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Tata Communications Q1 Results FY27: Net Profit Falls 29.4% to Rs 134.2 Crore Despite Revenue Growth

Tata Communications Q1 FY27: consolidated PAT Rs 134.2 Cr, down 29.4% YoY. Revenue Rs 6,583 Cr, up 10.5%. EBITDA up 8.2% at Rs 1,230.3 Cr, margin 18.7% vs 19.1%. Stock down 4.12% at Rs 1,743.90.


22 Jul 20264:07 pm

Tata Communications Q1 Results FY27: Net Profit Falls 29.4% to Rs 134.2 Crore Despite Revenue Growth

Tata Communications Q1 results FY27 were announced on Wednesday, 22 July 2026, with the company reporting the numbers summarised below on a consolidated basis for the quarter ended 30 June 2026.

Shares of Tata Communications fell 4.12 to Rs 1,743.90 on the NSE on the results day. The Tata group digital infrastructure and enterprise services company saw revenue grow steadily even as the bottom line declined sharply.

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Tata Communications Q1 Results FY27 Key Takeaways

Here are the most important numbers from the June 2026 quarter at a glance.

  • Revenue: Rs 6,583 Cr in Q1 FY27 versus Rs 5,960 Cr in Q1 FY26, up 10.5% year on year.
  • EBITDA: Rs 1,230.3 Cr in Q1 FY27 versus Rs 1,137.2 Cr in Q1 FY26, up 8.2% year on year.
  • Net Profit (PAT): Rs 134.2 Cr in Q1 FY27 versus Rs 190 Cr in Q1 FY26, down 29.4% year on year.
  • Tata Communications share price fell 4.12 to Rs 1,743.90 on the NSE on the results day.

Tata Communications Q1 Results FY27 Financial Highlights

The table below summarises the consolidated numbers reported in the Tata Communications Q1 results FY27 against the year ago quarter.

Metric Q1 FY27 Q1 FY26 YoY Change
Revenue Rs 6,583 Cr Rs 5,960 Cr +10.5%
EBITDA Rs 1,230.3 Cr Rs 1,137.2 Cr +8.2%
Net Profit (PAT) Rs 134.2 Cr Rs 190 Cr -29.4%

All figures are on a consolidated basis as reported for the quarter ended 30 June 2026.

Tata Communications Q1 Results FY27 Performance Analysis

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The Tata Communications Q1 results FY27 show a clear divergence between operating and bottom line performance. Revenue grew 10.5% and EBITDA grew 8.2%, both healthy, while net profit fell 29.4%, pointing to pressure below the EBITDA line such as higher depreciation, interest costs or a less favourable tax position relative to the year ago quarter.

The EBITDA margin also slipped slightly to 18.7% from 19.1% in the Tata Communications Q1 results FY27, a modest compression that does not fully explain the scale of the profit decline, reinforcing that the bigger drag sits below the operating line.

For a digital infrastructure company that has been investing in data centre and network capacity expansion, rising depreciation and finance costs tied to that capex cycle are a plausible explanation, though investors should review the detailed filing to confirm the specific driver.

Tata Communications Q1 Results FY27: Key Business Factors

1. Steady Revenue and EBITDA Growth

Revenue up 10.5% and EBITDA up 8.2% in the Tata Communications Q1 results FY27 confirm continued demand for the company’s digital infrastructure and enterprise services portfolio.

2. Sharp Profit Decline Below the Operating Line

With EBITDA still growing, the 29.4% PAT decline points to higher depreciation, interest costs or tax as the primary drag, consistent with an active capex investment phase.

3. Modest EBITDA Margin Compression

The EBITDA margin slipping to 18.7% from 19.1% in the Tata Communications Q1 results FY27 is a secondary factor, smaller in scale than the bottom line decline.

Dividend Details

Any dividend announcement accompanying the June 2026 quarter results will be reflected in the company’s official NSE and BSE filings. Investors should rely on those filings for dividend confirmation rather than secondary sources.

Tata Communications Q1 Results FY27 Outlook for the Full Year

After the Tata Communications Q1 results FY27, the key question is whether the below-the-line cost pressure is temporary, tied to a specific capex or financing event, or a more structural shift as the company continues investing in digital infrastructure capacity. Margin trends and capex intensity commentary will be important to track through FY27.

Tata Communications Stock Performance After the Q1 Results

Download the Univest iOS App or Univest Android App to track Tata Communications live share price and upcoming quarterly results.

Tata Communications share price fell 4.12 to Rs 1,743.90 on the NSE after the Tata Communications Q1 results FY27, as the market weighed the quarter’s numbers.

Investors can compare the trend of the counter with the Nifty IT index to judge how the stock is placed relative to the broader market after the June quarter results.

Key Risks

Investors going through the fine print of the Tata Communications Q1 results FY27 should also weigh the following risks.

1. Below the Line Cost Pressure

The gap between EBITDA growth and the PAT decline in the Tata Communications Q1 results FY27 needs to be understood via the detailed filing to assess whether it recurs in future quarters.

2. Capex Intensity

Continued investment in digital infrastructure and network capacity implies ongoing depreciation and financing costs that could keep pressuring near term profitability.

3. Currency and Global Enterprise Demand Exposure

As a company with significant international enterprise and connectivity revenue, currency movements and global enterprise IT spending trends remain relevant risks.

Conclusion

Tata Communications Q1 results FY27 show net profit down 29.4% at Rs 134.2 crore despite revenue growing 10.5% and EBITDA growing 8.2%, with the drag concentrated below the operating line. Investors should review the detailed filing for the specific driver and consult a SEBI-registered advisor before acting on the numbers.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

Frequently Asked Questions on Tata Communications Q1 Results FY27

When were the Tata Communications Q1 results FY27 announced?

Ans. The Tata Communications Q1 results FY27 were announced on Wednesday, 22 July 2026, for the quarter ended 30 June 2026, on a consolidated basis.

What is the PAT in the Tata Communications Q1 results FY27?

Ans. The consolidated PAT in the Tata Communications Q1 results FY27 stood at Rs 134.2 crore, down 29.4% from Rs 190 crore in Q1 FY26.

Why did Tata Communications profit fall despite revenue and EBITDA growth in Q1 FY27?

Ans. In the Tata Communications Q1 results FY27, revenue grew 10.5% and EBITDA grew 8.2%, so the 29.4% PAT decline likely stems from higher depreciation, interest costs or tax below the operating line, consistent with the company’s ongoing digital infrastructure capex cycle.

What was the revenue in the Tata Communications Q1 results FY27?

Ans. Revenue in the Tata Communications Q1 results FY27 stood at Rs 6,583 crore, up 10.5% from Rs 5,960 crore in Q1 FY26.

What was the EBITDA margin in the Tata Communications Q1 results FY27?

Ans. The EBITDA margin in the Tata Communications Q1 results FY27 was 18.7%, slightly lower than 19.1% in Q1 FY26, with EBITDA up 8.2% to Rs 1,230.3 crore.

How did the share price react to the Tata Communications Q1 results FY27?

Ans. Tata Communications share price fell 4.12% to Rs 1,743.90 on the NSE after the Tata Communications Q1 results FY27.

Is the stock a good buy after the Tata Communications Q1 results FY27?

Ans. The Tata Communications Q1 results FY27 show healthy operating growth undercut by a sharp bottom line decline, and investors should identify the specific below-the-line cause. This article is for educational purposes only. Consult a SEBI-registered advisor before investing.

Where can I verify the Tata Communications Q1 results FY27?

Ans. The official filings for the June 2026 quarter are available on the NSE and BSE websites, and the stock can be tracked on the Univest app.

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