Mumbai: Tata Communications reported a sharp 75 percent year-on-year decline in consolidated net profit to ₹259.27 crore in Q4 FY26, even as revenue from operations rose 9.4 percent to ₹6,554.15 crore. Sequentially, profit declined from ₹364.23 crore in Q3, while revenue improved from ₹6,188.97 crore.
The quarterly performance reflects steady topline growth but pressure on profitability due to absence of exceptional gains seen in the previous year.
The company’s total income stood at ₹6,596.73 crore during the quarter, compared to ₹6,059.15 crore a year ago. Profit before tax declined to ₹434.09 crore from ₹913.74 crore in Q4 FY25, largely impacted by lower exceptional income.
On a sequential basis, PBT also softened from ₹457.91 crore, indicating moderation in operating momentum despite revenue expansion.
Sequential growth remained stable with revenue increasing by ₹365.18 crore quarter-on-quarter. However, total expenses rose to ₹6,182.90 crore from ₹5,913.57 crore in Q3, driven by higher network costs and employee expenses.
This increase in cost base weighed on margins, leading to a decline in profitability. Finance costs also remained elevated at ₹181.69 crore, although slightly lower than the previous quarter.
Earnings per share (EPS) for the quarter stood at ₹9.24, down from ₹12.82 in Q3 and ₹36.50 in the year-ago period. The steep year-on-year drop reflects the impact of exceptional items recorded in Q4 FY25, including gains from asset sales, which did not recur in the current quarter.
For the full year FY26, Tata Communications reported revenue of ₹24,802.72 crore, marking a 7.3 percent increase from ₹23,108.59 crore in FY25.
However, annual profit declined to ₹996.85 crore from ₹1,836.78 crore in the previous year, highlighting the impact of lower exceptional gains and higher operating costs during the year.
The board has recommended a final dividend of ₹17.50 per share for FY26, subject to shareholder approval.
Disclaimer: This summary is based on audited financial results and is not investment advice.
