Tata Communications Q1 results: Consolidated net profit shrinks 43% YoY to ₹190 crore; board approves raising ₹1,000 crore via NCDs

Tata Communication, on Thursday, July 17, announced a 42.95% year-on-year (YoY) decline in its consolidated net profit to ₹189.89 crore in the June quarter of FY26. In the corresponding period a year ago, the telecom company's profit was at ₹332.84 crore.

During the quarter under review, the firm's income from operations stood at ₹5,959.85 crore, surging 6.57% YoY from ₹5,592.32 crore in the first quarter of FY25.

The company earned ₹394.54 crore in revenue from its Voice Solutions segment in Q1FY26, down 6.70% YoY. Its revenue from the data services business surged 9.53% YoY to ₹5,151.72 crore in the June quarter of FY26. It's revenue from the transformation services segment declined by 27.34% YoY to ₹224.01 crore. While the telecommunication firm's real estate revenue slipped 12.71% YoY to ₹52.04 crore, its campaign registry segment revenue increased by 30.21% YoY to ₹189.38 crore.

At an operational level, the Tata Communications' EBITDA (earnings before interest, tax, depreciation and ammortisation) remained flat at ₹1,137 crore. However, its EBITDA margin shrank by 125 basis points to 19.1%, as against 20.3% YoY.

Commenting on the results, A.S. Lakshminarayanan, the MD and CEO of Tata Communications, said: “Despite ongoing macroeconomic headwinds and continued pressures across the industry, we delivered a stable performance this quarter — with a healthy double-digit growth in our order book and modest uptick in margins. Our digital fabric is becoming deeply embedded in our enterprise customers' operations — simplifying complex infrastructure and delivering exactly what they need, on their terms.”

The firm's data revenue came in at ₹5,130 crore in the quarter, surging 9.4% YoY, bolstered by healthy, double-digit YoY growth in its digital fabric. Its digital portfolio revenue grew by 17.4%.

“Our digital fabric continues to deliver, and we are pleased to report an all-round performance across our portfolio. We added multiple million dollar deals this quarter to our order book. We are encouraged by the losses narrowing in our digital portfolio,” said Kabir Ahmed Shakir, Chief Financial Officer at Tata Communications.

Board approves NCDs worth ₹1,000 crore

Tata Communications' board of directors also approved a fundraiser of ₹1,000 crore through the issuance of non-convertible debentures (NCDs) on private placement basis,

"The board also authorized an internal committee to take all actions in respect of finalization of terms of issuance and allotment of NCDs," the company said in a regulatory filing.

Restructuring

Tata Communications said it was in the process of moving Solutions Infini Technologies (SI), a step-down wholly owned subsidiary, directly under its ownership through an intra-group share purchase agreement for ₹123.6 crore.

The primary reason for this restructuring is to consolidate operations within the group, streamline decision-making and enhance strategic control over enterprise messaging services, which are core to the the telecos business, Tata Communications said.

The ultimate beneficial economic interest and ownership of the company in SI India will remain unchanged, the firm added.

Shares of Tata Communications closed at ₹1,729.50 apiece, up 0.31% on the National Stock Exchange (NSE) on Thursday. However, the results were announced after the market closed.