Tata Communications (TATACOMM) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenues reached INR 23,109 crore, up 11.2% year-over-year, with digital revenues growing 29.5% and data revenues at INR 19,513 crore, up 13.7%.

• PAT for the year rose 44.7% to INR 1,625 crore, with EBITDA margin at 19.8%.

• Enterprise market segments in India grew 8.7% and international enterprise grew over 20% year-over-year.

• Board recommended a final dividend of INR 25 per share, up from INR 16.7 last year.

• Strategic initiatives included monetisation of land, divestment of Tata Communications Payment Solutions Ltd, and focus on core digital businesses.

Financial highlights

• Q4 FY25 revenue was INR 5,990 crore, up 3.3% sequentially and 6.1% year-over-year; normalized for forex, growth was 2.3% QoQ and 4.1% YoY.

• Q4 data revenue: INR 5,096 crore, up 3.9% QoQ and 9.6% YoY; digital revenues: INR 2,440 crore, up 5.5% QoQ and 17.5% YoY.

• Q4 PAT: INR 761 crore, up 196.5% QoQ, benefiting from INR 578 crore exceptional items (land sale); PAT margin improved to 7.0% from 5.4%.

• Full year EBITDA margin: 19.8%, down 100 bps YoY; core business EBITDA margin at 23.3%.

• Cash flow from operations for FY25 was INR 2,911 crore; net cash used in investing activities was INR 2,179 crore.

Outlook and guidance

• Management remains committed to 23-25% EBITDA margin ambition, expecting margin improvement as acquisitions scale and synergies materialize.

• Order book remains healthy with no cancellations; some deal closures delayed to Q1 FY26 due to customer caution.

• Digital portfolio, especially cloud and security, expected to drive future growth; core connectivity to see revenue from large deals in 2H FY26.

• Focus remains on core and growth capital allocation, with confidence in delivering sustainable long-term value.

• No change in long-term ambition to double data business, though timing may adjust due to macro environment.