Tata Communications (TATACOMM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenues reached ₹6,100 crore, up 6.5% year-on-year, with data revenue up 7.3% and digital portfolio growth at 14.9%.

• EBITDA grew 3.9% year-on-year to ₹1,174 crore, with a margin of 19.2%, while data EBITDA margin improved to 18.6%.

• Profit after tax declined 27% year-on-year to ₹183 crore, with PAT margin at 3.0%.

• Strategic bets in AI, cloud, and digital fabric are gaining traction, with new product launches and customer wins.

• The company launched new products in Voice AI and Cloud Networking, and secured significant government and enterprise contracts.

Financial highlights

• Gross revenue for the quarter was ₹6,100 crore, up from ₹5,728 crore in Q2 FY25.

• Data revenue reached ₹5,179 crore, up from ₹4,826 crore year-on-year.

• EBITDA margin stood at 19.2%, up 17 basis points quarter-on-quarter, but down 48 bps year-on-year.

• Data EBITDA margins improved by 144 basis points quarter-on-quarter to 18.6%.

• PAT margin decreased by 138 bps year-on-year to 3.0%.

Outlook and guidance

• Management expects strategic bets to contribute at least 10% of incremental digital revenues for the year.

• H2 is expected to see revenue acceleration due to back-ended order book conversion.

• Management expects strategic bets in digital and data services to further enhance profitability and margin strength in H2.

• Focus remains on sustaining growth, optimizing capital efficiency, and delivering long-term value.

• Optimism expressed for continued growth in digital and international markets.