Tata Communications Limited disclosed a significant 74.7% decrease in profitability during the fourth quarter of the fiscal year 2026. The company’s consolidated net profit plummeted to Rs 263.25 crore in Q4 FY26, down from Rs 1,040.34 crore in the same period the previous year, as per an exchange filing. Sequentially, the net profit also saw a 28% decline from Rs 364.28 crore in the December quarter (Q3 FY26).
Revenue from operations, however, saw a positive trend, increasing by 9.4% to reach Rs 6,554 crore in the quarter, compared to Rs 5,990 crore in the corresponding period of the previous fiscal year. Despite the drop in bottom line figures, the company witnessed growth in core business earnings.
Operationally, Tata Communications showed improvement, with Earnings before interest, taxes, depreciation, and amortization (EBITDA) rising by 14.4% year-on-year to Rs 1,284 crore from Rs 1,122 crore. The EBITDA margin also expanded to 19.58% from 18.73% in the previous year, as indicated in its regulatory filing.
The company highlighted the reversal of an exceptional item cost of Rs 185.52 crore incurred in the financial year ending March 31, 2024, which impacted comparability. Additionally, the board of directors proposed a final dividend of Rs 17.5 per share for FY26, subject to approval at the upcoming annual general meeting, which may provide some relief to investors.
Tata Communications’ shares closed nearly 1% higher at Rs 1,527 on the NSE on Wednesday before the earnings announcement. However, the stock has faced consistent pressure, witnessing a 16.3% decline in 2026 and a 4.5% fall over the past 12 months.
