Tata Communications Q2 Result: Consolidated PAT comes in at ₹183 crore; digital portfolio sees double-digit growth; stock surges 4%

Commenting on the results, A S Lakshminarayanan, MD and CEO, Tata Communications, said: “We have sustained momentum this quarter, led by healthy double-digit growth in our digital portfolio. The period has also marked some significant wins in government projects, advancing our role in Digital India. Our newly launched products in our strategic bets, including Voice AI and Cloud Networking, are generating significant interest and adoption among our customers, reflecting the strength and relevance of our solutions.”

Post the earnings release, the company's shares were trading around 4% higher at ₹1,946.00 apiece on the NSE.

Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said: “Our Q2 results demonstrate strong operational discipline, with Data EBITDA margins improving sequentially and reflecting the resilience of our core business. As we enter the second half of the fiscal year, we expect our strategic bets to further enhance profitability and margin strength. We remain confident in our ability to sustain growth, optimise capital efficiency and deliver long-term value for all stakeholders.”

Tata Communications Q2 result: Key numbers and details

As per the company's financial statement, Tata Communications' profit after tax from continuing operations for the September quarter came in at ₹183.21 crore. This is 27% lower than the ₹251.02 crore logged in the year-ago period. On a sequential basis, the profit from continuing operations has slipped 21% QoQ.

However, net profit (profit attributable to equity holders of the parent) came in at ₹183.06 crore against ₹189.98 crore in the June quarter and ₹227.23 crore in the year-ago period.

This shows that the profit attributable to equity holders of the parent has slipped 3.6% QoQ and 19.4% YoY.

In its press release, Tata Communications said its gross revenue came in at ₹6,100 crore, up 6.5% YoY from ₹5,728 crore logged in the year-ago quarter. Data revenue for the quarter under review stood at ₹5,179 crore, up 7.3% YoY. The company's operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), increased by 3.9% YoY to ₹1,174 crore.

EBITDA margin shrank by 48 bps YoY to 19.2%.

PAT margin, as per the company's press release, slipped 138 bps YoY to 3%.

Among other key highlights, the press release added that its Data revenue saw a growth of 7.3% YoY, and digital portfolio grew at 14.9%. Data EBITDA margin at 18.6%, showed an improvement of 140 bps sequentially.