Tata Communications LimitedQ2 FY2027 Results & Financial Update
Tata Communications Limited: Q2 FY2027 consolidated results and company financials – revenue ₹6,687.89 Cr, PAT ₹335.61 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Tata Communications Q2 FY2027 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Tata Communications reported consolidated income from operations of INR 6,687.89 crore for Q2 FY2027, marking a 9.64% increase year-on-year from INR 6,099.75 crore in Q2 FY2026 and a 1.60% rise sequentially from INR 6,582.82 crore in Q1 FY2027.
Profit after tax (PAT) for the quarter rose significantly to INR 335.61 crore, representing an 83.18% increase year-on-year compared to INR 183.21 crore and a 158.72% expansion over INR 129.72 crore reported in the preceding quarter.
Absolute EBITDA improved to INR 1,422 crore, up 21.12% year-on-year from INR 1,174 crore, supported by a 202 basis point expansion in operating margins to 21.3% from 19.2% in the corresponding quarter last year.
Data Services remained the primary revenue engine, contributing INR 5,810.99 crore during the quarter, with digital platform revenue expanding by 18.6% year-on-year to INR 3,016 crore.
Profit before tax (PBT) before exceptional items reached INR 499.44 crore, up from INR 275.64 crore in Q2 FY2025, driven by improved operating efficiencies, cost management, and narrowing digital portfolio losses.
Basic earnings per share (EPS) for continuing operations stood at INR 11.96 for the quarter, compared to INR 6.42 in Q2 FY2026 and INR 4.71 in Q1 FY2027.
The board approved an internal group restructuring to transfer its entire shareholding in Kaleyra, Inc. to its wholly-owned subsidiary, Tata Communications (Netherlands) B.V., simplifying group holdings without altering the ultimate economic interest.
01 · Business model
What does Tata Communications do?
Tata Communications Limited is a leading global communications technology enabler providing digital infrastructure, core and next-generation connectivity, cloud hosting, security solutions, and media services across more than 190 countries and territories.
The company serves a robust enterprise client base, including 300 of Fortune 500 companies, 380 of ET 500 companies, and manages approximately 70% of India's live financial services data traffic.
Operating segments are categorized into Voice Solutions, Data Services, Transformation Services, Real Estate, and Campaign Registry, delivering comprehensive digital transformation, cloud integration, and enterprise communication services.
02 · Historical context
What shaped the business before this quarter
The company entered FY27 having previously incurred substantial digital portfolio losses, recording a digital margin of -9.7% equivalent to a deficit of INR 886 crore in FY25.
On April 22, 2025, an indirect foreign subsidiary issued shares to venture capitalists, resulting in loss of control and subsequent classification under discontinued operations, with the remaining stake sold during the year ended March 31, 2026.
On November 21, 2025, the Government of India implemented new Labour Codes, prompting actuarial revaluations and provisions which were subsequently adjusted in subsequent quarters.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q2 FY2027 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹6,687.89 Cr | ₹6,099.75 Cr | ₹6,582.82 Cr |
| Total income | ₹6,704.30 Cr | ₹6,082.51 Cr | ₹6,595.76 Cr |
| EBITDA | ₹1,422.00 Cr | ₹1,174.00 Cr | ₹1,230.00 Cr |
| Profit before tax | ₹462.90 Cr | ₹254.64 Cr | ₹211.38 Cr |
| Profit after tax | ₹335.61 Cr | ₹183.21 Cr | ₹129.72 Cr |
| EPS | ₹11.96 | ₹6.42 | ₹4.71 |
| EBITDA margin | 21.30% | 19.20% | 18.70% |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Data Services segment revenue reached INR 5,810.99 crore in Q2 FY2027, growing 12.2% year-on-year from INR 5,204.47 crore.
Digital portfolio revenue grew 18.6% year-on-year to reach INR 3,016 crore, driven by strong customer adoption of AI-enabled solutions and connected platforms.
Campaign Registry revenue expanded to INR 277.76 crore from INR 202.54 crore in the corresponding period last year, contributing higher segment results.
What drove margins
Operating margin expanded by 202 basis points year-on-year to 21.3% in Q2 FY2027, up from 19.2% in Q2 FY2026, supported by strict operating discipline and higher platform mix.
Digital portfolio losses halved compared to the previous quarter, registering digital margins at -3.6% (representing a deficit of INR 107 crore) compared to -6.9% in Q1 FY2027.
Employee benefits expense stood at INR 1,178.75 crore during the quarter, moderating from INR 1,269.57 crore in Q2 FY2025 due to ongoing staff cost optimization initiatives.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated revenue of INR 5,810.99 crore with a segment result of INR 425.74 crore, up from INR 313.59 crore in Q2 FY2026.
