Tata Communications reported a 29% year-on-year decline in consolidated net profit for the first quarter of fiscal year 2027. Net profit for the period stood at ₹130 crore. A one-time cost of ₹106 crore for actuarial provisions drove this decline. This charge follows changes to the legal definition of wages under India's labor codes.
Revenue from operations grew 10% to reach ₹6,583 crore. The company's digital portfolio revenue increased 17.1% year-on-year. EBITDA for the quarter rose 8.21% to ₹1,230 crore.
Company shares fell as much as 6% during the July 22, 2026, trading session. The drop in profitability impacted market sentiment despite the underlying growth in revenue.