Tata Communications shares jump after Q2 earnings; key things to know

Shares of Tata Communications Ltd surged 12.42 per cent in Thursday's trade to hit a high of Rs 1,827.85 after the Tata Group entity reported its second-quarter (Q2 FY27) results.

The company reported consolidated net profit of Rs 341 crore for Q2 FY27, up 86.2 per cent year-on-year (YoY) from Rs 183 crore in the corresponding period last year.

Its profit after tax (PAT) margin improved to 5.1 per cent from 3 per cent a year ago.

EBITDA rose 21.2 per cent YoY to Rs 1,422 crore in the September quarter, compared with Rs 1,174 crore in Q2 FY26.

EBITDA margin expanded to 21.3 per cent from 19.2 per cent in the year-ago period.

Tata Communications said it recorded its highest EBITDA and fastest EBITDA growth in Q2 FY27.

The company's gross revenue increased 9.6 per cent YoY during the quarter, while digital platform revenue grew 18.6 per cent. Data revenue rose 12.2 per cent YoY.

The company also reported an improvement in its digital business, with losses halving from the previous quarter and digital margins standing at (-)3.6 per cent.

Commenting on the results, Ganesh Lakshminarayanan, MD and CEO of Tata Communications, said, "I am pleased to report a stellar second quarter, with improved profitability across the business. Absolute EBITDA growth is a clear sign that our discipline and focus are paying off. As AI emerges as a powerful growth driver, our Unified AI Stack is resonating with customers as it helps bridge the gap between enterprise intelligence and enterprise action."

Lakshminarayanan added, "We continue to see strong demand for DC-to-DC connectivity, a structural growth opportunity where our extensive network assets and ongoing investments give us a distinct advantage. We enter the second half of the year with momentum and confidence."

As per exchange data, promoters held a 58.86 per cent stake in Tata Communications.