Tata Communications Share Price Fall Over 3%; Q1FY27 Profit Drops 29%, Revenue Rises to ₹6,583 Crore

Written by: Team Angel OneUpdated on: 22 Jul 2026, 8:56 pm IST
Tata Communications reported a 29% fall in Q1 FY27 profit, while revenue rose 10% to ₹6,583 crore, supported by digital business growth.
Tata Communications Share Price Fall
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Tata Communications reported consolidated revenue from operations of ₹6,583 crore in the June quarter (Q1 FY27), up 10.45% from ₹5,960 crore in the corresponding quarter last year, as per news reports.  

The growth was supported by higher contribution from its digital portfolio, which continued to expand during the quarter. 

Profit Drops on Higher Costs 

Consolidated net profit fell 29.35% year-on-year to ₹134 crore, compared with ₹189.98 crore in Q1 FY26. The decline came despite higher revenue as the company recorded a one-time expense of ₹106 crore during the quarter.  

Total expenses also increased 10.82% to ₹6,278 crore, broadly in line with revenue growth. 

Digital Portfolio Sees Higher Contribution 

Revenue from Tata Communications' digital portfolio rose 17.1% to ₹2,940 crore, compared with ₹2,510 crore in the year-ago quarter.  

The business includes cloud, cybersecurity, Internet of Things (IoT), media and collaboration services, and remained one of the faster-growing segments in the company's overall portfolio. 

EBITDA Grows, Margin Narrows 

The company reported EBITDA of ₹1,230 crore, an increase of 8.21% from ₹1,137 crore a year earlier. However, the EBITDA margin slipped to 18.69% from 19.07% in the corresponding period last year, reflecting the impact of higher operating costs during the quarter. 

Data Services EBIT Declines Sequentially 

The Data Services business reported a sequential decline in operating performance. EBIT fell to ₹250 crore in Q1 FY27 from ₹347 crore in the March quarter.  

The company did not provide a detailed segment-wise explanation for the decline, but maintained its guidance of achieving double-digit EBITDA growth during the current financial year. 

Management Commentary 

As per the exchange filings, Ganesh Lakshminarayanan, MD and CEO, Tata Communications, said: “We have started the year well with strong growth across both our core and digital portfolios. Normalised EBITDA performance remains strong. We stay on track to deliver double-digit EBITDA growth this year.  

Our focus is on accelerating growth in our network fabric business, expanding our platform revenues, improving digital profitability and strengthening our EBITDA-to-cash conversion. We have the right foundations, a clear roadmap, and a sizeable opportunity ahead.” 

Read MoreBandhan Bank Share Price Falls Over 15% After RoA Guidance Cut! 

Tata Communications Share Price Performance  

As of July 22, 2026, 2:43 pm, Tata Communications share price was trading at ₹1,764.00, down 3.01% from the previous closing price. 

Conclusion 

The company posted double-digit growth in revenue during the June quarter, supported by its digital business. However, higher expenses and a one-time cost weighed on quarterly profit and margins. 

For daily market updates and regular stock market news in Hindi, stay tuned to Angel One's share market news in Hindi. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. 

Published on: Jul 22, 2026, 3:26 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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