MUMBAI — Tata Communications reported a steep decline in fourth-quarter profit, even as the telecom company posted solid growth in revenue and operating performance.
The Tata Group firm said its consolidated net profit dropped 74.7 percent year over year to Rs 263.25 crore in the January–March quarter of FY26, down from Rs 1,040.34 crore in the same period last year, according to a regulatory filing.
On a sequential basis, profit also fell 28 percent from Rs 364.28 crore recorded in the previous quarter.
The decline in profit came despite gains in the company’s core business. Revenue from operations rose 9.4 percent to Rs 6,554 crore, compared with Rs 5,990 crore a year earlier.
Operating performance improved during the quarter, with earnings before interest, taxes, depreciation and amortization (EBITDA) increasing 14.4 percent year over year to Rs 1,284 crore from Rs 1,122 crore. The EBITDA margin expanded to 19.58 percent from 18.73 percent in the same period last year.
The company said financial comparisons were affected by the reversal of an exceptional item cost of Rs 185.52 crore that had been recorded in the financial year ended March 31, 2024.
In a move likely to reassure investors, the board recommended a final dividend of Rs 17.5 per share for FY26, subject to shareholder approval at the upcoming annual general meeting.
Shares of Tata Communications closed nearly 1 percent higher at Rs 1,527 on the NSE on Wednesday ahead of the earnings announcement.
Despite the uptick, the stock has been under pressure over a longer period, falling 16.3 percent so far in 2026 and declining 4.5 percent over the past year. (Source: IANS)
