Tata Communications reports 55% jump in Q3 profit to ₹364cr
What's the story
Tata Communications, a leading player in the Tata Group, has announced its financial results for the December quarter. The company reported a consolidated net profit of ₹364.28 crore, marking an impressive 55% increase from ₹236 crore during the same period last year. Sequentially, this is also a massive 99% jump from ₹183.21 crore registered in Q2 FY26 (September quarter).
Financial growth
Revenue from operations rises
Tata Communications witnessed a 7% increase in its revenue from operations, which stood at ₹6,189 crore for the quarter. This is up from ₹5,798 crore in the same period last year. The company's EBITDA was reported at ₹1,228 crore, up 4% from ₹1,181 crore in Q3 FY25 (December quarter of last year).
Business segments
Data services segment drives growth
The Data Services segment, which contributes the most to Tata Communications's total revenue, reported ₹5,359 crore for the quarter. This is a rise from ₹4,917 crore in the same period last year. However, the Voice Solutions segment saw a decline with revenues falling to ₹373 crore from ₹410.52 crore during Q3 FY25.
Margin growth
PAT margin increases to 5.9%
Tata Communications's profit after tax (PAT) margin improved by 148 basis points to 5.9% in Q3 FY26 from 4.4% in the same quarter last year. Expenses for the quarter were ₹5,914 crore, up from ₹5,807 crore in Q2 FY26 and ₹5,441 crore during Q3 FY25.