The steep decline in profit was largely due to a high base in the year-ago quarter, which had benefited from exceptional gains, including a one-time gain related to a subsidiary transaction. In contrast, the current quarter saw no such gains, leading to a normalization of earnings.
On a sequential basis, profit declined 29% from Rs 364 crore in the December quarter, indicating some pressure on operational performance as well. Profit before tax stood at Rs 434 crore, down from Rs 914 crore a year earlier.
Despite the profit decline, revenue growth remained healthy, driven by higher demand for network and transmission services. Total income for the quarter rose to Rs 6,597 crore, compared with Rs 6,059 crore in the year-ago period.
Network and transmission expenses increased to Rs 3,081 crore, reflecting scale-up in operations, while employee benefit costs rose to Rs 1,240 crore. Other expenses declined on a YoY basis, helping partially offset cost pressures.
Operating profitability remained under pressure, with profit before exceptional items at Rs 414 crore compared to Rs 336 crore a year earlier, but lower than the December quarter. Higher operating costs, along with the absence of one-off gains, weighed on overall margins during the quarter.For the full year FY26, Tata Communications reported revenue from operations of Rs 24,803 crore, up 7% YoY, while profit stood at Rs 997 crore compared with Rs 1,837 crore in FY25, again impacted by exceptional items in the previous year.The board has also recommended a final dividend of Rs 17.5 per share (175%) for FY26. The dividend will be paid after shareholder approval at the upcoming annual general meeting.
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