India · Delayed Price · Currency is INR Tata Communications Earnings Call Transcripts
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-on-year revenue growth and improved EBITDA margins, driven by strong digital and international performance. Strategic bets in AI and cloud are gaining traction, with management optimistic about H2 acceleration and continued digital growth.
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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 shift to a digital platform model, with digital revenues now 47% of total and ambitious targets for INR 28,000 crores in data revenues by FY28, 65% from digital. Growth is driven by multi-fabric solutions, AI-enabled offerings, and disciplined capital allocation, despite industry headwinds and competitive pressures.
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Digital revenues grew 29.5% YoY, with strong gains in cloud, security, and IoT segments. Q4 and full-year margins were impacted by one-offs and SAARC provisions, but core EBITDA margin remained stable. Management remains committed to margin improvement and growth, supported by ongoing cost synergies and asset monetization.
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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% YoY revenue growth, strong digital portfolio expansion, and improved order bookings, though EBITDA margin dipped to 19.4% due to cable repair costs. Asset monetization and strategic investments are set to support future growth and reduce leverage.
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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.