Tata Communications Q1 profit declines as revenue rises

Tata Communications Q1 Results: The company's revenue was up 10.5% to Rs 6,582.8 crore from Rs 5,959 crore in the first quarter of the previous fiscal.

Mumbai: Tata Communications reported a significant 43.9 per cent decline in its consolidated net profit to Rs 130 crore for the quarter ended 30 June 2026, compared to Rs 232 crore in the corresponding period last year. Consolidated revenue from operations rose by 10.5 per cent year-on-year.Financial PerformanceConsolidated total income for the quarter stood at Rs 6,595.76 crore, a rise from Rs 5,976.95 crore in the year-ago quarter. Total expenses increased to Rs 6,278.02 crore from Rs 5,665.26 crore in the same period last year.Segmental RevenueData Services revenue increased to Rs 5,708 crore for Q1 FY27 from Rs 5,130 crore in Q1 FY26. Digital Portfolio Revenue also saw a rise to Rs 2,940 crore from Rs 2,510 crore year-on-year.Exceptional ItemsThe company reported an exceptional loss of Rs 106.36 crore for the quarter ended 30 June 2026. This loss includes a staff cost optimisation charge of Rs 44.78 crore and a provision for contractual obligation of Rs 50 crore, among other items.Consolidated EBITDANormalised consolidated EBITDA grew by 12.7 per cent year-on-year. Normalised EBITDA reached Rs 1,281 crore with margins at 19.4 per cent, according to the company's highlights.Tata Communications Q3 FY26 Profit Nearly Doubles To ₹365 Cr, Revenue Rises 6.7% YoYManagement CommentaryGanesh Lakshminarayanan, MD and CEO, Tata Communications, said the company has started the year well with strong growth across its core and digital portfolios. He added that normalised EBITDA performance remains strong and the company expects to deliver double-digit EBITDA growth this year.Discontinued OperationsOn 22 April 2025, one of the group's wholly-owned indirect foreign subsidiaries diluted its stake to 11.49 per cent, resulting in a loss of control. The financial results of this subsidiary are disclosed as discontinued operations.Contingent LiabilitiesThe company disclosed a contingent liability of Rs 7,513.71 crore related to demand notices from the Department of Telecommunications. These notices pertain to license fees on Adjusted Gross Revenue for financial years 2005-06 to 2024-25.Tata Communications Challenges DoT's ₹991.5 Cr Demand In TDSAT; Tribunal Says No Coercive Action Till Next HearingLegal ContingencyTata Communications also noted an uncertainty of Rs 362.53 crore related to ongoing tax litigation in one of its subsidiaries. This pertains to a final VAT assessment and penalty assessment received in March 2020.Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.