Tata Communications Reports 65% Decline in Net Profit for Q4, Announces ₹17.5 Final Dividend

Tata Communications Posts Mixed Q4 Results Amid Higher Costs and One-Off Impacts

Tata Communications, a Tata Group company, released its financial performance for the March quarter today, reporting a consolidated net profit of ₹263 crore, a decline of 65.44% compared to ₹761 crore in the same period last year. The company's revenue rose on strong growth in digital and data services, despite being weighed down by higher costs and one-off impacts.

The net profit dropped 28% from ₹364.28 crore reported in the December quarter. Revenue from operations during the reporting quarter stood at ₹6,554 crore, marking a 9.4% increase over ₹5,990 crore in the December 2024 quarter.

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In terms of segment-wise performance, revenue from the Data Services segment, which accounts for the bulk of total revenue, stood at ₹5,704 crore, up from ₹5,121.55 crore in the same period last year. Revenue from the Voice Solutions segment improved marginally to ₹387.56 crore, compared with ₹374.12 crore in the year-ago quarter.

The company's operating performance was marked by an EBITDA of ₹1,284 crore, a 14.4% increase from ₹1,122 crore in Q3 FY25. EBITDA margins stood at 19.6%, 90 basis points higher than the 18.7% recorded in the March 2025 quarter.

For the full year, the company reported a net profit of ₹1,044 crore and revenue of ₹24,803 crore, reflecting a 35.8% decline in profit and a 7.3% increase in revenue compared with FY25.

Ganesh Lakshminarayanan, MD and CEO-Designate, Tata Communications, commented on the results, stating that the company's digital portfolio continues to drive data growth, with the balance sheet strengthening further. The company also announced a final dividend of ₹17.50 per share.

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Dividend Announcement

The company declared a final dividend of ₹17.50 per share, with the Board of Directors recommending a final dividend of ₹17.50 per share (175%) (face value of ₹10 each) for the financial year ending March 31, 2026. The dividend, if approved at the ensuing Annual General Meeting, shall be paid to eligible shareholders thereafter.