Tata Communications Posts 19% Digital Portfolio Growth, Doubles Down on Enterprise AI

Tata Communications reported strong financial results for Q4 FY2026, with its digital portfolio growing 19.2% year-on-year as demand for AI-ready infrastructure, cloud connectivity, and next-generation networking accelerates across global enterprises.

The company’s data revenue reached INR 5,684 crore in Q4 FY26, up 11.5% year-on-year, while full-year data revenue crossed the INR 21,000 crore mark for the first time, growing 9.4% on an annual basis. Digital portfolio revenue for the full year rose 16.7% to INR 10,621 crore, crossing 50% of the total data portfolio — a milestone the company described as a structural shift in its business mix.

Group EBITDA for Q4 came in at INR 1,284 crore, up 14.4% year-on-year, with EBITDA margin improving 86 basis points to 19.6%. Profit after tax, however, fell 65.4% to INR 263 crore for the quarter, reflecting higher depreciation and finance costs associated with ongoing network investment.

Enterprise AI and GCC Demand Drive Deal Wins

Ganesh Lakshminarayanan, MD and CEO-Designate of Tata Communications, highlighted deal wins in network transformation, multi-cloud connectivity, and employee interaction capabilities for Global Capability Centres (GCCs) as indicators of the company’s positioning for the AI era.

“Q4 has been a strong quarter with our digital portfolio continuing to drive data growth. These reflect the inherent strength of Tata Communications’ ability to serve global enterprises through a unified, scalable digital infrastructure for the AI era.”
— Ganesh Lakshminarayanan, MD and CEO-Designate, Tata Communications

The company also noted that its net debt-to-EBITDA ratio improved to below 2x during the quarter. The board has recommended a dividend of INR 17.5 per share for FY26.

Singapore Positioning

Tata Communications framed its results in the context of Singapore’s ambitions as a regional AI and digital hub, positioning its connectivity and cloud infrastructure as foundational to enterprise digital transformation in the market. The company was recently recognised as a Leader in the IDC MarketScape for Asia/Pacific Managed SD-WAN/SASE Services 2025–2026, and ranked number one in the Frost Radar for Unified Communications as a Service in APAC.

For the full year FY26, gross revenue rose 7.3% to INR 24,803 crore, while full-year EBITDA grew 5.5% to INR 4,822 crore. Full-year PAT declined 35.8% to INR 1,044 crore.

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