Tata Communications Q4 net profit jumps 340% q-o-q
On an annual basis, profits went up 223 per cent, with a 643-bps jump in margins to 12.7 per cent and operational revenue increased 6.1 per cent.
Tata Communications profits jumped up 340 per cent sequentially to ₹1,040 crore, led by large deal wins and growth in digital revenues, in the quarter ended March 31, 2025. Company leaders also attributed the jump to the disposal of the ATM business, leading to a gain of about ₹311 crore and a land parcel that led to a profit of about ₹660 crore.
Revenue from operations grew 3.3 per cent to ₹5,990 crore, largely led by data services and voice solutions segments.
On an annual basis, profits went up 223 per cent, with a 643-bps jump in margins to 12.7 per cent and operational revenue increased 6.1 per cent.
Commenting on the results, AS Lakshminarayanan, MD and CEO, Tata Communications, said: “FY25 was a year of sustained growth despite challenging global macroeconomic conditions, especially with large deal wins and increased adoption of our Digital Fabric. Our continued investments across the full stack of our Digital Fabric — Network, Cloud, Security, IoT, and our Interaction Fabric —are now translating into stronger customer relevance and high double-digit growth of Digital revenues. Today, digital revenues comprise nearly 50 per cent of our portfolio. This is a solid foundation to accelerate our growth in the medium term.”
The company’s EBITDA increased 4.3 per cent on-year to ₹1,122 crore and EBITDA margins grew 33 bps to 18.7 per cent. For FY25, consolidated revenues rose 11.2 per cent, coming in at ₹23,109 crore with profit increasing by 44.7 per cent and EBITDA margins for full year at 19.8 per cent.
Kabir Ahmed Shakir, Chief Financial Officer, Tata Communications, said: “Over the last fiscal, we executed key strategic initiatives — including the monetisation of land parcels and strategic review of non-core assets and subsidiaries — to streamline our portfolio. These actions sharpen our capital allocation and help us prioritise investments in core businesses. This allows us to enter FY26 with focus on core and growth capital to invest.”
Potential delay
Speaking about the impact of the global economic slowdown with businessline, Shakir said he did not expect a direct impact but anticipated a potential delay from clients in terms of digital spends.
Delayed decision-making from the customers’ side is quite often in the infrastructure space because these are not urgent spends, but important spends. If they are a quarter later it doesn’t really matter for people. I would wait for the dust to settle,” said Shakir.
The company’s EBITDA margins declined 33bps on an annual basis and 100 bps in terms of the full FY25 year comparison. Shakir said mixed growth rates of different business segments, uncertainty in the SAARC region, costs on some asset retirement obligations like cable system were largely responsible for the decline.
Published on April 22, 2025
