Tata Communications Q2 FY27 Results Analysis: PAT Jumps 86%, EBITDA Margin Expands 202 bps (TATACOMM)
Tata Communications Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 6,687.89 Cr (+9.60% YoY) and PAT growth of +86.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 6,687.89 Cr (+9.60% YoY) |
| PAT (Q2) | Rs. 341.03 Cr (+86.30% YoY) |
| EBITDA margin | 21.30% (+202 bps YoY) |
| EPS (Q2) | Rs. 11.96 (+86.30% YoY) |
| Market cap | Rs. 47,502.37 Cr |
| CMP | Rs. 1,666.25 |
Quarter Snapshot
Tata Communications grew revenue 9.6% YoY to Rs.6,687.89 crore while EBITDA rose 21.2% and PAT rose 86.3% to Rs.341.03 crore, with EBITDA margin up 202 bps to 21.3% — the highest in the available series — on a 7.2% YoY reduction in employee costs. Campaign Registry revenue grew 37.1% at a 58.3% EBIT margin, digital platform revenue rose 18.6%, and digital portfolio losses halved to -3.6%, keeping the FY27 double-digit EBITDA growth objective on track. Net debt/EBITDA worsened to 2.37x against the guided <2x target and bad debts written off rose 5.6x YoY to Rs.161.23 crore in H1.
Key Investment Insights
Key Positives
- PAT to equity holders grew 86.3% YoY to Rs.341.03 crore; normalized PAT grew 101% YoY to Rs.368.49 crore
- EBITDA grew 21.2% YoY to Rs.1,422 crore with margin up 202 bps to 21.3%, the highest in the available series
- Revenue grew 9.6% YoY to Rs.6,687.89 crore, with data revenue up 12.2% and digital platform revenue up 18.6% YoY
- Campaign Registry revenue grew 37.1% YoY with EBIT margin up 2,101 bps to 58.3%
- Employee benefits expense fell 7.2% YoY and other expenses fell 3.8% YoY while revenue grew 9.6%
- H1 FY27 free cash flow turned positive at Rs.62 crore versus negative Rs.186 crore in H1 FY26; CFO/PAT at 3.29x
- Digital portfolio normalized margin improved to -3.6% from -6.9% in Q1; FY27 double-digit EBITDA growth objective tracking at +14.8% in H1
- Data Services EBIT margin improved 130 bps to 7.3% and Transformation Services margin improved 947 bps to 25.2%
Risk Factors
- Net debt/EBITDA worsened to 2.37x from 2.06x against management's guided <2x target; net debt rose Rs.1,477 crore in H1
- Bad debts written off jumped 5.6x YoY to Rs.161.23 crore in H1 (8.57% of receivables vs 1.90%); trade receivables absorbed Rs.454 crore
- Voice Solutions revenue fell 8.9% YoY with EBIT margin nearly halved to 4.9%
- Transformation Services revenue fell 33.7% YoY
- Rupee ~9% weaker YoY accounts for most of the 9.6% reported revenue growth; organic growth likely low single digits
- DoT show-cause demand notices of Rs.7,844.57 crore disclosed as contingent liability versus standalone net worth of Rs.10,306.04 crore
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.