Tata Communications Q2 FY27 Result: Net Profit Rises 86%; Digital Platform Revenue Grows 18.6% YoY
Tata Communications reported a consolidated net profit of ₹341 crore for the July‑September quarter of FY27, an 86% increase from ₹183 crore recorded in the same period last year. Revenue from operations rose 9.6% year‑on‑year to ₹6,688 crore, up from ₹6,100 crore in the corresponding quarter of FY26. Total income for the quarter increased 10% to ₹6,704 crore, compared with ₹6,083 crore YoY. These figures indicate a solid performance across the company’s business segments during the reporting period.
Operating profit, or EBITDA, jumped 21% to ₹1,422 crore from ₹1,174 crore in Q2 FY26, marking the highest EBITDA for the quarter and the fastest growth in the metric. EBITDA margin expanded to 21.26% from 19.24% in the prior year. Ganesh Lakshminarayanan, MD and CEO, noted that the company’s discipline and focus are paying off and that the Unified AI Stack is resonating with customers by bridging enterprise intelligence and action.
For the first half of FY27, net profit increased 27% to ₹475 crore versus ₹373 crore YoY, while revenue from operations grew 10% to ₹13,271 crore from ₹12,060 crore in H1 FY26. Digital platform revenue grew 18.6% YoY in Q2 FY27, and data revenue increased 12.2%. Digital losses were halved compared with the previous quarter, with digital margins at -3.6%. The company cited strong demand for DC‑to‑DC connectivity as a structural growth opportunity.
The Board approved the transfer of the entire shareholding held by the company in Kaleyra, Inc. to Tata Communications (Netherlands) B.V., a wholly‑owned subsidiary. In return, the company will subscribe to and acquire ordinary shares of TCNL at fair market value determined by an independent valuation report. The transaction aims to simplify the group structure by consolidating ownership of Kaleyra, Inc. under TCNL without altering ultimate ownership or beneficial economic interest.
Following the earnings announcement, Tata Communications shares rose 11.19% on the National Stock Exchange to ₹1,844.5 apiece, giving the company a market capitalisation of ₹52,675.27 crore. The results reflect the company’s disciplined focus and the effectiveness of its AI‑driven initiatives, while the restructuring move is expected to streamline operations and governance within the group.