Profit After Tax (PAT) for the quarter stood at Rs 183 crore, marking a 27% YoY decline from Rs 251 crore reported in Q2 FY25. The PAT margin also dropped to 3%, down 138 basis points (bps) from 4.4% in the corresponding quarter of the previous fiscal year.
The company reported a 6.5% YoY increase in consolidated gross revenue, which came in at Rs 6,100 crore as compared to Rs 5,728 crore in Q2 FY25. Data revenue, a key business vertical for Tata Communications, rose 7.3% YoY to reach Rs 5,179 crore, up from Rs 4,826 crore in the same quarter last year.
EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) increased 3.9% YoY to Rs 1,174 crore versus Rs 1,129 crore in the year-ago quarter. However, the EBITDA margin compressed slightly to 19.2%, down 48 bps from 19.7% in Q2 FY25.
The company also highlighted sequential improvements in its data services vertical, reporting a data EBITDA margin of 18.6%, reflecting a sequential improvement of 140 bps. Growth within the company’s digital portfolio was pegged at 14.9% YoY, further contributing to the overall data revenue expansion.
“We have sustained momentum this quarter, led by healthy double-digit growth in our digital portfolio. The period has also marked some significant wins in government projects, advancing our role in Digital India. Our newly launched products in our strategic bets, including Voice AI and Cloud Networking, are generating significant interest and adoption among our customers, reflecting the strength and relevance of our solutions,” said A.S. Lakshminarayanan, MD and CEO at Tata Communications.After posting the Q2 results, the shares of Tata Communications were trading 3.6% higher at Rs 1,939.15 on the BSE around 2:35 pm.Also read: Waaree Renewable shares crack over 10% in 2 days on profit booking despite robust Q2 earnings
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
as a Reliable and Trusted News Source