Tata Communications Dividend: Shares fall over 3% as stock turns ex-date today; check payout, other details

Last seen, the stock was trading 3.25% lower at ₹1,644.40 on the NSE. On the BSE, shares were trading at ₹1,645.20 apiece, down 3.23%.

The Board of Directors of the company, at its meeting held on April 22, 2025, had recommended a dividend of ₹25 per equity share of a face value of ₹10 each (i.e., 250%) for approval of members at the 39th AGM. The dividend, if approved, will be paid on or after July 10, 2025, it had said.

Tata Communications Q4 FY25 Results

Tata Communications posted a more than twofold increase in net profit to ₹761.17 crore during the March 2025 quarter (Q4 FY25), helped by a one-off gain through the sale of a Chennai land parcel to an associate company.

The company had posted a consolidated profit of ₹354.57 crore in the year-ago period, it said in a filing to the exchanges.

The company is aiming to accelerate its capital expenditure to over $300 million in FY26 from $265-270 million in FY25, its Chief Financial Officer Kabir Ahmed Shaikh told PTI.

Shaikh said even as it spends more on investments, it will expand the pre-tax profit margins and ensure they get into the 23-25% range in two years from the 19.8% in the March quarter.

Shaikh said the profit margins have narrowed as compared to the October-December period.

In the reporting quarter, its revenues grew 6.34% on-year to ₹6,059 crore, while the expenses were up 5.87% to ₹5,723.2 crore.

There was a gain of ₹577 crore through the sale of the Chennai land, which helped the company post the high jump in net profits.

Besides, there was a gain of ₹311 crore through the sale of the entire stake in Tata Communications Payments Solutions, the company informed the exchanges.

Tata Communications is also mulling stake dilution to a loss-making foreign subsidiary under the data services vertical, it said, adding that this arm suffered a loss of ₹105 crore on a ₹33 crore revenue in FY25.

Shaikh declined to share its aims for the new fiscal year from a business growth perspective, adding that the same will be disclosed at an investor day later this quarter.

The company is also likely to defer its ambition of doubling revenues in two years announced in January, the CFO said, pointing out that the revised timeline will be disclosed at the investor day.

It had announced the aim to double revenues to ₹28,000 crore by FY27 in January this year. It closed FY25 with a topline of ₹23,238 crore.

The company's overall debt stood at ₹9,377 crore as of March 31, and it is planning to reduce the net debt to pre-tax profit ratio to under two times by September.