Tata Communications (TATACOMM) Q1 26/27 earnings summary

Executive summary

• CEO completed 100 days, meeting teams and over 100 global Forbes 2000 customers to shape a customer-centric strategy.

• New organizational structure built around customer success, integrating sales, pre-sales, and marketing globally.

• Gross revenue for Q1 FY2027 rose 10.5% year-over-year to ₹6,583 crore, driven by strong growth in digital and next-gen platforms.

• Leadership team refreshed with key hires in network, infra, interaction, and services to drive next phase of growth.

• Strategic imperative is converting scale into profitable growth, with clear metrics on NPS, employee engagement, and EBITDA.

Financial highlights

• Q1 FY27 consolidated revenue at INR 6,583 crores, up 10.5% YoY; data revenue at INR 5,708 crores, up 11.3% YoY.

• Core connectivity revenue grew 5.7% YoY, highest in 10 quarters; digital portfolio revenue up 17.1% YoY; next-gen platforms up 31.3% YoY.

• EBITDA at INR 1,230 crores, up 8.2% YoY; normalized EBITDA at INR 1,281 crores, margin at 19.4%, normalized EBITDA growth at 12.7% YoY.

• PAT at INR 130 crores, down 43.9% YoY, impacted by provisions and discontinued operations; PAT margin at 2.0%.

• FCF negative INR 443 crores due to working capital seasonality.

Outlook and guidance

• Aspires to deliver double-digit EBITDA growth for FY27, focusing on profitable growth and capital efficiency.

• No specific forward guidance on revenue or EBITDA, but management targets accelerated EBITDA growth through portfolio mix.

• Longer-term revenue and EBITDA targets to be updated at upcoming Investor Day.