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Tata Communications Ltd
| Quarterly Financial Results Q3 FY 2025–26
Summary : Tata Communications reports strong Q3 growth driven by data revenue, margin expansion, and strategic acquisitions, despite ongoing legal challenges.
Quarterly Report Analysis & Insights
Financial Disclosures
- Network and transmission expense
- Employee benefits expense
- Finance costs
- Depreciation and amortisation expense
- Other expenses
- Voice Solutions
- Data Services
- Transformation Services
- Real Estate
- Campaign Registry
- DoT demand notices for license fees: ₹7,513.71 crores.
- VAT assessment and penalty in a subsidiary: ₹354.30 crores.
- Total Segment Assets: ₹27,662.79 crores (Dec 31, 2025).
- Total Segment Liabilities: ₹24,157.69 crores (Dec 31, 2025).
- Paid up equity share capital: ₹285.00 crores.
- Reserves excluding Revaluation reserve: ₹2,530.11 crores.
- Sale of property to an associate company.
- Shareholder approval obtained for material related party transaction.
- Both standalone and consolidated financial results are presented.
Corporate Overview
- Operates in over 190 countries and territories.
- DoT demand notices for license fees.
- Ongoing tax litigation in a subsidiary.
- New Labour Codes provision impact.
- Provides voice, data, payment, transformation services.
- Includes real estate and campaign registry segments.
- Data services include core connectivity and digital platforms.
- Payment solutions cover ATM, POS, core banking, financial inclusion.
- Disciplined focus on data-led growth and margin expansion.
- Gaining momentum with stronger products and sharper execution.
- Well positioned to accelerate next phase of growth.
- Confident in direction and 'Fit to Grow' strategy.
- Serves 300 of Fortune 500 companies.
- Voice Solutions
- Data Services
- Transformation Services
- Real Estate
- Campaign Registry
- Acquired 51% stake in Commotion Inc. for AI-led transformation.
- Investment of ₹89.20 crore in Commotion Inc.
Risk Factors
- DoT demand notices for license fees.
- Ongoing tax litigation in a subsidiary.
- New Labour Codes provision impact.
- Failure to develop new products.
Key Drivers
- Data revenue growth at 9.3% YoY.
- PAT nearly doubled QoQ to ₹365Cr.
- Strategic acquisition of Commotion Inc.
- Strong order book and margin expansion.
Auditor’s Report
- Unmodified opinion on consolidated financial results.
- DoT demand notices for license fees.
- Ongoing tax litigation in a subsidiary.
Board Commentary
- DoT demand notices for license fees.
- Ongoing tax litigation in a subsidiary.
- New Labour Codes provision impact.
- DoT demand notices for license fees (₹7,844.57 crores).
- VAT assessment and penalty in a subsidiary (₹354.30 crores).
- Provision for new Labour Codes (₹60.98 crores).
- Acquisition of 51% stake in Commotion Inc.
- Capital investment of ₹89.20 crore in Commotion Inc.
Management Discussion & Analysis
Future Strategy
- Build sustainably and accelerate next phase of growth.
- Leveraging 'Fit to Grow' strategy for momentum.
Operational Focus Areas
- Disciplined focus on data-led growth.
- Expanding margins and sharper customer execution.
- Strengthening balance sheet through capital efficiency.
Performance Drivers
- Robust order book and margin expansion.
- Data revenue growth at 9.3% YoY.
- Digital Portfolio growth at 15% YoY.
- PAT nearly doubled QoQ to ₹365Cr.
Risk Control Measures
- Company believes it has grounds to defend its position.
- Obtained independent legal opinions for defense.
Critical Risks
- DoT demand notices for license fees (₹7,844.57 crores).
- Ongoing tax litigation in a subsidiary (₹354.30 crores).
- Potential failure to develop new products and services.
- Changes in government policies or regulations.