Tata Communications' Q2 net profit falls over 19 pc to Rs 183 crore

New Delhi, Oct 15 (IANS) Tata Communications on Wednesday reported a consolidated net profit of Rs 183.21 crore for the quarter ended September 30 (Q2 FY26) -- marking a decline of over 19.3 per cent year-on-year (YoY) from Rs 227.27 crore recorded in the same quarter previous financial year (Q2 FY25).

On a sequential basis, the company’s profit also dropped 3.64 per cent from Rs 190.14 crore reported in the June quarter (Q1 FY26), according to its stock exchange filing.

Profit after tax (PAT) from continuing operations stood at Rs 183.21 crore, down 27 per cent YoY and 21 per cent quarter-on-quarter (QoQ), the exchange filing showed.

Despite the dip in profit, Tata Communications saw healthy revenue growth during the quarter.

The company’s gross revenue came in at Rs 6,100 crore, up 6.5 per cent from Rs 5,728 crore in the year-ago period.

Data revenue rose 7.3 per cent YoY to Rs 5,179 crore, while operating profit (EBITDA) grew 3.9 per cent to Rs 1,174 crore.

EBITDA margin, however, slipped 48 basis points (bps) to 19.2 per cent, while the PAT margin declined 138 bps to 3 per cent, as per the filing.

Commenting on the quarterly performance, A.S. Lakshminarayanan, Managing Director and CEO of Tata Communications, said the company maintained momentum driven by strong growth in its digital portfolio.

“This quarter marked significant wins in government projects, advancing our role in Digital India. Our new offerings such as Voice AI and Cloud Networking are gaining strong traction among customers,” he said.

Kabir Ahmed Shakir, Chief Financial Officer, added that the results reflected strong operational discipline and improving margins in the company’s data business.

“As we enter the second half of the fiscal year, we expect our strategic bets to further enhance profitability and strengthen margins,” he said.

Following the earnings announcement, shares of Tata Communications were trading around 4 per cent higher at Rs 1,946 apiece on the NSE.

The company said it remains confident about sustaining growth, optimising capital efficiency, and creating long-term value for its stakeholders in the coming quarters.

--IANS

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