Tata Communications Limited (TATACOMM)
₹1,742.80 -1.19% last close, 16 Oct
Q2 FY27 results
Tata Communications Limited reported Q2 FY27 results on 15 Oct 2026: revenue ₹6,688 Cr (+9.6% year on year, +1.6% on the previous quarter), and net profit ₹336 Cr (+83.2% year on year); the operating margin was 21.3%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹6,688 | +9.6% | +1.6% |
| Operating profit | ₹1,422 | +21.2% | +15.6% |
| Net profit | ₹336 | +83.2% | +158.7% |
| Operating margin | 21.3% | — | — |
- Profit +146% above its own trend
- Operating margin expanded 202 bps YoY
- Exceptional items of ₹-36.5 Cr in the quarter
Quality of profit: the core business earned ₹483 Cr before tax; other income and one-off items took ₹20.1 Cr off that, leaving pre-tax profit of ₹463 Cr. Core profit (operating profit less interest and depreciation) moved +64.9% year on year.
Against its own trend: net profit of ₹336 Cr was +146.2% against the ₹136 Cr its recent growth pointed to (above trend). This is a statistical baseline, not an analyst estimate.
Share price since the results: +5.1% (close before the filing to the latest close).
TATACOMM delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 36.69% of the TATACOMM shares traded on NSE were taken to delivery, against the stock's own 20-session average of 52.88%. That is lower than usual for this stock. It traded 2.8 times its average daily volume.
Delivery in the last 5 sessions: 59.1% · 46.5% · 52.0% · 12.4% · 36.7%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Tata Communications shared its Q2FY27 earnings presentation, highlighting a sharp reduction in Digital Portfolio losses. Digital margins improved significantly to -3.6% (loss of ₹107 Cr) in Q2FY27 compared to -6.9% in Q1FY27 and -9.7% (loss of ₹886 Cr) in FY25. The presentation emphasized progress toward breakeven in the digital segment alongside the deployment of its unified AI stack via Commotion, serving 300 of the Fortune 500 customers.
- Digital Portfolio margin narrowed to -3.6% in Q2FY27, up from -6.9% in Q1FY27 and -9.7% in FY25
- Digital portfolio losses reduced to ₹107 Cr in Q2FY27 from ₹886 Cr in FY25
- Customer reach encompasses 300 of Fortune 500 and 380 of ET 500 companies
- Carries 70% of India's live Financial Services data traffic
- AI contact center solutions scaling with 700+ live agents and 600K+ voice AI mins/month
Tata Communications reported a 9.6% YoY rise in consolidated revenue from operations for Q2 FY27 at ₹6,687.89 crore compared to ₹6,099.75 crore in Q2 FY26. Consolidated profit after tax from continuing operations surged 83.2% YoY to ₹335.61 crore, supported by strong performance in Data Services and Campaign Registry segments. Data Services revenue expanded to ₹5,810.99 crore from ₹5,204.47 crore a year ago. Additionally, the company approved transferring its 100% stake in Kaleyra, Inc. valued at USD 92.625 million to wholly-owned subsidiary Tata Communications (Netherlands) B.V. to streamline corporate structure.
- Consolidated revenue from operations grew 9.6% YoY to ₹6,687.89 crore in Q2 FY27
- Net profit after tax jumped 83.2% YoY to ₹335.61 crore compared to ₹183.21 crore in Q2 FY26
- Data Services segment revenue rose 11.7% YoY to ₹5,810.99 crore with segment profit rising to ₹425.74 crore
- Approved internal transfer of Kaleyra, Inc. (FMV USD 92.625 million) to subsidiary TCNL to simplify group holding
- Appointed Ms. Ridhi Sood as Company Secretary and Compliance Officer effective November 1, 2026
Tata Communications reported a 9.6% YoY rise in consolidated revenue from operations for Q2 FY27 at ₹6,687.89 crore compared to ₹6,099.75 crore in Q2 FY26. Consolidated profit after tax from continuing operations surged 83.2% YoY to ₹335.61 crore, supported by strong performance in Data Services and Campaign Registry segments. Data Services revenue expanded to ₹5,810.99 crore from ₹5,204.47 crore a year ago. Additionally, the company approved transferring its 100% stake in Kaleyra, Inc. valued at USD 92.625 million to wholly-owned subsidiary Tata Communications (Netherlands) B.V. to streamline corporate structure.
