Tata Communications reported a 19.39% year-on-year decline in its consolidated net profit to Rs 183.21 crore in the second quarter of FY26. In the same quarter of the previous year, the company had reported a net profit of Rs 227.27 crore. The company’s revenue increased by 6.49% year-on-year to Rs 6,100 crore, from Rs 5,727.85 crore in Q2FY25.
On a sequential basis, the company’s net profit declined by 3.7% from Rs 190.14 crore in Q1FY26, while revenue rose by 2.3% from Rs 5,959.85 crore in the previous quarter.
The company’s EBITDA increased by 3.2% sequentially to Rs 1,174 crore, compared to Rs 1,137 crore in the previous quarter. The EBITDA margin remained flat at 19% on a quarter-on-quarter basis.
Tata Comm bets on cloud, cybersecurity and AI
Tata Communications has been shifting away from its legacy network services business, which faces pricing and operational challenges, toward expanding digital infrastructure and services—including cloud connectivity, cybersecurity, IoT, and communication platforms—to build new revenue streams.
“Our newly launched products in our strategic bets, including Voice AI and cloud networking, are generating significant interest and adoption among our customers,” Tata Communications CEO A.S. Lakshminarayanan said according to Reuters.
Tata Comm targets Rs 28,000 crore data business revenue by FY28
The firm, which offers data connections and cybersecurity to enterprises, aims to grow its data business revenue to Rs 28,000 crore by fiscal 2028, driven by digital services that management expects will boost future revenue and margins. Revenue from the data services business rose 7.4% during the quarter, pushing up its overall revenue by 6.5% to Rs 6,100 crore.