Tata Communications (TATACOMM) Q4 25/26 earnings summary

Executive summary

• New CEO and CFO designate introduced, emphasizing continuity in strategy and focus on profitable growth.

• Strong customer preference reflected in high NPS scores (83 globally, 95 in India).

• Positioned as a global Comtech player, serving over 50% of Fortune 500 companies, with 60% of revenue from international markets.

• Strategic focus on digitizing back-end operations and enabling AI-led transformation for enterprises.

• Board recommended a final dividend of ₹17.50 per share for FY26.

Financial highlights

• FY26 consolidated revenue: ₹24,803 crore, up 7.3% YoY; Q4 revenue: ₹6,554 crore, up 9.4% YoY.

• Data revenue for FY26: ₹21,352 crore, up 9.4% YoY; digital portfolio revenue increased 16.7% YoY to ₹10,621 crore.

• FY26 EBITDA: ₹4,822 crore, up 5.5% YoY; Q4 EBITDA: ₹1,284 crore, up 14.4% YoY; EBITDA margin 19.4%.

• FY26 PAT: ₹1,044 crore, down 35.8% YoY due to prior year asset sales and discontinued operations.

• FY26 free cash flow: ₹1,474 crore, nearly 4x FY25, driven by tax refunds and improved working capital.

Outlook and guidance

• Focus on profitable growth, digital portfolio break-even, and accelerating high-margin products.

• Continued investment in future growth, especially in AI-driven demand and next-gen connectivity.

• Monitoring geopolitical risks, especially in West Asia, for potential demand and cost impacts.