Tata Communications Q2 FY27 result: Net profit rises 86%; digital platform revenue grows 18.6% YoY

The firm’s revenue from operations increased 9.6% year-on-year (YoY) to ₹6,688 crore in the September quarter of FY27, as against ₹6,100 crore registered in the year-ago period.

For Q2 FY27, the total income of Tata Communications also rose 10% to ₹6,704 crore as compared to ₹6,083 crore YoY.

The operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), jumped 21% to ₹1,422 crore as compared to ₹1,174 crore in the corresponding quarter of the previous fiscal year.

Its EBITDA margin expanded to 21.26% in the reporting quarter from 19.24% in Q2 FY26.

The company in a statement said that it has recorded the highest EBITDA and the fastest EBITDA growth for the quarter under review.

“I am pleased to report a stellar second quarter, with improved profitability across the business. Absolute EBITDA growth is a clear sign that our discipline and focus are paying off. As AI emerges as a powerful growth driver, our Unified AI Stack is resonating with customers as it helps bridge the gap between enterprise intelligence and enterprise action,” said Ganesh Lakshminarayanan, MD and CEO, Tata Communications.

For half a year (H1 FY27), Tata Communications net profit gained 27% to ₹475 crore as compared to ₹373 crore on a YoY basis. Its revenue from operations for H1 FY27 stood at ₹13,271 crore as against ₹12,060 crore in H1 FY26, marking a growth of 10%.

Tata Communications’ digital platform revenue grew 18.6% YoY in Q2 FY27, while data revenue increased 12.2%. Digital losses halved compared with the previous quarter, with digital margins at -3.6%.

“We continue to see strong demand for DC-to-DC connectivity, a structural growth opportunity where our extensive network assets and ongoing investments give us a distinct advantage. We enter the second half of the year with momentum and confidence,” said Lakshminarayanan.

Other restructuring

Along with the earnings, the Board of Directors has approved the transfer of the entire shareholding held by the company in Kaleyra, Inc., to Tata Communications (Netherlands) B.V., a wholly-owned subsidiary of the company.

“As consideration for the aforesaid transfer, the company shall subscribe to and acquire ordinary shares of TCNL at fair market value, as determined pursuant to an independent valuation report,” Tata said in a statement.

The proposed transaction is intended to simplify the company’s existing group structure by consolidating ownership of Kaleyra, Inc. under TCNL, without any change in the ultimate ownership and beneficial economic interest of the company in Kaleyra, Inc. and its subsidiaries.

Following the earnings, Tata Communications shares soared 11.19% on the National Stock Exchange to ₹1,844.5 apiece. The company has a market capitalisation of ₹52,675.27 crore.