- Consolidated revenue from operations grew 9.6% YoY to ₹6,687.89 crore in Q2 FY27
- Net profit after tax jumped 83.2% YoY to ₹335.61 crore compared to ₹183.21 crore in Q2 FY26
- Data Services segment revenue rose 11.7% YoY to ₹5,810.99 crore with segment profit rising to ₹425.74 crore
- Approved internal transfer of Kaleyra, Inc. (FMV USD 92.625 million) to subsidiary TCNL to simplify group holding
- Appointed Ms. Ridhi Sood as Company Secretary and Compliance Officer effective November 1, 2026
Tata Communications reported a 9.6% YoY rise in consolidated revenue from operations for Q2 FY27 at ₹6,687.89 crore compared to ₹6,099.75 crore in Q2 FY26. Consolidated profit after tax from continuing operations surged 83.2% YoY to ₹335.61 crore, supported by strong performance in Data Services and Campaign Registry segments. Data Services revenue expanded to ₹5,810.99 crore from ₹5,204.47 crore a year ago. Additionally, the company approved transferring its 100% stake in Kaleyra, Inc. valued at USD 92.625 million to wholly-owned subsidiary Tata Communications (Netherlands) B.V. to streamline corporate structure.
- Consolidated revenue from operations grew 9.6% YoY to ₹6,687.89 crore in Q2 FY27
- Net profit after tax jumped 83.2% YoY to ₹335.61 crore compared to ₹183.21 crore in Q2 FY26
- Data Services segment revenue rose 11.7% YoY to ₹5,810.99 crore with segment profit rising to ₹425.74 crore
- Approved internal transfer of Kaleyra, Inc. (FMV USD 92.625 million) to subsidiary TCNL to simplify group holding
- Appointed Ms. Ridhi Sood as Company Secretary and Compliance Officer effective November 1, 2026
Tata Communications has partnered with Air India to launch 'EasyRoam', an Air India-branded international travel SIM available as a physical SIM and eSIM. In its initial rollout phase, the service covers 30 countries across North America, Europe, Australia, Asia Pacific, and the Middle East, with roaming packs starting from INR 241 (excluding taxes). The coverage is planned to expand to up to 190 countries globally, utilizing Tata Communications' ecosystem of 600+ mobile network operators. Total commercial contract value and revenue-sharing terms were not disclosed in the filing.
- Launched EasyRoam travel SIM offering roaming coverage across 30 countries in the inaugural phase, scaling up to 190 countries
- Roaming pack tariffs start at INR 241 (excluding taxes) with up to 1GB complimentary data (except Maldives and Mauritius)
- Backed by Tata Communications' global connectivity network spanning 600+ mobile network operators
- Deal value and expected revenue contribution are not disclosed
Tata Communications has issued and allotted Commercial Paper amounting to ₹550 crore. The short-term debt instrument carries a discount rate of 6.20% per annum, with an issue date of September 28, 2026, and redemption scheduled for December 18, 2026. The paper was listed on the NSE on September 29, 2026. Relative to the company's existing debt of ₹5,487 crore, this CP represents approximately 10.0%, serving as routine short-term working capital financing.
- Commercial Paper issue size of ₹550 crore
- Discount rate fixed at 6.20% per annum
- Issued on September 28, 2026, and redeemable on December 18, 2026 (tenor ~81 days)
- Face value per security is ₹5,00,000
- Listed on National Stock Exchange on September 29, 2026 under ISIN INE151A14362
Tata Communications Limited announced that the Income Tax Appellate Tribunal (ITAT), Mumbai has disposed of cross-appeals for Assessment Year 2011-12 via an order dated September 25, 2026. The ITAT granted relief to the company regarding its deduction claim under section 80-IA for its National Long Distance undertaking, along with Transfer Pricing matters. While the order is positive, certain aspects remain subject to recomputation by the Assessing Officer, and the total financial impact is currently under evaluation and not disclosed.
