Synopsis:
Tata Communications is in focus following its poor financial results. It reported a revenue growth of only 6.5 percent reaching Rs 6,100 crore, whereas on the other hand its net profit plunged by over 19 percent reaching Rs 183 crore.
The shares of this flagship Tata group company is in focus after the company posted disappointing financial results. In this article, we will dive more into the details of its financial performance.
With a market capitalization of Rs 55,518 crore, the shares of Tata Communications Ltd are currently trading at Rs 1,941.70 per share, up by 4 percent from its previous day closing price of Rs 1,872.60 per share. Over the past five years, the stock has delivered a return of 123 percent, outperforming the NIFTY 50’s return of 115 percent.
Also Read: Stock skyrockets 16% after company’s net profit increases 81% YoY
Q2 Highlights
Tata Communications has reported an operating revenue of Rs 6,100 crore in Q2 FY26, a growth of 6.5 percent as compared to Rs 5,728 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew slightly by 2 percent from Rs 5,960 crore.
Regarding its profitability, it reported a net profit of Rs 183 crore in Q2 FY26, a decline of 19 percent as compared to Rs 227 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it declined by 4 percent from Rs 190 crore.
Coming to its expenses front, total expenses grew by 7 percent to Rs 5,807 crore in Q2 FY26 as compared to Rs 5,436 crore in Q2 FY25. Additionally, total expenses grew by 2 percent from its previous quarter figure of Rs 5,665 crore.
In Q2 FY26, the company’s Data Services segment grew strongly by 7.4 percent YoY to Rs 5,204 crore, while Voice Solutions declined slightly by 4.6 percent to Rs 406 crore. Transformation Services remained almost stable at Rs 287 crore, up just 0.1 percent.
Real Estate fell by 13.4 percent to Rs 52 crore, whereas Campaign Registry saw robust growth of 28 percent, reaching Rs 203 crore. Overall, the company’s key segments showed a mixed performance with strong growth in Data Services and Campaign Registry.
Tata Communications is a global telecommunications and digital infrastructure company; it is a provider of voice, data, cloud communications, cybersecurity, the Internet of Things (IoT), and network services.
The company also provides management services for banks, such as ATM deployment and POS solutions. The global organization operates both revenue and service lines in voice, data, payments (payfort), and real estate services both enterprises and service providers.
Written by Satyajeet Mukherjee
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