Tata Communications has reported its highest-ever quarterly EBITDA, with profit after tax nearly doubling and digital losses halving, as the Tata Group-owned connectivity player leans on artificial intelligence (AI) and data centre demand to drive growth.

For the quarter ended 30 September 2026, gross revenue rose 9.6 per cent year-on-year to INR 6,688 crore, while digital platform revenue climbed 18.6 per cent to INR 3,016 crore and data revenue grew 12.2 per cent to INR 5,810 crore, the company said in results issued from Singapore.

Profit nearly doubles as digital losses halve

Absolute EBITDA grew 21.2 per cent year-on-year to INR 1,422 crore, lifting the EBITDA margin by 202 basis points to 21.3 per cent. Profit after tax (PAT) jumped 86.2 per cent to INR 341 crore, with PAT margin expanding 210 basis points to 5.1 per cent.

The company’s digital portfolio — which spans cloud, security and collaboration offerings — saw losses halve from the previous quarter, narrowing its digital margin to -3.6 per cent.

“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,” said Ganesh Lakshminarayanan, managing director and chief executive officer of Tata Communications.

“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,” he 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.”

AI and data centre connectivity drive the next phase

The results come as Tata Communications doubles down on data-centre-to-data-centre (DC-to-DC) connectivity, an opportunity Lakshminarayanan has separately pegged at around US$1 billion, tied to India’s expanding digital infrastructure.

The quarter also saw the company extend its AI and connectivity push across the wider Tata ecosystem, partnering with Tata Motors Passenger Vehicles to bring built-in 5G cellular connectivity to the Sierra.ev as part of software-defined vehicle deployment in India, and with Tata Tele Business Services to extend unified AI infrastructure to India’s small and medium business economy.

Tata Communications connects enterprises in more than 190 countries and territories, counts 300 Fortune 500 companies among its customers, and links 80 per cent of the world’s cloud giants.