Mumbai: Tata Communications is tightening its corporate structure, dissolving an indirect arm while shifting its business contracts to another group entity.
Subsidiary Dissolved
The company confirmed that its wholly owned indirect subsidiary has undergone dissolution with effect from February 16, 2026. The move forms part of an internal corporate restructuring exercise rather than an external sale or divestment.
For FY25, the entity contributed Rs 766.70 crore in turnover, accounting for 3.32 percent of the company’s revenue, and Rs 790.15 crore in net worth, representing 12.87 percent of the total. These figures highlight that while the unit was meaningful, it was not central to overall operations.
Contracts Transferred
All existing business contracts and agreements of BUC Mobile Inc. have been transferred to Kaleyra US Inc., another indirect subsidiary of Tata Communications Limited, under an Asset Transfer Agreement effective February 1, 2025.
This ensures operational continuity despite the legal dissolution of the entity. The restructuring appears designed to consolidate operations under a streamlined structure rather than disrupt service delivery.
No Cash Consideration
Since the dissolved entity was an indirect subsidiary, Tata Communications did not receive any consideration following the dissolution.
The filing clarifies that this was not a sale transaction but an internal realignment. There was no agreement for sale entered into, reinforcing that the move was administrative in nature.
Regulatory Disclosure Filed
The update was submitted to both the National Stock Exchange of India Limited and BSE Limited on February 27, 2026, under Regulation 30 of the Listing Obligations and Disclosure Requirements Regulations, 2015, read with the relevant SEBI circular dated January 30, 2026.
Company Secretary and Compliance Officer Zubin Adil Patel signed the disclosure.
With contracts reassigned and no cash changing hands, Tata Communications’ restructuring signals consolidation rather than contraction, as it reshapes its subsidiary structure while maintaining operational continuity.
