₹7,800 crore demand notice! Tata Communications shares in focus; all you need to know

The demand has been raised by the Department of Telecom (DoT) for adjusted gross revenue (AGR) from 2005-06 till 2023-24, as per the note dated July 17.

"As of June 30, 2025, the company has received 'Show Cause-cum Demand Notices' ('demand notices') from the Department of Telecommunications of India aggregating to ₹7,827.55 crore for financial years ranging from FY 2005-06 to FY 2023-24, which have been revised over a period of time," Tata Communications Managing Director AS Lakshminarayan said.

The MD said the demand notices include ₹276.68 crore towards disallowance of deductions claimed by the company on a payment basis for the financial year (FY) 2010-11 under the ISP (internet service provider) license and FY07 and FY10 under the NLD (national long distance) license.

Tata Communications has existing appeals relating to its ILD (International Long Distance), NLD, and ISP licenses that were filed in the past and are pending at the Supreme Court and telecom tribunal TDSAT.

Lakshminarayan said the company's appeals are not covered by the apex court judgement dated October 24, 2019, on AGR under the old telecom license regime called UASL.

"Further, the company believes that all its licenses are different from UASL, which was the subject matter of the Hon'ble Supreme Court judgement of October 24, 2019. The company, based on its assessment and independent legal opinions, believes that it will be able to defend its position," Lakshminarayan said.

As per the initial calculation by the government, telecom operators had liability to pay around ₹1.65 lakh crore in total AGR dues till FY19.

The calculation as of March 2022 showed that the AGR liability on Bharti Airtel was ₹31,280 crore, Vodafone Idea ₹59,236.63 crore, Reliance Jio ₹631 crore, BSNL ₹16,224 crore, and MTNL ₹5,009.1 crore up to financial year 2018-19.

The government calculation at that time did not include liability on Tata Communications.

Tata Communications Q1 FY26 Results

The Tata Group company posted a 43% dip in consolidated profit to ₹190.14 crore in the first quarter ended June 30, 2025.

The company had posted a net profit of ₹332.93 crore in the same period a year ago.

The consolidated income from operations of Tata Communications increased by 6.5% to ₹5,959.85 crore during the reported quarter from ₹5,592.32 crore in the June 2024 quarter, the company said in a regulatory filing on Thursday.

"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," Tata Communications MD and CEO A S Lakshminarayanan said.

The company's revenue from data services increased by about 9.5% to ₹5,151.72 crore.