Tata Communications Q2 profit rises 83 per cent as revenue grows 10 per cent

MUMBAI: Tata Communications has found a stronger signal in its latest quarterly numbers, with consolidated profit after tax climbing 83.2 per cent year on year, even as higher network and transmission costs continued to weigh on its expenses.

The company reported consolidated revenue from operations of Rs 6,687.89 crore for the quarter ended 30 September 2026, up 9.6 per cent from Rs 6,099.75 crore in the corresponding quarter last year. Consolidated profit for the period rose to Rs 335.61 crore from Rs 183.21 crore, according to its unaudited financial results approved on 15 October.

Total consolidated income increased to Rs 6,704.30 crore from Rs 6,082.51 crore a year earlier. Total expenses also rose, reaching Rs 6,204.86 crore against Rs 5,806.87 crore, with network and transmission expenses increasing to Rs 3,181.47 crore from Rs 2,715.35 crore.

The company recorded exceptional costs of Rs 36.54 crore during the quarter, primarily linked to staff cost optimisation. Despite these charges, profit before exceptional items, tax and share in the profit of associates rose to Rs 499.44 crore from Rs 275.64 crore in the year-ago quarter.

Data Services remained Tata Communications’ biggest business segment, generating revenue of Rs 5,810.99 crore during the quarter, up from Rs 5,204.47 crore a year earlier. Segment results increased to Rs 425.74 crore from Rs 313.59 crore.

Campaign Registry, which helps reduce spam by collecting and sharing information on messaging campaigns, reported revenue of Rs 277.76 crore, compared with Rs 202.54 crore in the corresponding quarter last year. Its segment result more than doubled to Rs 162.03 crore from Rs 75.58 crore.

Transformation Services revenue, however, declined to Rs 190.11 crore from Rs 286.74 crore. Voice Solutions revenue also fell to Rs 370.04 crore from Rs 405.96 crore, while Real Estate revenue remained broadly stable at Rs 51.84 crore.

For the six months ended 30 September 2026, consolidated revenue from operations rose to Rs 13,270.71 crore from Rs 12,059.60 crore in the corresponding period last year. Profit after tax from continuing operations increased to Rs 465.33 crore from Rs 415.54 crore.

Profit for the six-month period stood at Rs 465.33 crore, compared with Rs 373.35 crore a year earlier. The previous year’s figure included a loss of Rs 42.19 crore from discontinued operations.

On a standalone basis, revenue from operations rose to Rs 1,854.12 crore in Q2 FY27 from Rs 1,802.60 crore a year earlier. However, standalone profit declined to Rs 125.86 crore from Rs 210.94 crore, reflecting the impact of exceptional items and other expenses.

Alongside its financial results, the board approved the transfer of Tata Communications’ entire shareholding in Kaleyra Inc. to Tata Communications (Netherlands) B.V., a wholly owned subsidiary. In exchange, Tata Communications will subscribe to and acquire ordinary shares of the Netherlands entity at fair market value, determined through an independent valuation.

The company said the restructuring is intended to simplify its group structure by consolidating Kaleyra’s ownership under the Netherlands subsidiary, without changing Tata Communications’ ultimate ownership or beneficial economic interest in Kaleyra and its subsidiaries.

The board also appointed Ridhi Sood as company secretary and compliance officer, effective 1 November 2026.

The unaudited results were reviewed by the audit committee and approved by the board on 15 October 2026. Statutory auditor S.R. Batliboi & Associates LLP issued a limited review report with an unmodified opinion.