The company shares rose 5% despite a 43% YoY profit decline in Q1FY26. Revenue grew 7% YoY, and the company announced strategic moves, including NCD issuance and subsidiary restructuring, while maintaining focus on core data business and global digital transformation.
The shares of the prominent telecom solution provider gained up to 5 percent in today’s trading session despite the company’s net profit plummeting by 82 percent QoQ and 43 percent YoY, respectively, in Q1FY26.
With a market capitalization of Rs 50,634.53 crore, the shares of Tata Communications Ltd were trading at Rs 1,769.10 per share, increasing around 2.16 percent as compared to the previous closing price of Rs 1,731.75 apiece.
Q1FY26 Highlights
The shares of Tata Communications Ltd have seen bullish movement despite reporting negative results in Q1FY26. Revenue decreased by 1 percent on a quarter-on-quarter basis from Rs. 5,990 crore in Q4FY25 to Rs. 5,960 crore in Q1FY26. Further, revenue zoomed by 7 percent year on year, from Rs 5,592 crore in Q1FY25 to Rs 5,960 crore in Q1FY26.
The company’s net profit decreased by 82 percent on a quarter-on-quarter basis, from Rs. 1,041 crore in Q4FY25 to Rs. 190 crore in Q1FY26. Further, net profit decreased significantly by 43 percent year on year from Rs 333 crore in Q1FY25 to Rs 190 crore in Q1FY26.
Further, the Board of Directors approved raising up to ₹1,000 crore through Non-Convertible Debentures (NCDs) via private placement. An internal committee has been authorized to finalize the terms and manage the issuance and allotment process, supporting the company’s funding requirements and future growth initiatives.
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Additionally, the Board approved acquiring 100% equity of step-down subsidiary Solutions Infini Technologies (India) Pvt Ltd from Kaleyra S.P.A. for Rs. 123.6 crore. This intra-group transaction aims to streamline the corporate structure by bringing SI India under direct ownership, without altering ultimate ownership or economic interest.
In FY25, Tata Communications focused on strategic streamlining, divesting TCPSL, monetizing land, restructuring Netfoundry, and boosting TCTS’s profitability. Resource reallocation supports core data business growth. TCTS and TCR showed strong revenue and margin gains. The company retains its 26% STT stake with no immediate change planned.
Tata Communications Limited is a global digital ecosystem enabler. It offers digital transformation of enterprises globally. The Company’s Voice Solutions segment includes international and national long distance voice services. Its Data Services segment includes core and connectivity services, digital platforms, and connected services.
Written by Abhishek Singh
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