Tata Communications

Tata Communications posted a net profit of Rs 183 crore for the second quarter, marking a 27% decline year-on-year amid rising operating expenses and competitive pressures in the global telecom and data services market. Revenue growth was moderated by currency fluctuations, higher network maintenance costs, and investment in digital infrastructure expansion. Analysts highlight that while core enterprise services showed resilience, margin pressures impacted overall profitability. The company continues to focus on cloud, cybersecurity, and managed services as strategic growth drivers.

In the final quarter of FY25, mutual funds increased their holdings across several Tata Group companies, signaling heightened institutional confidence in the conglomerate’s long-term growth potential. Among the notable beneficiaries were Tata Consumer Products, Tata Communications, Trent Ltd, Tata Consultancy Services, and Indian Hotels Company Ltd. These moves reflect a strategic tilt towards diversified sectors such as consumer goods, technology, retail, and hospitality.

Tata Communications has posted a remarkable two-fold increase in its net profit, reaching Rs 761.17 crore for the March quarter, largely driven by one-off gains from the sale of land and stakes in associated businesses. The company’s revenue saw a modest growth of 6.34% to Rs 6,059 crore. Alongside strong profits, Tata Communications plans to ramp up its capital expenditure to over USD 300 million in FY26. Despite narrowing profit margins, the company aims to boost its pre-tax margins to 23-25% over the next two years.