Tata Communications Q4 Results: Robust Digital Growth Drives 3x Net Profit Surge and Dividend Declaration
Business and Industry Overview:
Tata Communications Ltd is a company from the Tata Group. Tata Group is one of the biggest business groups in India. This company was called VSNL before. It gave only international phone services. In 2008, the name changed to Tata Communications. After that, the company started doing more things. Now it is a digital services company. Tata Communications helps other companies use the internet. It gives cloud services. This means storing data online. It gives video and voice call services. It also gives tools to keep data safe. This is called cybersecurity. It also works with smart devices. These are machines that can send and get data. This is called IoT (Internet of Things). Tata Communications works with many big companies. These companies are from many countries. Its network connects more than 190 countries. The company is growing well. It is making more money every year. In the latest report, its income and profit went up. Many companies are now using its services. Tata Communications wants to grow more. It will focus on 5G, cloud, and smart technology. Its shares are in the stock market. The name is TATACOMM. The Tata Group owns about 34.8% of the company. Other big investors also own some part. Tata Communications has a strong business. It has good future plans.
Latest Stock News:
On April 22, 2025, Tata Communications’ shares went up by 1.48% to ₹1,598.70 on the BSE before the results were announced. The stock reached a high of ₹1,617 during the day. Even though the stock went up by more than 2% in the past month, it has dropped by 8% in the year so far. As of April 23, 2025, the stock price was ₹1,607.10. It increased by ₹8.40 (0.53%) from the previous close. The price had risen on March 19, 2025, after positive financial results and strong investor ratings from JM Financial. The stock price reached ₹1,578.45, with analysts setting a target price of ₹2,030, showing confidence in its growth.Tata Communications gave its latest results for January to March 2025 (Q4 FY25). The company made a profit of ₹761 crore. This is 115% more than the same time last year. So, the profit more than doubled. The company earned a total of ₹5,990.35 crore. This is 6% more than last year. The company sold land in Chennai. It got extra money from that. This helped in making more profit. More companies are now using Tata Communications. They use internet, cloud, and digital services. Because of this, the company is doing well. The company said it will give a dividend to people who own its shares. A dividend means extra money given to shareholders. The stock price went up. On March 19, 2025, the stock became ₹1,578.45. It went up by 4.9%. A big company, JM Financial, said Tata Communications is a good company. They said the stock can go up to ₹2,030. They gave a “buy” rating. Tata Communications wants to grow more. It will focus on cloud services, 5G, security, and AI. These are fast-growing areas. The company will also give shares of its smaller company, NetFoundry Inc., to two other companies. These companies want to invest in it. The company’s CEO is Amur Lakshminarayanan. He said there is no big problem for Tata Communications. But some customers are still careful in spending.
Segmental information:
- Data and Managed Services:
This is the biggest part of their business. It includes services like internet, cloud storage, and data centers. They help businesses store, manage, and send data.
- Voice Services:
Tata Communications provides services for international calls. They help telecom companies and businesses make phone calls around the world.
- Wholesale Voice Solutions:
They offer international calling services to other telecom companies. Tata Communications has one of the biggest voice networks in the world.
- Digital Services:
This includes cloud services, security solutions, and the Internet of Things (IoT). Tata Communications helps businesses use technology to improve their work.
- Network Services:
Tata Communications provides private networks, internet services, and secure connections for businesses. These services help companies connect safely and grow.
- Media and Entertainment Services:
They provide services for TV, media, and entertainment companies. This includes things like video conferencing, broadcasting, and delivering content.
- Cybersecurity:
Tata Communications helps protect businesses from online threats. They keep data safe from hackers and other dangers.
- Enterprise Services:
Tata Communications offers services for businesses, like cloud computing, communication tools, and secure networks.
Subsidiary information:
- Tata Communications Transformation Services (TCTS):
This company helps other businesses use technology better. They help companies improve how they work using digital solutions.
- Tata Communications International Pte. Ltd.:
This company works outside of India. It provides services like cloud solutions and internet to customers in other countries.
- Tata Communications (Singapore) Pte. Ltd.:
This company works in Singapore. It gives services like internet and cloud solutions to businesses in Asia.
- Tata Communications Limited (Mauritius):
This subsidiary focuses on the African and Middle Eastern markets. It helps businesses in these areas with digital services and internet.
- Tata Communications (America) Inc.:
This company works in North America. It provides internet services, cloud computing, and voice solutions to businesses.
- NetFoundry Inc.:
NetFoundry works in cloud networking and cybersecurity. It helps businesses build secure connections over the cloud. Tata Communications plans to sell part of its stake in this company.
Q4 Highlights:
- Tata Communications made a profit of ₹761 crore in Q4 FY25. This is 115% more than the profit in the same quarter last year. The profit more than doubled.
- The company earned ₹5,990.35 crore in revenue in Q4 FY25. This is a 6% increase compared to ₹5,645.07 crore in the same quarter last year. The increase was mainly because of a 9.8% rise in revenue from their core data services.
- For the full financial year, Tata Communications earned a total of ₹23,238 crore in revenue.
- The big increase in profit was helped by one-off gains. These include ₹577 crore from selling a piece of land in Chennai and ₹311 crore from selling its stake in Tata Communications Payments Solutions. Without these gains, profit margins would have been lower compared to the previous quarter.
- The growth in revenue was mainly due to higher demand for Tata Communications’ data services like data connections and cybersecurity for businesses.
- The company plans to spend over $300 million in FY26 to grow in areas like undersea cables and cloud platforms. They want to increase their profit margins to 23–25% over the next two years. Maintenance costs will stay under 2% of revenue. Tata Communications is also focusing on cloud, networking, and media services.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY23 | FY24 |
| Revenue | 5,645 | 5,990 | 20,969 | 23,109 |
| Expenses | 4,569 | 4,868 | 16,739 | 18,540 |
| EBITDA | 1,076 | 1,122 | 4,230 | 4,569 |
| OPM | 19% | 19% | 20% | 20% |
| Other Income | -32 | 926 | 47 | 1,033 |
| Net Profit | 322.00 | 1,041 | 970 | 1,837 |
| NPM | 5.70 | 17.38 | 4.63 | 7.95 |
| EPS | 11.27 | 36.5 | 33.98 | 64.43 |