Tata Communications, a Tata Group company, released its financial performance for the December quarter today, January 21, reporting a consolidated net profit of ₹364.28 crore, up 55% compared with ₹236 crore in the same period last year.
Sequentially, net profit rose 99% from ₹183.21 crore reported in the September quarter. Revenue from operations during the reporting quarter stood at ₹6,189 crore, a 6.74% increase over ₹5,798 crore in the December 2024 quarter.
The net profit growth was largely led by other income, which came in at ₹259.29 crore during the quarter.
In terms of segment-wise performance, revenue from the Data Services segment, which accounted for the bulk of total revenue, stood at ₹5,379.81 crore, up from ₹4,917 crore in the same period last year.
Revenue from the Voice Solutions segment declined to ₹373 crore, compared to ₹410.52 crore in the corresponding quarter of the previous year, according to the company’s earnings filing.
The company’s Voice Solutions segment includes international and national long-distance voice services, while the Data Services include core connectivity services and digital platforms & connected services.
On the operating front, the company reported an EBITDA of ₹1,228 crore, a marginal 4% increase from ₹1,181 crore in Q3 FY25. EBITDA margins stood at 19.84%, slightly lower than the 20.36% recorded in the December 2024 quarter.
Commenting on the results, AS Lakshminarayanan, MD and CEO, Tata Communications, said, “This quarter’s performance reflects our disciplined focus on driving data-led growth with expanding margins and a healthy order book.”
“We are gaining momentum across the business, and the capability shift we have invested in is now clearly translating into stronger products and sharper execution for customers. With multiple launches ahead, we are well positioned to build sustainably and accelerate the next phase of growth,” Lakshminarayanan further stated.
Tata Communications share price trend
The sell-off in Tata Communications accelerated following the release of its December quarter performance, with the stock crashing 6% to ₹1,607 apiece, extending its losing streak to a second consecutive session.
The decline has also contributed to a 12% drop in January so far. The stock had finished CY25 with a gain of 7.2%. Looking at its long-term performance, Tata Communications has underperformed the broader market, delivering only a 53% return over the past five years.
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