- ITAT Mumbai passed an order dated September 25, 2026, disposing of cross-appeals for Assessment Year 2011-12.
- Tribunal granted relief on Section 80-IA deduction for the National Long Distance undertaking.
- Relief also covered Transfer Pricing adjustments and other tax-related matters.
- Exact financial quantum remains pending recomputation and consequential verification by the Assessing Officer.
Tata Communications Limited has informed the exchanges that it will participate in an in-person investor conference on September 21, 2026. The meeting will occur at the Anand Rathi G-200 Summit 2026 in Mumbai. This is a routine institutional interaction schedule filed under Regulation 30 of the SEBI Listing Regulations.
- Participation scheduled for September 21, 2026
- Event: Anand Rathi G-200 Summit 2026: Bharat - The Next Engine of Global Growth
- Mode and location: In-person meeting in Mumbai
- Filing made under SEBI LODR Regulation 30 on September 16, 2026
Tata Communications' subsidiary, Tata Communications (Canada) Ltd. (TC Canada), has reached an agreement in principle on September 14, 2026, with the Canada Revenue Agency (CRA) to settle tax claims on income from its International Telecommunications Services business. This follows an earlier in-principle settlement reached on June 28, 2025, concerning its Signaling business. The company stated that no material financial impact is currently expected from this settlement. Exact terms and financial compensation remain under finalization without a definitive completion timeline.
- Agreement in principle reached with the Canada Revenue Agency on September 14, 2026
- Settles income tax claims regarding TC Canada's International Telecommunications Services business
- Follows previous in-principle agreement dated June 28, 2025, for the Signaling business
- Company expects no material impact on its financial position from the settlement
- Terms of settlement and penalty/compensation figures are not disclosed and currently under finalization
Tata Communications' subsidiary, Tata Communications (Canada) Ltd. (TC Canada), reached an in-principle settlement with the Canada Revenue Agency (CRA) on September 14, 2026. The settlement resolves tax claims on income from TC Canada's International Telecommunications Services, following a prior June 28, 2025 in-principle settlement regarding its Signaling business. The company states there is no material financial impact currently expected on its financials (TTM PAT of Rs 936 Cr). The final terms and formal documentation are currently being finalized without a definitive completion timeline.
- In-principle agreement reached with Canada Revenue Agency on September 14, 2026
- Settlement pertains to tax claims on TC Canada's International Telecommunications Services business
- Follows earlier June 28, 2025 settlement for claims related to the Signaling business
- No material financial impact currently expected on Tata Communications' financials
- Final terms and documentation pending without a definitive completion timeline
Tata Communications has announced the dissolution of its wholly owned indirect subsidiary, Kaleyra Africa (Pty) Limited, effective September 4, 2026. The entity was domiciled in South Africa and completed voluntary liquidation through the Companies and Intellectual Property Commission (CIPC). Because Kaleyra Africa was non-operating, it contributed zero revenue and zero net worth to the company in the last financial year. No consideration was received by Tata Communications upon dissolution, resulting in zero impact on its Rs 25,426 Cr TTM top-line.
- Dissolution of wholly owned indirect subsidiary Kaleyra Africa (Pty) Limited completed effective September 4, 2026
- Intimation received by the company via email on September 7, 2026
- Turnover and net worth contribution of the dissolved entity was Not Applicable due to non-operating status
- Consideration received by Tata Communications was nil
Tata Communications Limited has informed the stock exchanges that it will participate in-person at the 'Ashwamedh - Elara India Dialogue 2026' investor conference. The event is scheduled to take place in Mumbai on September 1, 2026. This is a standard intimation pursuant to Regulation 30 of SEBI Listing Regulations, with no unpublished price-sensitive information expected to be shared.
- Participation scheduled for September 1, 2026
- Attending the 'Ashwamedh - Elara India Dialogue 2026' investor conference
- Meeting format is in-person in Mumbai
- Filing submitted under Regulation 30 of SEBI LODR Regulations
Tata Communications has partnered with Tata Motors Passenger Vehicles to provide in-built 5G cellular connectivity for the newly launched Sierra.ev. The deployment integrates the Tata Communications MOVE Connected Vehicle Platform with Tata Motors' N.IO software-defined vehicle platform. It enables over-the-air updates, infotainment, real-time diagnostics, and emergency support. Financial terms and contract value were not disclosed in the announcement against Tata Communications' TTM revenue base of ₹25,426 crore.
