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Tata Communications Q4 Profit Plunges 75% Despite Revenue Growth

Tata Communications reported a steep 74.7% year-on-year decline in its consolidated net profit for Q4 FY26, falling to Rs 263.25 crore. This sharp drop occurred despite the company posting a 9.4% growth in revenue from operations, which rose to Rs 6,554 crore. Operationally, the firm showed improvement with EBITDA rising 14.4% and margins expanding. The board has recommended a final dividend, while the company's stock remains under pressure, down over 16% in 2026.

Key Points: Tata Communications Q4 Profit Drops 75% to Rs 263 Crore

  • 74.7% YoY profit plunge
  • 9.4% revenue growth to Rs 6,554 crore
  • EBITDA margin expands to 19.58%
  • Final dividend of Rs 17.5 per share recommended
2 min read

Tata Communications' Q4 profit plunges 75 pc to Rs 263 crore

Tata Communications reports a 74.7% fall in Q4 FY26 net profit to Rs 263 crore, despite a 9.4% rise in operational revenue.

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

Mumbai, April 22

Tata Communications Limited on Wednesday reported a 74.7 per cent decline in profitability for the fourth quarter 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.

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.

- IANS

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Reader Comments

P
Priya S
Need to look beyond the headline number. Operational metrics like EBITDA and margins have improved. The profit drop seems due to one-off items from last year. The dividend announcement is a positive signal from the board. 🧐
A
Aman W
As a retail shareholder, I'm disappointed. The core business is doing well (revenue up 9.4%), so where is all the money going? Such a sharp profit decline raises questions about cost management. Hope the AGM addresses this properly.
S
Sarah B
Working in the telecom sector, I can say the competition is brutal. Jio, Airtel are giants. Maybe Tata Comm is investing heavily in 5G and enterprise solutions, which hurts short-term profits but is necessary for the future. The dividend is a nice cushion.
V
Vikram M
The market had already priced this in, that's why the stock was up before the results. The "exceptional item" reversal from FY24 complicates the comparison. The real story is the operational improvement. Patience is key with such stocks.
K
Kavya N
Tata name carries a lot of trust, but numbers don't lie. A 75% fall is a red flag, no matter how you spin it. Hope this is just a temporary blip and not a sign of deeper issues. Will wait for the management commentary.

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