Digital Portfolio Revenue Growth
16.7%
+16.7pp YoY
Digital portfolio grew 16.7% YoY, with next-gen connectivity leading at 24% YoY.
TATACOMMUNICATIONS
Other
22 Apr 2026
Tata Communications Limited — Q4 FY26
Tata Communications reported a strong Q4 FY26 with consolidated revenue of ₹6,554 crore (+9.4% YoY) and data revenue growth of 11.5% YoY to ₹5,684 crore.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Tata Communications reported a strong Q4 FY26 with consolidated revenue of ₹6,554 crore (+9.4% YoY) and data revenue growth of 11.5% YoY to ₹5,684 crore. EBITDA grew 14.4% YoY to ₹1,284 crore, though margins contracted 86 bps YoY to 19.6% due to revenue mix shift. Digital portfolio revenue surged 16.7% YoY, led by next-gen connectivity (+24% YoY) and collaboration/CPaaS. Order booking saw double-digit YoY growth, with 70% of the funnel from digital fabric. Management emphasized a shift to profitable growth, targeting digital portfolio breakeven and absolute EBITDA expansion. Key risks include geopolitical headwinds in West Asia impacting events and potential cost pressures, though the company sees AI-driven demand as a long-term tailwind.
Key Numbers
Order Booking Growth
Double-digit
+10%+ YoY
Order booking saw double-digit YoY growth, with strong international order book.
Net Promoter Score (NPS)
83
N/A
Global NPS of 83, India NPS of 95, indicating strong customer satisfaction.
Net Debt to EBITDA
1.99x
-0.01x QoQ
Net debt to EBITDA improved to 1.99x, driven by better working capital management.
Management Guidance
Digital portfolio breakeven targeted at earliest
Management aims to achieve breakeven for the digital portfolio as soon as possible, focusing on profitable growth.
Management guidance marginsFocus on absolute EBITDA growth year-over-year
Priority is to improve absolute EBITDA growth year-over-year, with operating leverage from digital growth.
Management guidance growthData center connectivity opportunity ~$1B by 2030 in India
Expects data center-to-data center connectivity to be a ~$1 billion opportunity in India by 2030, with 4x increase in bandwidth demand.
Management guidance revenueKey Risks
Geopolitical headwinds in West Asia
Events postponed/cancelled (e.g., F1, MotoGP) could impact demand; energy and chip costs being monitored.
medium · management_commentaryRevenue growth partly forex-driven
Analyst noted sharp INR depreciation boosted reported growth; constant currency revenue growth was only 3.8% YoY.
medium · analyst_questionCore connectivity margin softness
Core connectivity margins dipped slightly QoQ; management attributes to normal range but analysts flagged concern.
low · analyst_questionExecution risk in AI strategy
New CEO acknowledges need to enable sales teams and integrate portfolio for AI; early stage with limited proof points.
medium · data_observationNotable Quotes
Customers want us to say yes more often and say yes across the digital portfolio.
Our immediate priority is to focus on growth in profitability.
We are uniquely combining our network backbone, our cloud and security infra and our new commotion AI enabled interaction fabric to pull the programmable infra platform which will power enterprise AI at scale globally.
Frequently Asked Questions
What was Tata Communications's revenue in Q4 FY26?
Tata Communications reported revenue of ₹6,554 Cr in Q4 FY26, representing a +9.4% change compared to the same quarter last year.
What guidance did Tata Communications management give for FY27?
Digital portfolio breakeven targeted at earliest: Management aims to achieve breakeven for the digital portfolio as soon as possible, focusing on profitable growth. Focus on absolute EBITDA growth year-over-year: Priority is to improve absolute EBITDA growth year-over-year, with operating leverage from digital growth. Data center connectivity opportunity ~$1B by 2030 in India: Expects data center-to-data center connectivity to be a ~$1 billion opportunity in India by 2030, with 4x increase in bandwidth demand.
What are the key risks for Tata Communications in FY27?
Key risks include Geopolitical headwinds in West Asia — Events postponed/cancelled (e.g., F1, MotoGP) could impact demand; energy and chip costs being monitored.; Revenue growth partly forex-driven — Analyst noted sharp INR depreciation boosted reported growth; constant currency revenue growth was only 3.8% YoY.; Core connectivity margin softness — Core connectivity margins dipped slightly QoQ; management attributes to normal range but analysts flagged concern.; Execution risk in AI strategy — New CEO acknowledges need to enable sales teams and integrate portfolio for AI; early stage with limited proof points..
Did Tata Communications meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Tata Communications Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.