Tata Communications Q4 FY26: Profit down, ₹17.5 dividend

What Tata Communications reported for Q4 FY26

Tata Communications announced its consolidated financial results for the quarter ended March 31, 2026, alongside full-year FY26 numbers. The company highlighted double-digit growth in data revenue and faster growth in its digital portfolio. It also said the digital portfolio crossed 50% of the data portfolio for the first time, pointing to a shift in its revenue mix. The board recommended a final dividend of ₹17.50 per equity share for FY26. The results and dividend recommendation were disclosed through company updates and exchange-related reporting on April 22, 2026.

Q4 FY26: Revenue growth, but a sharp drop in profit

For Q4 FY26, Tata Communications reported gross revenue of ₹6,554 crore, up from ₹5,990 crore in Q4 FY25, reflecting 9.4% year-on-year growth. Data revenue rose to ₹5,684 crore from ₹5,096 crore, up 11.5% YoY. Digital portfolio revenue increased to ₹2,909 crore from ₹2,440 crore, a 19.2% YoY rise. EBITDA grew to ₹1,284 crore from ₹1,122 crore, up 14.4% YoY, showing stronger operating performance despite a mixed bottom line.

Reported profit numbers for the quarter were materially lower. In the consolidated financial highlights table shared in the provided data, PAT for Q4 FY26 is shown at ₹263 crore versus ₹761 crore in Q4 FY25, a 65.4% decline. Separately, exchange-filing based reporting cited net profit of ₹263.25 crore compared with ₹1,040.34 crore in the year-ago period, implying a steeper 74.7% fall. Both figures point to a weak quarterly profit outcome despite higher revenue and EBITDA.

EBITDA margin: Improvement in the quarter

Operating margin was reported to have improved year-on-year in market reporting, with EBITDA margin at 19.58% in Q4 FY26 versus 18.73% in Q4 FY25. This indicates better operating leverage in the quarter even as profit after tax declined sharply. In the company’s FY26 table, full-year EBITDA margin was listed at 19.4% versus 19.8% in FY25, a 33 bps decline. The combination suggests that quarterly efficiency improved, while full-year margin was slightly lower.

Digital portfolio crosses 50% of data portfolio

The company’s communication noted “strong double digit growth in digital revenues” and said the digital portfolio crossed 50% of the data portfolio for the first time. Q4 digital portfolio revenue of ₹2,909 crore made up a large portion of Q4 data revenue of ₹5,684 crore, consistent with the company’s comment on mix shift. Management also pointed to increasing customer interest in “NextGen connectivity platforms,” which it linked to the digital portfolio driving overall data growth.

Ganesh Lakshminarayanan, MD and CEO-designate, said Q4 was a strong quarter with the digital portfolio continuing to drive data growth. The company also stated that its balance sheet strengthened, with net debt-to-EBITDA improving to below 2x. The disclosure did not provide an exact net debt figure in the provided text, but highlighted the leverage improvement as a financial milestone.

Full-year FY26: Data revenue crosses ₹21,000 crore

For FY26, Tata Communications reported gross revenue of ₹24,803 crore versus ₹23,109 crore in FY25, a 7.3% YoY rise. Data revenue rose to ₹21,352 crore from ₹19,513 crore, up 9.4% YoY, and the company explicitly flagged that data revenue crossed the ₹21,000 crore mark. Digital portfolio revenue was reported at ₹10,621 crore versus ₹9,103 crore, up 16.7% YoY. EBITDA was ₹4,822 crore versus ₹4,569 crore, a 5.5% increase.

Full-year profitability, however, was lower in the same table, with PAT at ₹1,044 crore in FY26 versus ₹1,625 crore in FY25, down 35.8%. Another disclosure in the provided text cited total income of ₹25,104.45 crore for FY26 (versus ₹23,238.89 crore) and profit for the period of ₹996.85 crore. These numbers are presented as part of separate reporting within the provided material and show broadly similar direction: revenue higher, profit lower.

Dividend: ₹17.50 per share proposed for FY26

Tata Communications’ board recommended a final dividend of ₹17.50 per equity share for FY26. Reporting in the provided text also described this as a 175% dividend on a face value of ₹10 per share. The company stated that the dividend, if approved at the ensuing Annual General Meeting, will be paid to eligible shareholders thereafter. No record date or payment date was provided in the text shared.

Exceptional item reference disclosed in reporting

Exchange-related reporting in the provided material noted that Tata Communications reversed an exceptional item cost of ₹185.52 crore that it paid in the year ended March 31, 2024. The same set of reporting also referenced that Q4 FY25 profit was influenced by one-off items in prior periods, with another source noting exceptional item income in Q4 FY25 and a much smaller exceptional item income in Q4 FY26. The key takeaway from the provided data is that quarterly profit comparisons are affected by exceptional items and their reversals.

Stock market reaction: Modest gain, but weak longer-term trend

Tata Communications shares closed about 0.90% higher at ₹1,527 on the NSE on the day of the earnings announcement, according to the provided reports. This move was noted as outperforming the Nifty on that day, which was reported to have declined by 0.81%. However, the stock’s recent trend in the same material remained weak, with year-to-date performance down 16.3% and down 4.5% over the last 12 months.

Key numbers at a glance

Leadership and governance updates mentioned alongside results

Alongside the FY26 performance update, the provided text referenced leadership and governance changes. It stated that Mr. Vivek Manglik was appointed Executive Vice President. It also said Deloitte Haskins & Sells was confirmed as the new statutory auditor starting from the 2027 AGM. These updates came in the same set of disclosures as the dividend recommendation and annual performance summary.

Why the results matter for investors

The FY26 numbers underline a clear operating narrative in the provided data: data revenue growth remained healthy, and the digital portfolio grew faster than the overall data segment. That mix shift matters because the company itself positioned the digital portfolio as the key driver of data growth and said it has crossed 50% of the data portfolio. At the same time, the sharp decline in PAT in Q4 and for FY26 highlights that profit outcomes can diverge from revenue growth, especially when exceptional items are part of year-on-year comparisons. For investors, the relevant verified markers in the text are the ₹21,352 crore annual data revenue, the 16.7% annual digital portfolio growth, the Q4 EBITDA expansion to ₹1,284 crore, and the proposed ₹17.50 per share final dividend.

Conclusion

Tata Communications closed FY26 with higher revenue and EBITDA, supported by faster growth in its digital portfolio and data services, while profit fell sharply in Q4 and over the full year. The company also proposed a ₹17.50 per share final dividend, subject to shareholder approval at the upcoming AGM. Investors will likely track the company’s next updates around dividend approval, the evolving digital-to-data revenue mix, and the sustainability of operating margin improvements highlighted for the March quarter.