Tata Communications' Q2 FY 2025-26 Quarterly Results

Result Summary

• Tata Communications Ltd reported a 1.8% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 5.2%.
• Its expenses for the quarter were up by 2.5% QoQ and 5.5% YoY.
• The net profit decreased 3.6% QoQ and decreased 19.4% YoY.
• The earnings per share (EPS) of Tata Communications Ltd stood at 6.42 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Tata Communications Ltd is a leading global digital ecosystem enabler that offers a wide range of communication and technology solutions. The company's primary services include network services, data center services, cloud services, collaboration services, and security services. Tata Communications operates across various sectors, including telecommunications, automotive, healthcare, and media. It is part of the Tata Group, which is one of India's largest and oldest conglomerates. As of the latest data, there are no specific major developments or strategic changes reported for the company within the provided timeframe.

Revenue

For the second quarter of the fiscal year 2026 (Q2FY26), Tata Communications Ltd reported total income of ₹6082.51 crores. This represents a quarter-over-quarter (QoQ) increase of 1.8% from ₹5976.95 crores in Q1FY26 and a year-over-year (YoY) growth of 5.2% from ₹5781.47 crores in Q2FY25. The steady increase in total income suggests robust operational performance over the periods compared. The growth in revenue on both a quarterly and annual basis reflects the company's ability to sustain its income streams amidst a competitive and evolving industry landscape.

Profitability

In Q2FY26, the company posted a Profit Before Tax (PBT) of ₹254.64 crores, which is a decrease of 12.6% QoQ from ₹291.25 crores in Q1FY26 and a drop of 20.6% YoY from ₹320.90 crores in Q2FY25. The tax expense for Q2FY26 was ₹82.13 crores, showing a significant QoQ increase of 25.5% from ₹65.43 crores in Q1FY26, but a decrease of 15.9% YoY from ₹97.62 crores in Q2FY25. The Profit After Tax (PAT) stood at ₹183.21 crores for Q2FY26, marking a reduction of 3.6% QoQ from ₹190.14 crores and a 19.4% decline YoY from ₹227.27 crores. Earnings Per Share (EPS) also reflected these changes, decreasing by 3.6% QoQ and 19.4% YoY to ₹6.42. These metrics highlight variations in profitability that could be attributed to changes in operational costs, tax rates, or other financial factors.

Operating Metrics

Total expenses for Tata Communications in Q2FY26 were ₹5806.87 crores, which represents a 2.5% QoQ increase from ₹5665.26 crores in Q1FY26 and a 5.5% YoY increase from ₹5503.47 crores in Q2FY25. The rise in expenses outpaced the revenue growth on a quarterly basis, which could have implications for the company's cost management strategies. Additionally, the company's operating environment and cost structure are reflected in these figures, and they play a crucial role in understanding the financial health and operational efficiency of the company. The trends in these operating metrics provide insights into the dynamic nature of the company's business operations and its ability to adapt to changing market conditions.