Tata Communications in focus: Stellar Q4 earnings, dividend to move stock today  

Shares of Tata Communications are in news today after the firm announced a noteworthy 223.6% increase in net profit for the fourth quarter ending March 31, 2025. Profit rose to Rs 1,040.5 crore. This significant rise is credited to robust growth in the company's digital fabric portfolio. Digital revenues now make up nearly 50% of Tata Communications' offerings, underscoring the effectiveness of its strategic direction and execution. Tata Communications shares rose 1.57%, closing at Rs 1,599.25 on BSE in the previous session.

The company's revenue from operations reported a 6.1% year-on-year increase, amounting to Rs 5,990.4 crore for Q4 FY2025. Although the EBITDA rose by 4.2% to Rs 1,122.1 crore, the EBITDA margin experienced a slight decline to 18.7% from 19.1% in the same period last year. Consolidated revenue for the fiscal year saw an 11.2% rise, reaching Rs 23,109 crore, with the data services segment contributing significantly by surpassing the Rs 19,000 crore mark, reflecting a 13.7% year-on-year growth.

AS Lakshminarayanan, MD and CEO of Tata Communications, remarked, "Our continued investments across the full stack of our digital fabric — network, cloud, security, IoT, and our interaction fabric — are now translating into stronger customer relevance and high double-digit growth of digital revenues, bringing this vision to life.” He added that "Today, digital revenues comprise nearly 50% of our portfolio, reflecting the strength of our strategy and execution. Our differentiated offerings continue to receive recognition from industry analysts, establishing us as leaders across domains."

The board has recommended a final dividend of Rs 25 per share, conditional on approval at the upcoming annual general meeting.