Tata Communications FY26 Results: Revenue ₹24,803 Cr, Board Recommends ₹17.50 Dividend

2 min read     Updated on 23 Apr 2026, 05:43 AM
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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?

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Tata Communications Recommends Final Dividend of ₹17.50 Per Share

0 min read     Updated on 22 Apr 2026, 06:11 PM
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Reviewed by
Radhika SScanX News Team
AI Summary

Tata Communications has recommended a final dividend of ₹17.50 per share for its shareholders. The dividend recommendation is subject to shareholder approval and represents the company's commitment to returning value to equity holders. Further details regarding payment timelines and eligibility dates are expected following the formal approval process.

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Tata Communications has recommended a final dividend of ₹17.50 per share for its shareholders. This announcement represents a significant corporate action by the telecommunications services company, demonstrating its commitment to returning value to equity holders.

Dividend Details

The company's board has put forward the recommendation for shareholders' consideration and approval. The dividend payment, subject to shareholder approval, will provide direct returns to investors who hold shares in the telecommunications major.

Parameter: Details
Dividend Type: Final Dividend
Amount Per Share: ₹17.50
Status: Recommended by Board

Corporate Action Significance

The dividend recommendation reflects the company's financial position and its approach to shareholder value creation. Final dividends typically require approval at the company's annual general meeting before they can be distributed to eligible shareholders.

Shareholders will need to await further details regarding the record date, ex-dividend date, and payment timeline, which are typically announced following board approval and subsequent shareholder ratification of the dividend proposal.

How will this dividend payout impact Tata Communications' cash flow and capital allocation strategy for upcoming infrastructure investments?

What factors could influence shareholder approval of this dividend at the upcoming AGM, and what are the potential alternatives if rejected?

How does this ₹17.50 dividend compare to Tata Communications' historical dividend patterns and peer companies in the telecom sector?

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