Tata Communications Q4 FY26: Profit -75%, ₹17.5 dividend

What Tata Communications reported for Q4 FY26

Tata Communications announced its consolidated results for the March quarter of FY26 on April 22. The company reported a sharp year-on-year decline in profit attributable to equity holders, while revenue and operating metrics improved. The board also recommended a final dividend for FY26, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The stock finished the session higher on the NSE ahead of the results.

Profit drops sharply, even as topline grows

Consolidated net profit attributable to equity holders fell 74.7% year-on-year to ₹263.25 crore in Q4 FY26. In the same quarter last year (Q4 FY25), the company had reported ₹1,040.34 crore. On the revenue line, Tata Communications posted revenue from operations of ₹6,554.15 crore, up 9.41% YoY from ₹5,990.35 crore.

The operating picture, as captured by EBITDA, was stronger than the profit trend. EBITDA rose 14.4% YoY to ₹1,284 crore in Q4 FY26 from ₹1,122 crore in Q4 FY25. The EBITDA margin expanded to 19.58% from 18.73% a year earlier.

Dividend announcement and what happens next

The board of Tata Communications recommended a final dividend of ₹17.50 per equity share for FY26. The company described this as a 175% dividend on a face value of ₹10 per share. The dividend will be paid to eligible shareholders if it is approved at the ensuing AGM, after which the company will proceed with the payout.

Stock move on results day

Shares of Tata Communications closed 0.90% higher at ₹1,527 on the NSE on Wednesday, ahead of the earnings announcement. The move came on a day when the broader Nifty index fell 0.81%, as cited in the report. The stock’s longer-period performance mentioned in the same report showed the shares were down 16.3% year-to-date and down 4.5% over the last 12 months.

Exceptional item reversal disclosed

The company also disclosed that it reversed the exceptional item cost of ₹185.52 crore that it had paid in the year ended March 31, 2024. The filing reference was cited alongside the quarterly numbers, though the report did not detail how this interacted with the quarter’s profit decline.

FY26 snapshot: total income and annual profit

Beyond the quarter, the company reported totals for the financial year ended March 31, 2026. Tata Communications recorded total income of ₹25,104.45 crore for FY26, compared with ₹23,238.89 crore in the previous fiscal year. Consolidated net profit for FY26 was reported at ₹996.85 crore.

The report also highlighted the scale of the data-led business in the full year. Data Services recorded annual revenue of ₹21,440.61 crore. Separately, the report text stated that digital revenue grew 19.2%, and data revenue grew 11.5%, with full-year data revenue crossing ₹21,000 crore.

Leadership and governance updates mentioned alongside results

The company noted leadership changes as part of its broader updates for FY26. Tata Communications named Vivek Manglik as Executive Vice President – Interaction Fabric. It also said Deloitte Haskins & Sells Chartered Accountants LLP was recommended as the new statutory auditor for a five-year term starting in 2027, beginning from the 2027 AGM.

Key numbers at a glance

Market impact and why investors will track operating metrics closely

The numbers underline a mixed quarter: revenue growth and margin expansion, but a steep fall in reported profit compared to a high base in Q4 FY25. Investors often track whether EBITDA growth and margin expansion translate into steadier profit delivery over time, especially when bottom-line volatility is high. The board’s recommended dividend of ₹17.50 per share also becomes a near-term event marker, because it depends on shareholder approval at the AGM.

For the market, FY26 total income of ₹25,104.45 crore and Data Services revenue of ₹21,440.61 crore help contextualise the business scale behind the quarterly prints. Alongside financials, governance disclosures such as the proposed auditor appointment (from 2027) and leadership changes provide additional reference points for shareholders.

Conclusion

Tata Communications ended Q4 FY26 with higher revenue, stronger EBITDA, and an improved EBITDA margin, but a 74.7% YoY drop in net profit to ₹263.25 crore. The company also recommended a final dividend of ₹17.50 per share, pending AGM approval. Investors will watch the AGM outcome for the dividend and any further clarity the company provides around items influencing profit comparability.