Tata Communications (TATACOMM) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenue rose 11.2% YoY to INR 23,109 crore, with PAT up 44.7% to INR 1,625 crore and EBITDA margin at 19.8%.

• Digital revenues grew 29.5% YoY, with data revenue up 13.7% to INR 19,513 crore, now nearly 50% of the portfolio.

• India enterprise segment grew 8.7% YoY; international enterprise grew over 20% YoY.

• Board recommended a final dividend of INR 25 per share, up from INR 16.7 last year.

• Strategic initiatives included monetization of land, divestment of Payment Solutions subsidiary, and focus on core digital businesses.

Financial highlights

• Q4 FY25 revenue was INR 5,990 crore, up 3.3% QoQ and 6.1% YoY; Q4 PAT surged 114.8% to INR 761 crore.

• Q4 data revenue: INR 5,096 crore, up 3.9% QoQ and 9.6% YoY; digital revenue: INR 2,440 crore, up 5.5% QoQ and 17.5% YoY.

• FY25 EBITDA was INR 4,569 crore, up 5.8% YoY; full year EBITDA margin: 19.8%, down 100 bps YoY; core business EBITDA margin at 23.3%.

• Free cash flow for the year: INR 306 crore; net debt reduced to INR 9,376 crore; net debt/EBITDA at 2.06x.

• Cash flow from operations for FY25 was INR 2,911 crore; net cash used in investing activities was INR 2,179 crore.

Outlook and guidance

• Management remains committed to 23-25% EBITDA margin ambition, expecting margin improvement as synergies from acquisitions play out.

• Order book remains healthy, with no major deal cancellations; some deal closures delayed to Q1 FY26.

• Digital and cloud/security portfolios expected to drive future growth; core connectivity to benefit from large deals in 2H FY26.

• Focus remains on core and growth capital allocation, with confidence in delivering sustainable long-term value.