Tata Communications stock: Q2 profit rises as margins expand
Published on 11/02/2026 at 00:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProfitability strengthened in Q2
- Revenue growth accelerated in Tata Communications' data and digital platform businesses.
- Digital losses narrowed from the previous quarter as management entered the second half with stronger momentum.
- AI-led services and data-centre connectivity remain central to the company's growth strategy.
Tata Communications reported a sharp improvement in profitability for the quarter ended September 30, 2026. In its October 15 press release, the company said profit after tax attributable to shareholders rose 86.2 percent year over year to 341 crore Indian rupees.
Digital growth lifted operating leverage
Gross revenue increased 9.6 percent year over year to 6,688 crore Indian rupees. Data revenue rose 12.2 percent to 5,810 crore, while digital platform revenue climbed 18.6 percent to 3,016 crore.
EBITDA grew 21.2 percent to 1,422 crore, outpacing revenue growth. The EBITDA margin expanded to 21.3 percent from 19.2 percent a year earlier, a gain of 202 basis points. The company said its digital losses halved from the previous quarter, with the digital margin at negative 3.6 percent.
AI and connectivity shape the outlook
Chief Executive Ganesh Lakshminarayanan said demand for data-centre-to-data-centre connectivity remains a structural opportunity. He also pointed to the company's Unified AI Stack as it seeks to connect enterprise intelligence with operational use cases.
The comments frame the second half of fiscal 2027 around growth in higher-value digital services and network solutions. For investors, the key execution issue is whether stronger digital revenue can continue to improve profitability while the company invests in infrastructure and new products.
Business model and market position
Tata Communications is part of the Tata Group and provides connectivity, collaboration, cloud hosting, security and media services. The company describes itself as a global digital ecosystem enabler serving customers in more than 190 countries and territories. Its portfolio spans core and next-generation connectivity as well as digital transformation services for enterprises.
Indian equities remain the relevant broader market context for Tata Communications stock. More news and analyses on Tata Communications stock.
Tata Communications at a glance
- Reporting period: Quarter ended September 30, 2026
- Gross revenue: 6,688 crore Indian rupees
- Data revenue: 5,810 crore Indian rupees
- Digital platform revenue: 3,016 crore Indian rupees
- EBITDA: 1,422 crore Indian rupees
- EBITDA margin: 21.3 percent
- Profit after tax attributable to shareholders: 341 crore Indian rupees
Indian equities remain the relevant broader market context for Tata Communications stock. Current market reports.
