Tata Communications Q1 FY27 Consolidated Net Profit Declines 49.9% to Rs. 129.72 crores
RESULTS
▼ Concern Flagged
MEDIUM RISK
📅 Filed on BSE: 22 Jul 2026, 01:12 PM IST · BSE ID: 816bf369-a1b5-4433-a52b-42ac5ae09847
View Original BSE Filing (PDF)
💡
In Simple Terms
Tata Communications' profit fell by half this quarter, despite revenue growth, mainly due to specific one-time charges.
🤖 AI Summary
- Board approved unaudited consolidated financial results for the quarter ended June 30, 2026.
- Profit after tax for the period declined 49.9% sequentially to Rs. 129.72 crores in Q1 FY27.
- Income from operations for Q1 FY27 stood at Rs. 6,582.82 crores, an increase of 10.5% YoY.
- Exceptional items resulted in a loss of Rs. (106.36) crores in Q1 FY27, impacting profitability.
- Data Services segment reported income from operations of Rs. 5,703.58 crores for the quarter.
🔢 Key Numbers — exact figures from BSE filing, not rounded
Income from operations
Rs. 6,582.82 crores
10.5%
Profit after tax for the period/year
Rs. 129.72 crores
-44.1%
Exceptional items gain/(loss)
Rs. (106.36) crores
Basic Earnings per share (Continuing and Discontinued operations)
Rs. 4.71
-29.3%
🏢 How This Affects the Company
Income from operations in Data Services, the largest segment, remained stable sequentially at Rs. 5,703.58 crores in Q1 FY27, suggesting consistent core business performance.
Consolidated Profit after tax decreased to Rs. 129.72 crores in Q1 FY27, down from Rs. 232.33 crores in Q1 FY26, largely influenced by an exceptional loss of Rs. (106.36) crores.
The exceptional items include a staff cost optimization charge of Rs. (44.78) crores and a provision for contractual obligation of Rs. (50.00) crores, indicating ongoing internal adjustments.
The disclosure of an exceptional loss of Rs. (106.36) crores highlights specific one-time charges, which impact current period profitability but may not recur in the same form.
👥 What This Means For Shareholders
✅
Action Required
No immediate action is required from shareholders based on this financial results disclosure.
👤
Who Is Affected
All shareholders are affected by the company's financial performance, specifically the decline in consolidated profit after tax to Rs. 129.72 crores for the quarter.
🔍
Management Signal
The financial results indicate management is undertaking organizational changes, including staff cost optimization, impacting short-term profitability.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Q2 FY27 results — monitor profitability trends and impact of exceptional items.
Details on staff cost optimization — observe its effect on future employee expenses.
Segment-wise performance — assess growth in Data Services and Campaign Registry.
MEDIUM RISK
Significant decline in profit after tax due to exceptional items and increased expenses.
💡 Investor Takeaway
Tata Communications reported a consolidated profit after tax of Rs. 129.72 crores for Q1 FY27, a 44.1% decline from Rs. 232.33 crores in Q1 FY26. Income from operations rose 10.5% to Rs. 6,582.82 crores. Exceptional losses of Rs. (106.36) crores impacted the quarterly results.
⚖️ Strengths & Concerns
✅ Positives
- Consolidated Income from operations increased by 10.5% to Rs. 6,582.82 crores in Q1 FY27 compared to Rs. 5,959.85 crores in Q1 FY26.
- Data Services, the largest segment, maintained strong income from operations at Rs. 5,703.58 crores in Q1 FY27, up 10.7% from Q1 FY26.
⚠️ Concerns
- Consolidated Profit after tax for the period decreased by 44.1% YoY to Rs. 129.72 crores in Q1 FY27 from Rs. 232.33 crores in Q1 FY26.
- Exceptional items resulted in a net loss of Rs. (106.36) crores in Q1 FY27, compared to a loss of Rs. (20.44) crores in Q1 FY26.
📅 Company Track Record
In FY26, Tata Communications reported a PAT fall of 45.8% to Rs. 996.85 crores despite 7.3% revenue growth to Rs. 24,802.72 crores. This was primarily due to exceptional charges and discontinued losses.
Based on publicly available historical data. For context only.
❓ Frequently Asked Questions
What was Tata Communications' consolidated profit after tax in Q1 FY27?
Tata Communications reported a consolidated profit after tax of Rs. 129.72 crores for the quarter ended June 30, 2026.
What was Tata Communications' income from operations in Q1 FY27?
The consolidated income from operations for Tata Communications in Q1 FY27 was Rs. 6,582.82 crores.
What was the impact of exceptional items on Tata Communications' Q1 FY27 results?
Exceptional items resulted in a loss of Rs. (106.36) crores for Tata Communications in Q1 FY27, including staff cost optimization and provision for contractual obligation.
How did the Data Services segment perform in Q1 FY27 for Tata Communications?
The Data Services segment reported an income from operations of Rs. 5,703.58 crores in Q1 FY27, showing growth from Rs. 5,151.72 crores in Q1 FY26.
What was the Basic Earnings per share for Tata Communications in Q1 FY27?
The Basic Earnings per share (Continuing and Discontinued operations) for Tata Communications in Q1 FY27 was Rs. 4.71.
Questions based on this BSE filing only. For information purposes.