Tata Communications Posts Q1 FY27 Revenue of ₹6,582.82 Crore; Exceptional Loss Impacts Net Profit

Tata Communications Limited (BSE: 500483, NSE: TATACOMM) announced its consolidated financial results for the first quarter ended June 30, 2026 (Q1 FY27). The digital ecosystem enabler reported a steady 10.45% year-on-year (YoY) increase in operational revenue, crossing the ₹6,580 crore mark, driven primarily by strong performance in its core Data Services segment and rapid expansion in Campaign Registry.

However, exceptional charges incurred during the quarter weighed down the bottom line, resulting in consolidated net profit falling to ₹129.72 crore.

Executive Financial Summary

For Q1 FY27, Tata Communications recorded Income from Operations of ₹6,582.82 crore, up from ₹5,959.85 crore in the corresponding period of the previous year (Q1 FY26). On a sequential basis, revenue remained largely stable, recording a marginal growth of 0.44% over ₹6,554.15 crore in Q4 FY26.

Total Income: Stood at ₹6,595.76 crore, compared to ₹5,976.95 crore in Q1 FY26 and ₹6,596.73 crore in Q4 FY26. Net other income contributed ₹12.94 crore during the quarter.

Total Expenses: Rose 10.82% YoY to ₹6,278.02 crore (vs. ₹5,665.26 crore in Q1 FY26). Network and transmission costs formed the bulk of expenditure at ₹3,144.09 crore, followed by employee benefits expenses at ₹1,239.73 crore and other operating expenses at ₹968.86 crore.

Operating Profitability: Profit before exceptional items, tax, and share of associates came in at ₹317.74 crore, up 1.94% YoY from ₹311.69 crore in Q1 FY26, though lower sequentially compared to ₹413.83 crore in Q4 FY26.

Exceptional Items: The quarter was impacted by an exceptional loss of ₹106.36 crore, compared to an exceptional loss of ₹20.44 crore in Q1 FY26 and an exceptional gain of ₹20.26 crore in Q4 FY26.

Profit Before Tax (PBT): Post exceptional impact, PBT stood at ₹211.38 crore, down 27.42% YoY from ₹291.25 crore in Q1 FY26.

Net Profit (PAT): Consolidated Profit After Tax from continuing operations reached ₹129.72 crore. In Q1 FY26, net profit after accounting for discontinued operations was ₹190.14 crore (which included a loss of ₹42.19 crore from discontinued operations).

Profit Attributable to Parent Equity Holders: Stood at ₹134.23 crore, translating to a Basic Earnings Per Share (EPS) of ₹4.71 (Face Value ₹10 per share).

Segment Performance Analysis

Data Services (Core Growth Engine)

Revenue: Expanded 10.71% YoY to ₹5,703.58 crore (vs. ₹5,151.72 crore in Q1 FY26), accounting for nearly 86.6% of overall operational revenue.

Segment Result: Generated ₹250.56 crore in segment profit compared to ₹239.29 crore in Q1 FY26.

Asset Base: Segment assets increased to ₹20,973.28 crore as of June 30, 2026.

Campaign Registry Revenue: Surged 36.60% YoY to ₹258.70 crore from ₹189.38 crore in Q1 FY26, showcasing strong momentum.

Segment Result: Delivered ₹147.14 crore in profitability, up 19.70% YoY from ₹122.93 crore.

Voice Solutions

Revenue: Trailed slightly at ₹381.95 crore compared to ₹394.54 crore in Q1 FY26.

Segment Result: Earned ₹20.61 crore, down from ₹37.38 crore in the year-ago quarter.

Transformation Services & Real Estate

Transformation Services: Posted revenue of ₹194.59 crore with segment results of ₹44.38 crore.

Real Estate: Contributed ₹51.99 crore in revenue and ₹28.01 crore in segment profit.

Balance Sheet Overview

As of June 30, 2026, Tata Communications' total consolidated segment assets stood at ₹28,827.29 crore (including unallocated assets of ₹6,049.69 crore), compared to ₹28,403.94 crore as of March 31, 2026.

Total liabilities stood at ₹25,086.42 crore, which includes unallocated liabilities of ₹13,171.99 crore. Paid-up equity share capital remained unchanged at ₹285.02 crore.

Commenting on the results, Ganesh Lakshminarayanan, MD and CEO, Tata Communications, said: "We have started the year well with strong growth across both our core and digital portfolios. Normalised EBITDA performance remains strong. We stay on track to deliver double-digit EBITDA growth this year. Our focus is on accelerating growth in our network fabric business, expanding our platform revenues, improving digital profitability and strengthening our EBITDA-to-cash conversion. We have the right foundations, a clear roadmap, and a sizeable opportunity ahead."

Shares of Tata Communications Limited was last trading in BSE at Rs. 1817.45 as compared to the previous close of Rs. 1822.25. The total number of shares traded during the day was 13406 in over 698 trades.

The stock hit an intraday high of Rs. 1831.85 and intraday low of 1800.30. The net turnover during the day was Rs. 24331531.00.

Source : Equity Bulls

Keywords

TataCommunications INE151A01013 Q1FY27 Q1FY2027 ResultUpdate