Recorded revenue of INR 370.04 crore with a segment result of INR 18.13 crore, reflecting continued structural volume contraction in traditional long-distance voice.
Contributed INR 190.11 crore in revenue and INR 47.89 crore in segment results through network management and support operations.
Delivered INR 277.76 crore in revenue and INR 162.03 crore in segment results, reflecting robust demand for messaging spam reduction and regulatory compliance services.
Geography and market mix
The company operates across more than 190 countries and territories, connecting global enterprises to 80% of the world's cloud giants.
06 · Capacity, projects & execution
What is being built, commissioned or delivered
Projects, capex and execution
Invested in GPU infrastructure in India to build a sovereign AI foundation, enabling secure and compliant local data residency for enterprise clients.
07 · Strategy & new businesses
How the company is trying to change its growth mix
Introduced the Unified AI Stack combining secure GPU hardware, enterprise context graphs via Commotion, and omni-channel application deployment to bridge enterprise intelligence and action.
Approved the transfer of 100% shareholding in Kaleyra, Inc. to Tata Communications (Netherlands) B.V. at an aggregate fair market value of USD 92.625 million to simplify group corporate structure.
08 · Reported developments
What changed operationally
Achieved highest absolute EBITDA of INR 1,422 crore with fastest growth of 21.2% year-on-year and margin expansion to 21.3%.
09 · Pressure points & risks
What is not going smoothly
Disclosed INR 7,513.71 crore as contingent liability related to Department of Telecommunications (DoT) Adjusted Gross Revenue (AGR) Show Cause-cum Demand Notices.
10 · Items worth noticing
The line items that can distort a quick read
Incurred an exceptional charge of INR 36.54 crore during the quarter towards staff cost optimization as part of ongoing organizational efficiency initiatives.
11 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Net cash flow from operating activities for the half year ended September 30, 2026, was reported at INR 1,562.70 crore, compared to INR 953.64 crore for the corresponding period in the previous year.
Capital allocation & funding
Total non-current borrowings stood at INR 6,980.16 crore and current borrowings at INR 4,874.38 crore as at September 30, 2026.
12 · Beyond the numbers
What changed beyond the numbers
Reported update
Management Commentary on AI Strategy
MD and CEO Ganesh Lakshminarayanan highlighted that the Unified AI Stack is resonating with customers by bridging enterprise intelligence and action, alongside strong demand for DC-to-DC connectivity.
Reported update
Key Partnerships and Awards
Partnered with Tata Motors Passenger Vehicles for Software-Defined Vehicle connectivity in Sierra.ev and collaborated with Tata Tele Business Services for SMB AI infrastructure.
13 · Previous-quarter changes
What changed since the previous quarter
Operating margin improved sequentially from 18.7% in Q1 FY2027 to 21.3% in Q2 FY2027, alongside PAT growth of 158.7%.
14 · Key Q&A
The quarter, answered directly
What does Tata Communications do?
Tata Communications Limited is a leading global communications technology enabler providing digital infrastructure, core and next-generation connectivity, cloud hosting, security solutions, and media services across more than 190 countries and territories.
What is the clearest takeaway from Q2 FY2027?
Tata Communications reported consolidated income from operations of INR 6,687.89 crore for Q2 FY2027, marking a 9.64% increase year-on-year from INR 6,099.75 crore in Q2 FY2026 and a 1.60% rise sequentially from INR 6,582.82 crore in Q1 FY2027.
What drove revenue or demand?
Data Services segment revenue reached INR 5,810.99 crore in Q2 FY2027, growing 12.2% year-on-year from INR 5,204.47 crore.
What mattered most for margins or profitability?
Operating margin expanded by 202 basis points year-on-year to 21.3% in Q2 FY2027, up from 19.2% in Q2 FY2026, supported by strict operating discipline and higher platform mix.
What changed operationally beyond the headline numbers?
Invested in GPU infrastructure in India to build a sovereign AI foundation, enabling secure and compliant local data residency for enterprise clients.
What are the main pressure points disclosed for the quarter?
Disclosed INR 7,513.71 crore as contingent liability related to Department of Telecommunications (DoT) Adjusted Gross Revenue (AGR) Show Cause-cum Demand Notices.
15 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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16 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Digital Portfolio Breakeven: Monitor the continued reduction of digital portfolio losses toward breakeven from the current -3.6% margin level.
- 02
DC-to-DC Connectivity Growth: Track execution and demand capture in the high-growth data centre-to-data centre connectivity market.
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