India · Delayed Price · Currency is INR Tata Communications Earnings Call Transcripts
Fiscal Year 2027
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Q1 saw double-digit revenue and EBITDA growth, led by strong performance in core connectivity and digital platforms. The company is focused on profitable growth, capital discipline, and leveraging platform-led solutions, with a refreshed leadership team and robust order book.
Fiscal Year 2026
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Revenue and EBITDA grew strongly year-over-year, led by digital and next-gen connectivity segments. Focus remains on profitable growth, digital portfolio break-even, and leveraging AI-driven demand, while monitoring geopolitical and currency risks.
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Q3 FY26 saw revenue and EBITDA growth, margin expansion, and a strong order book driven by core connectivity and digital segments. Leadership transition and strategic investments in AI and cloud platforms position the company for future growth, despite macro uncertainties.
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Q2 FY26 saw 6.5% year-over-year revenue growth and margin improvements, with digital and international segments driving performance. Strategic investments in AI, cloud, and connectivity are gaining traction, though subsea cable disruptions and one-time costs impacted profitability.
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Q1 FY26 saw 6.6% YoY revenue growth to INR 5,960 crores, with digital revenues up 17.4% and EBITDA margin improving to 19.1%. SAARC region challenges impacted core connectivity, but a strong order book and robust digital portfolio growth support a positive outlook.
Fiscal Year 2025
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The company is executing a strategic transformation to become a digital and AI-driven enterprise partner, with digital revenues now 47% of total and a target of 65% by FY28. New product launches, deeper customer engagement, and multi-fabric deals are driving growth, while financial discipline and capital productivity remain central. Margin expansion and international growth are key priorities.
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Digital revenues grew 29.5% YoY, with strong enterprise and international growth, while Q4 revenue rose 9.6% YoY. EBITDA margin was impacted by one-offs and SAARC provisions, but core margins remain stable. Management remains committed to margin and growth ambitions despite macro uncertainties.
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Q3 FY25 delivered strong digital and international growth, improved margins, and record free cash flow, supported by strategic asset sales and a robust order book. Management remains confident in long-term ambitions, though macro and market headwinds persist.
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Q2 FY25 saw 18.4% year-on-year revenue growth, with digital services up 52.4% and EBITDA up 10%. Asset monetization and strategic investments are expected to improve leverage, while Red Sea cable issues are resolved. Order book rose 25% year-on-year, supporting future growth.
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Q1 FY25 saw 18.1% year-over-year revenue growth, 20% EBITDA margin, and strong digital services momentum. Order book and win rates improved, with the company targeting further margin expansion and data revenue growth despite macro challenges.
Fiscal Year 2024
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Revenue is targeted to double by FY 2027, led by digital portfolio growth, expanded market reach, and investments in AI, cloud, and security. EBITDA margins are guided at 23–25%, with disciplined capital allocation and a focus on organic growth, while acquisitions support strategic gaps.