Tata Communications FY26 Results: Revenue ₹24,803 Cr, Board Recommends ₹17.50 Dividend
Tata Communications reported FY26 revenue of ₹24,803 crore, up 7.3% year-on-year, with data revenue growing 9.4% to ₹21,352 crore and digital portfolio revenue increasing 16.7% to ₹10,621 crore. Q4 FY26 showed strong performance with gross revenue at ₹6,554 crore, up 9.4%, and EBITDA growing 14.4% to ₹1,284 crore. The Board recommended a final dividend of ₹17.50 per share and appointed Deloitte Haskins & Sells as statutory auditor for a five-year term from 2027 to 2032. The company reported contingent liabilities of ₹7,513.71 crore related to DoT demand notices and ₹362.29 crore for ongoing tax litigation.

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Tata Communications has announced its audited financial results for FY26, reporting revenue growth of 7.3% and strong digital portfolio expansion. The Board of Directors, in its meeting held on April 22, 2026, approved the standalone and consolidated audited financial results and recommended a final dividend of ₹17.50 per share (175%) on face value of ₹10 each for FY26.
Financial Performance Overview
The company delivered solid growth across key metrics in Q4 FY26, with data revenue and digital portfolio showing particular strength:
| Metric (₹ Crore): | Q4 FY26 | Q4 FY25 | YoY Growth |
|---|---|---|---|
| Gross Revenue: | 6,554 | 5,990 | 9.4% |
| Data Revenue: | 5,684 | 5,096 | 11.5% |
| Digital Portfolio Revenue: | 2,909 | 2,440 | 19.2% |
| EBITDA: | 1,284 | 1,122 | 14.4% |
| EBITDA Margin: | 19.6% | 18.7% | +86 bps |
| PAT: | 263 | 761 | -65.4% |
| PAT Margin: | 4.0% | 12.7% | -869 bps |
Full Year Performance
For the full financial year FY26, Tata Communications reported comprehensive growth across its business segments:
| Metric (₹ Crore): | FY26 | FY25 | YoY Growth |
|---|---|---|---|
| Gross Revenue: | 24,803 | 23,109 | 7.3% |
| Data Revenue: | 21,352 | 19,513 | 9.4% |
| Digital Portfolio Revenue: | 10,621 | 9,103 | 16.7% |
| EBITDA: | 4,822 | 4,569 | 5.5% |
| EBITDA Margin: | 19.4% | 19.8% | -33 bps |
| PAT: | 1,044 | 1,625 | -35.8% |
| PAT Margin: | 4.2% | 7.0% | -282 bps |
Data revenue crossed the ₹21,000 crore mark, growing 9.4% year-on-year. The digital portfolio revenue grew 16.7% to ₹10,621 crore from ₹9,103 crore in the previous year.
Board Decisions and Corporate Actions
The Board meeting, which commenced at 13:00 hours IST and concluded at 15:35 hours IST, resulted in several key decisions:
| Decision Area: | Details |
|---|---|
| Dividend Recommendation: | ₹17.50 per share (175%) for FY26 |
| Statutory Auditor: | Deloitte Haskins & Sells Chartered Accountants LLP |
| Audit Term: | 5 years (41st AGM 2027 to 46th AGM 2032) |
| Current Auditor Opinion: | S.R. Batliboi & Associates issued unmodified opinion |
Management Changes
The company announced key senior management personnel changes effective from the current period:
| Position: | Name | Effective Date | Action |
|---|---|---|---|
| Executive VP - Interaction Fabric: | Mr. Vivek Manglik | May 4, 2026 | Appointment |
| Head - ESG: | Mr. Mukul Kumar | April 30, 2026 | Retirement |
Balance Sheet and Contingent Liabilities
The company's consolidated total assets stood at ₹28,403.94 crore as of March 31, 2026, compared to ₹26,584.58 crore in the previous year. Total current liabilities increased to ₹14,018.01 crore from ₹12,503.91 crore. The company has disclosed contingent liabilities of ₹7,513.71 crore (net of provision ₹54.18 crore) related to Department of Telecommunications demand notices towards license fee on Adjusted Gross Revenue for financial years ranging from FY 2005-06 to FY 2024-25. Additionally, ₹362.29 crore is disclosed as contingent liability related to ongoing tax litigation in a foreign subsidiary.
How will the significant decline in PAT margins from 7% to 4.2% impact Tata Communications' ability to sustain its high dividend payout ratio in future years?
What strategic initiatives is Tata Communications planning to accelerate digital portfolio growth beyond the current 16.7% rate given increasing competition in the telecom sector?
How might the ₹7,513 crore contingent liability related to DoT's AGR demands affect the company's financial flexibility and capital allocation decisions?

































