Tata Communications Ltd recently unveiled its impressive financial results for the fourth quarter of the fiscal year, showcasing a substantial profit of ₹1,040.51 crore. This marks an astonishing 223.62% increase compared to ₹321.52 crore from the same quarter last year. The company’s revenue from operations soared to ₹5,990.35 crore, reflecting a 6.12% rise from ₹5,645.07 crore in the previous year’s fourth quarter. The EBITDA for this period reached ₹1,122.1 crore, an increase of 4.2% year-over-year.
Strong Financial Performance
Tata Communications reported a total income of ₹6,059.15 crore for the quarter, while total expenses amounted to ₹5,723.20 crore. This financial robustness illustrates the company’s effective management and strategic growth initiatives.
- Profit: ₹1,040.51 crore
- Revenue from Operations: ₹5,990.35 crore
- EBITDA: ₹1,122.1 crore
- Total Income: ₹6,059.15 crore
- Total Expenses: ₹5,723.20 crore
Dividend Announcement
In a move to reward shareholders, the board has proposed a final dividend of ₹25 per share, translating to a 250% payout based on a face value of ₹10 each, for the financial year ending March 31, 2025. If approved during the upcoming Annual General Meeting, this dividend will be distributed to eligible shareholders.
Continuous Growth in Data Revenue
During this quarter, Tata Communications witnessed its data revenue exceed the ₹19,000 crore milestone, achieving a 13.7% growth on a full-year basis. This surge underscores the increasing demand for robust digital solutions in the current market.
Leadership Insights
AS Lakshminarayanan, the Managing Director and CEO of Tata Communications, remarked, “The fiscal year 2025 has been marked by consistent growth, even amidst challenging global economic conditions. Our significant deal acquisitions and the growing acceptance of our Digital Fabric offerings have played a crucial role in this success.” He emphasized that investments across various digital segments—such as Network, Cloud, Security, IoT, and Interaction Fabric—are significantly enhancing customer engagement and driving double-digit growth in digital revenues.
Lakshminarayanan noted, “Digital revenues now represent nearly 50% of our overall portfolio, showcasing the effectiveness of our strategic vision and execution. Our unique product offerings have garnered attention from industry analysts, positioning us as leaders in multiple sectors, which sets a solid groundwork for future growth.”
Kabir Ahmed Shakir, the Chief Financial Officer, added, “Throughout the past fiscal year, we implemented strategic initiatives like monetizing land assets and reviewing non-core subsidiaries to refine our portfolio. These efforts have sharpened our focus on capital allocation, allowing us to prioritize investments in our core operations. As we move into FY26, we are committed to sustainable growth and delivering long-term value.”
In summary, Tata Communications is not just thriving financially but is also strategically positioning itself for future growth, making it an exciting company to watch in the upcoming fiscal year.
