Tata Communications Reports 65% Drop in Q4 Net Profit Amid Rising Costs
Tata Communications Q4 Results: Net profit drops 65% YoY to ₹263 crore; firm announces ₹17.5 final dividend
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Tata Communications reported a consolidated net profit of ₹263 crore for Q4, a 65.44% decline year-on-year, impacted by increased costs despite a 9.4% rise in revenue to ₹6,554 crore. The company declared a final dividend of ₹17.50 per share.
- 01Net profit fell to ₹263 crore, down 65.44% YoY.
- 02Revenue increased by 9.4% to ₹6,554 crore in Q4.
- 03Data Services segment revenue rose to ₹5,704 crore.
- 04EBITDA improved by 14.4% to ₹1,284 crore.
- 05Final dividend of ₹17.50 per share announced.
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Tata Communications, part of the Tata Group, reported a consolidated net profit of ₹263 crore for the fourth quarter ending March 2026, a significant 65.44% decrease from ₹761 crore in the same quarter last year. This decline is attributed to rising costs and one-off impacts, despite a 9.4% increase in revenue, which reached ₹6,554 crore compared to ₹5,990 crore in the previous quarter. The Data Services segment, which is the largest contributor to revenue, saw an increase to ₹5,704 crore, up from ₹5,121.55 crore year-on-year. The Voice Solutions segment also showed slight improvement, generating ₹387.56 crore compared to ₹374.12 crore in the prior year. The company's EBITDA rose by 14.4% to ₹1,284 crore, with EBITDA margins improving to 19.6%. For the full fiscal year, Tata Communications reported a net profit of ₹1,044 crore, reflecting a 35.8% decline, while revenue increased by 7.3% to ₹24,803 crore. The company has declared a final dividend of ₹17.50 per share, pending approval at the Annual General Meeting. Ganesh Lakshminarayanan, the MD and CEO-Designate, emphasized the strength of their digital portfolio and the company's positioning in the global communications technology market.
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The decline in net profit may affect investor confidence and could influence Tata Communications' stock performance. The declared dividend provides some return to shareholders despite the profit drop.
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