Tata Communications (TATACOMM) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 gross revenue rose 9.6% YoY to ₹6,688 crore; EBITDA increased 21.2% to ₹1,422 crore, with margin up 202 bps to 21.3%.

• Digital portfolio revenue grew 18.6% YoY; its margin improved to -3.6% from -6.9% in Q1, with Q2 loss of ₹107 crore.

• AI-led customer wins and data-center connectivity demand supported confidence in growth opportunities and H2 momentum.

• Priorities include absolute EBITDA growth, network expansion, digital profitability, higher platform mix, improved NPS and ESAT, and operational agility.

Financial highlights

• Consolidated operating revenue was ₹6,687.89 crore versus ₹6,099.75 crore YoY; H1 revenue was ₹13,270.71 crore versus ₹12,059.60 crore.

• Data revenue was ₹5,810.99 crore, up 12.2% reported and ~6% after currency normalization; digital portfolio revenue grew 18.6%.

• EBITDA reached ₹1,422 crore, up 21.2% YoY; H1 EBITDA growth was 14.8%.

• Profit for the period was ₹335.61 crore; ₹341.03 crore was attributable to equity holders, versus ₹183.06 crore a year earlier.

• Quarterly free cash flow was ₹212 crore; H1 consolidated operating cash flow was ₹1,562.70 crore versus ₹953.64 crore.

Outlook and guidance

• FY27 commitment: double-digit EBITDA growth and digital portfolio EBITDA-positive as soon as possible; H1 momentum supported confidence entering H2.

• Strong network order-book wins are expected to convert into revenue; management asked investors to allow another quarter for network growth to develop.

• Cloud strategy prioritizes sovereign and proprietary AI platforms, GPU utilization, higher-margin products and strong India cloud order-book momentum.

• Digital profitability focus: revenue growth, improved mix and cost control, with platform, infrastructure and services/solutions as target portfolio components.