Tata Communications shares declined by 2.01% to ₹1,722.80 in afternoon trade on Friday, as reported by Moneycontrol. This downward movement from the previous close reflects investor response to recent financial results and ongoing corporate activities. The stock, a constituent of the Nifty Midcap 150 index, experienced this decline following the release of latest financial data showing mixed performance indicators.
The company's consolidated annual revenue reached ₹24,802.72 crore in March 2026, representing a 48.30% increase from ₹16,724.73 crore in March 2022. However, net profit declined significantly by 36.31% to ₹1,006.27 crore in March 2026 from ₹1,583.15 crore in March 2025. As reported by Moneycontrol, the EPS also decreased to 35.14 in March 2026 from 64.44 in March 2025, indicating deteriorating profitability metrics despite revenue growth. The company's PE ratio stands at 38.36 with a PB ratio of 13.63, reflecting current market valuations. The Debt to Equity ratio has shown improvement, declining from 3.60 in March 2025 to 3.07 in March 2026, indicating reduced leverage and improved financial stability.
For the quarter ending June 2026, Tata Communications reported consolidated revenue of ₹6,582.82 crore, showing a marginal increase from ₹6,554.15 crore in the previous quarter (March 2026). However, net profit for the June 2026 quarter significantly decreased to ₹125.37 crore from ₹250.82 crore in the March 2026 quarter. According to the latest financial data, this represents a substantial quarter-over-quarter decline in profitability despite stable revenue performance. The EBIT margin compressed to 6.02% in June 2026 from 9.33% in March 2026, indicating operational challenges. Quarterly revenue has shown a steady upward trajectory, climbing from ₹5,959.85 crore in the quarter-ending June 2025 to ₹6,582.82 crore in the quarter-ending June 2026, marking a rise of approximately 10.45%.
The company's operational efficiency metrics show interest expenses accounting for 3.07% of operating revenues and employee costs representing 19.91% of total expenses for the year ending March 31, 2026. As reported by TickerPlant, the company's total expenses grew by 3.64% to ₹6,198.48 crore in June 2026, while EBIT decreased by 35.48% to ₹397.28 crore. The net profit margin compressed to 2.04% in June 2026 from 3.99% in March 2026, highlighting the impact of rising operational costs on profitability. The company's cash flow from operating activities reached ₹4,479 crore in the year-ending March 2026, showing positive operational performance despite profit challenges.
The company announced a final dividend of ₹17.50 per share (175%) for the year ending March 2026, with an effective date of June 19, 2026. According to Moneycontrol, recent corporate announcements include the intimation of an Analyst/Institutional Investor Meeting on August 7, 2026, and the grant of stock options under the 'Tata Communications Limited - Stock Unit Plan 2023' on July 28, 2026. The company has a history of shareholder-friendly actions, including a bonus issue in a 2:1 ratio on July 28, 2000, with an ex-bonus date of October 26, 2000. Tata Communications is a constituent of the Nifty Midcap 150 index, and the current market sentiment on the stock remains mixed as of August 13, 2026, reflecting the recent decline despite the company's steady revenue growth trajectory.
