Tata Communications Limited Earnings Summary — Q2 FY2027
Tata Communications Delivers Strong Q2 FY2027 Profit Surge with Net Profit Up 86% YoY and Revenue Reaching ₹6,688 Crore
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 6 consecutive quarters.
- Revenue of ₹6,688 Cr is 9.6% higher year-on-year.
- Revenue has compounded at 8.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹341 Cr is 86.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 1.1% annualised across the period.
- Operating margin stands at 21.3% in Q2 FY2027.
- Operating margin expanded by 202 bps year-on-year.
- Over the last two years operating margin has expanded by 154 bps.
- PBT margin is 6.9%.
- Expense growth of 6.9% remained below revenue growth of 9.6%.
- Operating profit of ₹1,422 Cr is 21.2% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q2 FY2027 | Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 6,688 | 6,583 | 6,554 | 6,189 | 6,100 | 5,960 | 5,990 | 5,798 | 5,728 | 5,592 |
| Expenses | Stable | 5,266 | 5,353 | 5,270 | 4,961 | 4,926 | 4,823 | 4,868 | 4,617 | 4,598 | 4,456 |
| Operating Profit | Stable | 1,422 | 1,230 | 1,284 | 1,228 | 1,174 | 1,137 | 1,122 | 1,181 | 1,129 | 1,137 |
| Operating Margin | Stable | 21.3% | 18.7% | 19.6% | 19.8% | 19.2% | 19.1% | 18.7% | 20.4% | 19.7% | 20.3% |
| Other Income | Volatile | -20 | -93 | 63 | 183 | -38 | -46 | 926 | -7 | 29 | 85 |
| Interest | Stable | 198 | 186 | 182 | 201 | 202 | 177 | 182 | 187 | 189 | 170 |
| Depreciation | Stable | 741 | 739 | 731 | 751 | 679 | 666 | 672 | 637 | 648 | 634 |
| Profit Before Tax | Volatile | 463 | 211 | 434 | 458 | 255 | 249 | 1,193 | 350 | 321 | 417 |
| Tax | Strong Uptrend | 124 | 86 | 183 | 101 | 82 | 65 | 176 | 126 | 98 | 87 |
| Net Profit | Volatile | 341 | 134 | 263 | 365 | 183 | 190 | 1,040 | 236 | 227 | 333 |
| Net Margin | Volatile | 5.1% | 2.0% | 4.0% | 5.9% | 3.0% | 3.2% | 17.4% | 4.1% | 4.0% | 6.0% |
Key Takeaways
- Consolidated net profit attributable to equity holders surged 86.3% YoY to ₹341.03 crore in Q2 FY2027, driven by strong operational expansion and lower sequential exceptional charges.
- Consolidated revenue from operations grew 9.6% YoY and 1.6% QoQ to ₹6,687.89 crore, led by robust growth in Data Services and Campaign Registry.
- The Data Services segment expanded 11.7% YoY to ₹5,810.99 crore, while Campaign Registry revenue jumped 37.1% YoY to ₹277.76 crore.
- The Board approved an internal restructuring to transfer its entire shareholding in Kaleyra, Inc., to wholly-owned subsidiary Tata Communications (Netherlands) B.V. to simplify group corporate structure.
- Exceptional items totaled ₹36.54 crore for the quarter, related to staff cost optimization initiatives aimed at improving long-term efficiency.
- DoT license fee demand notices aggregate to ₹7,844.57 crore; the company maintains ₹7,513.71 crore as contingent liability and continues to defend its stance via pending appeals.
Management Guidance
Management is advancing its 'Data Premier' strategy, continuing to prioritize high-margin digital platform services, cloud connectivity, and cyber security to offset structural declines in the legacy wholesale voice segment.
Sentiment Shift
Improving
Net profitability rebounded sharply sequentially (+154% QoQ) after Q1 was weighed down by elevated provisions and exceptional charges, while top-line data growth remained resilient.
Outlook
The company remains on track with strategic transformation initiatives, moving up the value chain from basic connectivity to integrated digital platforms and managed network services despite ongoing regulatory overhang regarding DoT AGR demands.
From the Annual Report (Key Quotes)
“As part of its initiative to enhance the long-term efficiency of the business, the Group is undertaking organisational changes to align its current and prospective business requirements in a phased manner.”
“The proposed transaction is intended to simplify the Company’s existing group structure by consolidating ownership of Kaleyra, Inc. under TCNL, without any change in the ultimate ownership and beneficial economic interest.”
Official Quarterly Documents
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