Tata Communications Profit Surges 99% on Other Income Boost

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AuthorIshaan Verma|Published at:
Tata Communications Profit Surges 99% on Other Income Boost
Overview

Tata Communications reported a 99% quarter-on-quarter jump in net profit to Rs 365.3 crore for Q3 FY26. This surge was primarily fueled by a significant increase in other income, which rose to Rs 259 crore from a loss of Rs 17 crore in the previous quarter. Revenue remained nearly flat at Rs 6,189 crore. Margins improved by 60 basis points to 19.8%. The company also appointed Ganesh Lakshminarayanan as its new MD and CEO.

Profit Surge Driven by Other Income

The doubling of net profit can be attributable to a higher other income of Rs 259 crore in this quarter, which compares to a loss of Rs 17 crore in the previous quarter. This substantial gain in non-core earnings provided the primary impetus for the bottom line's impressive performance.

Revenue and Margins

Revenue for Tata Communications remained largely flat, standing at Rs 6,189 crore, marking a marginal increase of just 1% from the Rs 6,099 crore reported in the prior quarter. Despite the flat top-line, operational efficiency saw improvement, with margins expanding by 60 basis points quarter-on-quarter to reach 19.8%. The company also accounted for a one-time labour code impact of approximately Rs 61 crore.

Leadership Change

In addition to its financial disclosures, Tata Communications confirmed the appointment of Ganesh Lakshminarayanan as its new Managing Director and Chief Executive Officer. This leadership transition coincides with the company's financial reporting period.

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