Tata Communications’ Q4 profit slumps 75 pc despite revenue growth

Tata Communications reported a steep 74.7 per cent fall in consolidated net profit to Rs 263.25 crore for Q4 FY26, despite a 9.4 per cent rise in revenue and stronger operating margins. EBITDA grew 14.4 per cent year-on-year, with margins expanding to 19.58 per cent.

Mumbai: Tata Communications Limited on Wednesday reported a 74.7 per cent decline in profitability for the fourth quarter (Q4) of FY26.

According to an exchange filing, the Tata Group telecom firm’s consolidated net profit fell sharply by 74.7 per cent year-on-year to Rs 263.25 crore in Q4 FY26, compared to Rs 1,040.34 crore in the same period previous financial year.

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Sequentially, too, net profit dropped 28 per cent from Rs 364.28 crore reported in the December quarter (Q3 FY26).

The drop in bottom line came despite a rise in core business earnings.

Revenue from operations grew 9.4 per cent to Rs 6,554 crore during the quarter, up from Rs 5,990 crore in the corresponding period of the previous fiscal.

Operationally, the company showed improvement. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 14.4 per cent year-on-year to Rs 1,284 crore from Rs 1,122 crore.

EBITDA margin also expanded to 19.58 per cent from 18.73 per cent a year earlier, as per its regulatory filing.

The company noted that it had reversed an exceptional item cost of Rs 185.52 crore that was incurred in the financial year ended March 31, 2024, which had an impact on comparability.

In a move that may offer some comfort to investors, the board of directors recommended a final dividend of Rs 17.5 per share for FY26. The payout is subject to approval at the upcoming annual general meeting.

Shares of Tata Communications ended nearly 1 per cent higher at Rs 1,527 on the NSE on Wednesday, ahead of the earnings announcement.

However, the stock has remained under pressure over a longer period, declining 16.3 per cent so far in 2026 and falling 4.5 per cent over the past 12 months.