Tata Communications reported a robust Q2 FY2027 with a 9.6% revenue growth to Rs 6,687.89 crore and an 83.2% jump in net profit. The company also announced an internal restructuring of Kaleyra, Inc. and the appointment of Ms. Ridhi Sood as the new Company Secretary.
Tata Communications Reports Strong Q2 FY2027 Performance
Consolidated Net Profit: Rs 335.61 crore (+83.2% YoY)
Gross Revenue: Rs 6,687.89 crore (+9.6% YoY)
Reader Takeaway: Strong operational leverage and margin expansion drove profitability, while internal reorganization simplifies the group structure.
What just happened
Tata Communications released its financial results for the quarter ending September 2026. The company reported a significant boost in its bottom line, with profit after tax climbing to Rs 335.61 crore from Rs 183.21 crore in the previous year. Revenue from operations also rose to Rs 6,687.89 crore, supported by a 12.2% growth in the data segment. EBITDA margins expanded to 21.3% as absolute EBITDA grew by 21.2%.
Why this matters
The jump in profitability highlights the company's improved operating efficiency and successful scaling of its data business. Beyond the numbers, the board approved an internal reorganization involving the transfer of its stake in Kaleyra, Inc. to its subsidiary, Tata Communications (Netherlands) B.V. This is a procedural move to streamline the corporate structure and does not impact the company's ultimate economic interest in the entity.
Governance Update
The board has appointed Ms. Ridhi Sood as Company Secretary and Compliance Officer, effective November 1, 2026. She joins with over 15 years of experience, aiming to strengthen the company’s corporate governance framework.
Risks to watch
Investors should monitor the competitive landscape in the data connectivity and cloud services market. While the internal restructuring is neutral, any integration challenges within the subsidiary arms could pose future operational risks.
What to track next
Watch for sustained margin expansion in upcoming quarters and progress on the company's AI-focused initiatives, which remain key drivers for long-term growth.