TATACOMMNSETata Communications Limited· Telecommunication - ServicesHighNeutral
Announced Wed, 22 Apr · 16:03 IST

Tata Communications Limited has submitted to the Exchange, the financial results for the period ended March 31, 2026.

Related Party TransactionsRevenue Growth 20pctResults View source PDF

TATACOMM · price

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Price reaction · full curve 14 horizons · vs prior close
-0.6%1-day move
₹1527.00
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₹1535.00
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AI summary

Tata Communications reported consolidated income from operations of ₹24,803 crore for FY 2025-26, up 7.3% from ₹23,109 crore in the prior year, driven by growth in Data Services segment (₹21,441 crore, +9.5% YoY). Consolidated PAT declined sharply to ₹997 crore from ₹1,837 crore in the prior year, mainly because FY 2024-25 included large exceptional gains of ₹691 crore from property sales, while FY 2025-26 had net exceptional gains of only ₹98 crore. Excluding exceptional items, underlying business performance improved with operating margin expanding from 8.4% to 9.5%. The Board recommended a dividend of ₹17.50 per share (down from ₹25 per share). Statutory auditors issued an unmodified (clean) opinion. The company also announced appointment of Deloitte as new statutory auditor from FY 2027-28.

Likely market impact

PAT decline of 46% YoY is primarily due to non-recurrence of prior year exceptional gains from property sales. Excluding these, operating performance improved with margin expansion. The dividend reduction may disappoint income-focused investors. The significant related party transaction (sale of Chennai property to associate) warrants attention.