Tata Communications Limited has informed the Exchange about General Updates - Issuance of Non-Convertible Debentures
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Tata Communications reported Q1 FY26 consolidated revenue of ₹5,960 crore, up 6.6% year-on-year, with data revenue growing 9.4% YoY to ₹5,130 crore. However, profit after tax fell to ₹190.14 crore from ₹332.93 crore a year ago, dragged by a ₹42.19 crore loss on a discontinued subsidiary and higher network and employee costs. EBITDA margin was largely flat at 19.1%. The Board approved raising up to ₹1,000 crore via Non-Convertible Debentures on a private placement basis to shore up funds. It also approved acquiring the remaining stake in step-down subsidiary Solutions Infini Technologies (India) for ₹123.6 crore from Kaleyra S.P.A. to simplify the group structure, with no change in ultimate ownership.
Shareholders should note mixed quarterly performance: topline growth was healthy but bottomline declined sharply due to one-time losses and higher operating costs. The proposed ₹1,000 crore NCD issuance will increase debt (current debt-equity already at 0.39), and terms like coupon rate and tenure are yet to be finalized. The intra-group restructuring is largely cosmetic and should not materially affect shareholder value.