Tata Communications has outlined plans to achieve double-digit EBITDA growth in FY27, even as the company reported a 10.5% year-on-year increase in consolidated revenue to ₹6,583 crore for the quarter ended June 30, 2026 (Q1 FY27), driven by growth in its digital portfolio. However, consolidated net profit declined 43.9% to ₹130 crore from ₹232 crore in the corresponding period of the previous year, impacted by exceptional items including provisions for accidental damages and contractual obligations.

Financial Performance at a Glance

The following table summarises the key financial metrics for Q1 FY27 on a year-on-year basis:

Revenue Growth and Segment Performance

Tata Communications recorded consolidated revenue of ₹6,583 crore in Q1 FY27, up from ₹5,960 crore in the year-ago period. The Data Services segment, which includes core connectivity and digital platforms, was the primary driver, with revenue rising to ₹5,704 crore from ₹5,152 crore. The Digital Portfolio revenue grew 17.10% year-on-year to ₹2,940 crore. Transformation Services revenue stood at ₹195 crore, while Voice Solutions revenue declined to ₹382 crore from ₹395 crore.

Profitability and Exceptional Items

Consolidated net profit for the quarter stood at ₹130 crore, a decrease from ₹232 crore in the previous year. This decline was attributed to exceptional items totaling ₹106.36 crore, which included a one-time charge of ₹44.78 crore for staff cost optimization, a provision of ₹30.10 crore for accidental damages at a co-located data centre, and a provision of ₹50 crore for contractual obligations. Normalised EBITDA for the quarter was reported at ₹1,281 crore with a margin of 19.40%.

FY27 Growth Outlook

Looking ahead, Tata Communications has stated plans to achieve double-digit EBITDA growth in FY27. The company's focus on expanding its digital portfolio, which posted 17.10% year-on-year growth in Q1 FY27, is expected to remain a key pillar of this growth strategy.

Regulatory Disclosures and Auditor's Report

The Board of Directors approved the financial results on July 22, 2026. M/s. S.R. Batliboi & Associates, LLP, Statutory Auditors, issued a Limited Review Report with an unmodified opinion. The company disclosed that it has received 'Show Cause-cum Demand Notices' from the Department of Telecommunications aggregating to ₹7,844.57 crore, of which ₹7,513.71 crore has been recorded as a contingent liability.

Tata Communications Independent Director Krishnakumar Natarajan ceased to hold office effective July 15, 2026, following the completion of his tenure on July 14, 2026. The Board acknowledged his contributions during his tenure with the company.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed the National Stock Exchange of India Limited and BSE Limited regarding the change in its board composition.

Mr. Natarajan’s departure marks the end of his specific term as an Independent Director. The Board placed on record its appreciation for the significant contributions and guidance provided by him during his association with the company.

The relevant details regarding the cessation are available on the company’s website. The intimation references SEBI Master Circular No. HO/49/14/14(7)2025-CFD POD2/I/3762/2026 dated January 30, 2026.