Tata Communications profit climbs 86%, shares rise 6.8% on record EBITDA

what happened

Tata Communications reported that its consolidated net profit for the quarter closing on September 30, 2026 reached ₹341.03 crore, a rise of 86.2% from ₹183.06 crore a year earlier, according to Newsmetry API. The board signed off on the figures on Thursday, and the stock gained 6.78% to ₹1,771.30 on the NSE after the release.

Revenue from operations climbed 9.6% to ₹6,687.89 crore, while data revenue advanced 12.2% to ₹5,810.99 crore. EBITDA rose 21.2% to ₹1,422 crore, pushing the margin to 21.3%, 202 basis points higher than a year earlier. The company called this its highest quarterly EBITDA ever. Digital portfolio revenue grew 18.6% to ₹3,016 crore, and digital losses narrowed sharply, with the margin improving to -3.6% from -6.9% in the prior quarter.

The board also approved a restructuring in which the company will move its full holding in the US-based Kaleyra, Inc. to Tata Communications (Netherlands) B.V., a wholly owned subsidiary. The company says this simplifies the group and leaves the ultimate ownership and economic interest in Kaleyra unchanged. MD and CEO Ganesh Lakshminarayanan cited "improved profitability across the business" and pointed to demand for data-centre-to-data-centre connectivity as a growth driver in the second half.

why it matters

For investors, the key takeaway is the margin gain, even though standalone profit fell to ₹125.86 crore from ₹210.94 crore. A separate risk remains: Department of Telecommunications demand notices totalling ₹7,844.57 crore, of which ₹7,513.71 crore is disclosed as contingent liability. The company believes its licenses fall outside the Supreme Court's 2019 AGR judgment and plans to contest the matter before the Supreme Court and TDSAT.

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