Tata Communications reported a 75% YoY decline in Q4 net profit to ₹263 crore despite 9.4% revenue growth to ₹6,554 crore. The profit plunge was driven by higher depreciation, tax expenses, and an exceptional item reversal, not operational deterioration. EBITDA actually grew 14.4% with margins expanding to 19.58%. The board declared a ₹17.50 dividend, signaling confidence in cash generation. The company faces near-term headwinds from elevated CAPEX, legacy voice decline, and hyperscaler competition but is pursuing digital transformation, enterprise AI initiatives, and asset monetization to restore profitability.
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