Tata Communications shares jump nearly 5% post Q1 earnings; key things to know

In the corresponding period a year ago, the telecom company's profit was at ₹332.84 crore.

The firm also 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.

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.

Last seen, the company’s stock was trading at ₹11,810.3 apiece on NSE, gaining 4.54%.

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

1. Tata Communications also 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.

2. 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 telecos business, Tata Communications said.

3. 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.

4. Revenue from the transformation services segment declined by 27.34% YoY to ₹224.01 crore.

5. 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.

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

7. 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%.

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.”

“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.