Tata Communications Q2 FY2026 Data EBITDA Margins Improve, Digital Portfolio Grows

Tata Communications announced its Q2 FY2026 results, showcasing a 6.5% YoY increase in consolidated revenues, reaching INR 6,100 crore. Data revenue grew by 7.3% YoY, with the digital portfolio expanding by 14.9%. The company also reported a sequential improvement of 140 bps in Data EBITDA margin, reaching 18.6%. Key government project wins and strategic product launches contributed to the sustained momentum.

Financial Performance Highlights

Tata Communications reported a strong financial performance for Q2 FY2026, with key highlights including:

  • Consolidated revenues of INR 6,100 crore, a 6.5% YoY increase.
  • Data revenue growth of 7.3% YoY.
  • Digital portfolio growth of 14.9%.
  • Data EBITDA Margin reaching 18.6%, an improvement of 140 bps sequentially.

Business Segment Performance

The company’s performance across various business segments included:

  • Voice Solutions revenue: ₹17.06 crore
  • Data Services revenue: ₹1,724.69 crore
  • Real Estate revenue: ₹60.85 crore

Key Developments and Strategic Focus

Tata Communications continues to focus on digital transformation and strategic initiatives. Recent key developments include:

  • Launch of a Voice Al Platform to transform BFSI customer journeys.
  • Driving the pan-India launch of BSNL eSIM services.
  • Powering India’s GST Ecosystem with a Digital Fabric of Solutions.
  • Collaboration with Cisco to advance eSIM and IoT connectivity.

Exceptional Items

The financial results include the following exceptional items:

  • Gain on sale of assets held for sale: ₹77.26 crore
  • Staff cost optimisation: ₹-2.35 crore

Leadership Commentary

A.S. Lakshminarayanan, MD and CEO, stated that the company sustained momentum led by double-digit growth in the digital portfolio and significant wins in government projects.

Additional Financial Details

Other key financial details include:

  • Earnings per share (Basic): ₹7.40
  • Total Equity: ₹2,851.35

Analyst Call

The unaudited standalone and consolidated results were reviewed by the audit committee and approved by the Board of Directors at their meeting on October 15, 2025. A call with analysts is expected to follow.

Source: BSE

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