- Deployment of in-built 5G cellular connectivity in Tata Motors' newly launched Sierra.ev.
- Integration of Tata Communications MOVE Connected Vehicle Platform with TMPV's N.IO platform.
- Enables over-the-air (OTA) updates, connected infotainment, and remote real-time diagnostics.
- Commercial deal value and expected revenue contribution were not disclosed.
Tata Communications Limited has issued and allotted Commercial Paper (CP) aggregating to ₹300 crore. The CP carries a discount rate of 7.00% p.a., with an issue date of August 21, 2026, and maturity on February 17, 2027. The securities have a face value of ₹5,00,000 each and were listed on the NSE on August 24, 2026. Relative to the company's total debt of ₹5,487 crore and TTM revenue of ₹25,426 crore, the ₹300 crore issuance represents routine short-term working capital management.
- Issued Commercial Paper aggregating to ₹300 crore
- Discount rate fixed at 7.00% p.a.
- Tenor spans from issue date August 21, 2026, to redemption on February 17, 2027
- Face value per security set at ₹5,00,000/- and listed on NSE on August 24, 2026
Tata Communications Limited has allotted 68,894 equity shares of face value ₹10 each to eligible employees following the exercise of vested options under its Employee Stock Unit Plan 2023. Consequently, the company's paid-up equity share capital increased to ₹285.09 crore (₹2,85,08,56,430), consisting of 28,50,85,643 equity shares. This represents an immaterial dilution of approximately 0.024% of the total equity base.
- Nomination and Remuneration Committee approved allotment of 68,894 equity shares on August 21, 2026
- Allotment made at a face value of ₹10 per equity share under RSU Plan 2023
- Paid-up equity capital increased to ₹285,08,56,430 divided into 28,50,85,643 equity shares
Financial Performance
Revenue Growth by Segment
Consolidated operating revenue grew 10% YoY to INR 23,197 Cr in FY25. The Data segment, the primary driver, grew 13.7% to INR 19,513 Cr. Within the Digital Management Services (DMS) segment, the Digital Portfolio Services (DPS) sub-segment grew by approximately 29% YoY, bolstered by the full-year operations of acquisitions Kaleyra and Switch.
Geographic Revenue Split
Not disclosed in available documents, though the company operates globally across multiple industry segments and connects businesses to 80% of the world's cloud giants.
Profitability Margins
Consolidated operating margins remained stable at approximately 20% in FY25 compared to 20.4% in FY24. Standalone PAT increased by 64.55% to INR 1,050.87 Cr, primarily due to a one-time gain on the sale of an asset held for sale, despite a standalone revenue decline of 8.93% to INR 7,277.86 Cr.
EBITDA Margin
Consolidated EBITDA margin was approximately 19.56% in FY25, a slight moderation from 20.17% in FY24. This 61 basis point compression is attributed to the margin-dilutive impact of integrating new digital business acquisitions and provisioning in the SAARC region.
Capital Expenditure
The company maintains high capital intensity to support its data segment and network overhaul. While specific annual Cr figures for future capex are not totaled, the company generates healthy cash accruals of INR 4,000-5,500 Cr per annum to fund these requirements and debt obligations.
Credit Rating & Borrowing
CRISIL reaffirmed its 'CRISIL A1+' rating on the commercial paper programme, with the rated amount enhanced from INR 1,200 Cr to INR 1,800 Cr. Interest coverage ratio stood at 6.4 times in FY25, down from 7 times in FY24 due to increased debt for acquisitions.
Operational Drivers
Raw Materials
Network infrastructure components (fiber optics, routers, servers) and Bandwidth/Interconnect capacity represent the primary operational inputs, though specific % of total cost is not disclosed.
Import Sources
Global sourcing across 100+ countries of operation, including India, Netherlands (via TCNL), and the USA (via Commotion, Inc. and Kaleyra).
Key Suppliers
Third-party vendors for service delivery and network infrastructure maintenance; specific company names are not disclosed.
