New Delhi, July 22 (IANS) Tata Communications Limited on Wednesday reported a 29 per cent dip in net profit for Q1 FY27, while revenue from operations rose 10 per cent to Rs 6,583 crore from Rs 5,960 crore a year earlier.
The company incurred a one‑time cost of Rs 106 crore in the quarter linked to actuarial provisions as the government in November 21, 2025 changed the legal definition of “wages” under India’s labour codes, according to an exchange filing.
Tata Communications said it had earlier recognised a provision of Rs 60.58 crore for gratuity and long‑term compensated absences for FY26, and then reversed Rs 18.52 crore of that provision in the June quarter after revising actuarial estimates.
The firm’s total expenses increased 10.82 per cent to Rs 6,278 crore in the quarter on a YoY basis.
At an operational level, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 1,230 crore for the quarter, up 8.21 per cent YoY.
Tata Communications’ EBITDA margin stood at 18.7 per cent in Q1 FY27 compared to 19 per cent in the corresponding period of FY26.
The firm’s digital portfolio revenue grew 17.1 per cent to Rs 2,940 crore in the April-June quarter of the reporting quarter as against Rs 2,510 crore in the June quarter of the fiscal year 2026.
“We have started the year well with strong growth across both our core and digital portfolios. Normalised EBITDA performance remains strong. We stay on track to deliver double-digit EBITDA growth this year,” said Ganesh Lakshminarayanan, MD and CEO, Tata Communications.
Ganesh said the company remains focused on accelerating growth in network fabric business, expanding platform revenues, improving digital profitability and strengthening EBITDA-to-cash conversion.
Tata Communications shares closed 1.1 per cent lower at Rs 1,798 apiece after earlier slipping nearly 6 per cent in the session.
—IANS
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