Tata Communications shares jump 5% after Q4 results; JM Fin retains 'Buy'

April 23, 2026 · 12:44 pm IST Source: Business Standard
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Key Takeaways

  • Sequentially, its net profit fell 28 per cent from ₹364.28 crore in the December 2025 quarter.
  • For the full FY26, the company's net profit fell 35.8 per cent Y-o-Y to ₹1,044 crore, while revenue increased 7.3 per cent to ₹24,803 crore.
  • CATCH STOCK MARKET TODAY LIVE Tata Communications Q4 results highlights On a consolidated basis, the company reported a net profit of ₹263 crore in Q4FY26, down 65.44 per cent from ₹761 crore in the year-ago period, due to higher costs and one-off impacts.
  • Revenue from operations during the reported quarter stood at ₹6,554 crore, up 9.4 per cent from ₹5,990 crore in the year-ago period.

Full Report

Tata Communications share price today

Shares of Tata Communications, a global digital ecosystem company, jumped over 5 per cent to hit an intraday high of ₹1,604 on the NSE, amid an overall subdued market. The rally comes as the company reported better-than-expected numbers for the March 2026 quarter (Q4FY26) results.

Around 12:10 PM, Tata Communications stock was trading 4.2 per cent higher at ₹!,589, compared to the previous session's close of ₹1,525 on the NSE. In comparison, the NSE Nifty50 was quoting at 24,223.50 levels, down by 154.6 points or 0.63 per cent. The market capitalisation of the company stood at ₹45,261 crore. The stock has recovered around 22 per cent from its 52-week low of ₹1,322 touched on April 2, 2026. 
CATCH STOCK MARKET TODAY LIVE

Tata Communications Q4 results highlights

On a consolidated basis, the company reported a net profit of ₹263 crore in Q4FY26, down 65.44 per cent from ₹761 crore in the year-ago period, due to higher costs and one-off impacts. Sequentially, its net profit fell 28 per cent from ₹364.28 crore in the December 2025 quarter.

Revenue from operations during the reported quarter stood at ₹6,554 crore, up 9.4 per cent from ₹5,990 crore in the year-ago period.

On the operational front, the company reported an earnings before interest, tax, depreciation and amortisation (Ebitda) of ₹1,284 crore, up 14.4 per cent from ₹1,122 crore in the corresponding quarter of the previous fiscal. Ebitda margins stood at 19.6 per cent, up 90 basis points from 18.7 per cent in the year-ago period.

For the full FY26, the company's net profit fell 35.8 per cent Y-o-Y to ₹1,044 crore, while revenue increased 7.3 per cent to ₹24,803 crore. 
READ | Trent shares fall 4% after Q4 results; brokerages see up to 18% upside

JM Financial on Tata Communications

According to JM Financial, Tata Communications reported consolidated revenue of ₹6,550 crore in Q4FY26, up 5.9 per cent Q-o-Q and 9.4 per cent Y-o-Y, beating estimates on the back of strong growth across its digital portfolio, core connectivity, voice segments and TCR.

Data segment revenue came in at ₹5,684 crore, up 6.1 per cent Q-o-Q and 11.5 per cent Y-o-Y, with digital portfolio revenue at ₹2,901 crore (up 9.4 per cent Q-o-Q, 19.2 per cent Y-o-Y) and core connectivity revenue at ₹2,770 crore (up 2.8 per cent Q-o-Q, 4.5 per cent Y-o-Y), both ahead of estimates.

However, Ebitda came in at ₹1,284 crore, only marginally ahead of estimates due to higher network and operating costs, with margins at 19.6 per cent for the quarter. Net debt declined sequentially to ₹9,400 crore, while capex also moderated.

The brokerage has maintained a ‘Buy’ rating with an unchanged target price of ₹1,980, valuing the stock at 10x FY28 EV/Ebitda for the data segment. It expects Ebitda to grow at around 20 per cent CAGR over FY26–29E, supported by strong digital demand and margin improvement. 
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Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.

Originally reported by Business Standard.
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