Capacity Expansion
Expansion is focused on digital services and cloud connectivity. The company currently connects to 80% of global cloud giants and is expanding its footprint through the acquisition of a majority stake in Commotion, Inc. and the integration of Kaleyra and Switch.
Raw Material Costs
Operating costs are driven by network integration and cost of services. Integration costs for recent acquisitions are currently margin-dilutive, contributing to the slight dip in EBITDA margin to 19.56%.
Manufacturing Efficiency
Not applicable as a service provider; however, Core Connectivity business maintains robust PBILDT margins of approximately 44%, acting as the company's cash flow backbone.
Strategic Growth
Expected Growth Rate
11-13%
Growth Strategy
Growth is targeted through the 'Fit to Grow' pillar, focusing on the Data segment which is expected to grow at 11-13% CAGR. This will be achieved through inorganic expansion (e.g., acquiring Commotion, Inc.), scaling the Digital Portfolio Services which grew 29% recently, and leveraging GenAI use cases through improved data maturity.
Products & Services
Core and next-gen connectivity, cloud hosting, security solutions, media services, collaboration and connected solutions, and international transmission services.
Brand Portfolio
Tata Communications, Kaleyra, Switch, Commotion Inc.
New Products/Services
GenAI-driven digital transformation solutions and enhanced cloud security services; specific revenue contribution % for new launches is not disclosed.
Market Expansion
Expansion into the US market via Commotion, Inc. and strengthening the digital portfolio across global markets to serve Fortune 500 clients.
Market Share & Ranking
Recognized as an 'Industry Leader' with a TBEM score of 668; specific market share % is not disclosed.
Strategic Alliances
Majority stake acquisition in Commotion, Inc. by subsidiary Tata Communications (Netherlands) B.V. and integration of Kaleyra.
External Factors
Industry Trends
The telecom sector is shifting toward digital services and cloud connectivity. While core connectivity remains stable with 44% margins, the industry is disrupting through GenAI and stricter data sovereignty laws, requiring TCL to pivot toward its 'synergized' data maturity model.
Competitive Landscape
Operates in a complex, competitive global landscape against major international telecom and cloud service providers.
Competitive Moat
Durable advantage derived from being part of the US$100 billion Tata Group (58.86% ownership), providing significant financial flexibility and a 'Crisil AAA' parentage link. This moat is sustained by the global subsea cable network that connects 80% of cloud giants, creating high switching costs for enterprise clients.
Macro Economic Sensitivity
Highly sensitive to global enterprise IT spending and trade restrictions which impact cross-border data flows and network reliability.
Consumer Behavior
Shift toward digital-first enterprise solutions and increased demand for secure, cross-border data transmission.
Geopolitical Risks
Trade restrictions and evolving data sovereignty requirements in various jurisdictions impact operational resilience and enterprise spending.
Regulatory & Governance
Industry Regulations
Subject to TRAI regulations in India and international data sovereignty requirements. Compliance is managed through a Global Management Committee (GMC) and a Risk Management Committee.
Environmental Compliance
Committed to carbon neutrality by FY30 and net-zero by FY35; costs involve energy efficiency upgrades and renewable energy deployment.
Taxation Policy Impact
The company faces ongoing disputes regarding tax holiday and expense claims where Indian tax authorities have challenged previous filings based on differing interpretations of tax laws.
Legal Contingencies
Pending disputed tax matters related to tax holiday claims and expense deductions; specific INR Cr values for these contingencies are not disclosed.
Risk Analysis
Key Uncertainties
Integration of large acquisitions (like Kaleyra) may remain margin-dilutive in the short term. Regulatory intervention in the dynamic telecom sector remains a persistent risk.
Geographic Concentration Risk
Global operations mitigate single-country risk, though SAARC region provisioning recently impacted margins.
Third Party Dependencies
Significant risk from dependence on third-party vendors for service delivery; disruptions can immediately affect customer service levels.
Technology Obsolescence Risk
High risk; newer technologies necessitate sizeable fresh investments or complete overhaul of current networks to remain competitive.
Credit & Counterparty Risk
Receivables quality is supported by a high-quality client base (Fortune 500), though specific credit exposure % is not disclosed.
