69 -30.10 100.00 2,069.64 1,318.22 57.00

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