Tata Communications Q4 Results 2025 are out, and the company has reported a massive 115% surge in net profit for the quarter ending March 31, 2025. Backed by strong data services performance and strategic asset monetization, the telecom giant has also declared a final dividend of ₹25 per share for FY25.
Key Highlights of Financial Performance
Revenue: ₹5,990.35 crore (up 6% YoY from ₹5,645.07 crore)
Net Profit: ₹761.17 crore (up 115% YoY from ₹354.57 crore)
Total FY25 Revenue: ₹23,238 crore
Share Price: ₹1,587.50 (down 0.62% post-results)
What Drove Tata Communications’ Strong Q4 Performance?
The impressive jump in net profit was largely supported by one-time gains, including:
- ₹577 crore from the sale of land in Chennai to an associate firm
- ₹311 crore from divestment of entire stake in Tata Communications Payment Solutions
Additionally, data services revenue rose 9.8%, driven by growing demand for cybersecurity, enterprise connectivity, and cloud solutions.
Strategic Plans and Outlook
Tata Communications is ramping up its capital expenditure to over $300 million in the upcoming fiscal, up from ~$270 million in FY25. The focus will be on:
- Cloud platforms
- Undersea cable infrastructure
- Enterprise networking and media services
The company targets to boost pre-tax margins to 23-25% in the next two years (from 19.8% in Q4 FY25). There’s also a strategic push to monetize non-core assets and restructure its foreign subsidiaries, including potential stake dilution in a loss-making overseas unit.
“We remain focused on sustainable, high-margin growth by deepening our enterprise offerings and expanding globally,” said Kabir Shaikh, CFO of Tata Communications.
Revenue Target & Guidance
Earlier in January 2025, the company set an ambitious target to reach ₹28,000 crore in revenue by FY27. However, this target may be delayed, with revised guidance expected during the upcoming investor day.
Dividend Announcement
The Board of Directors has recommended a 250% dividend, translating to ₹25 per equity share for FY25. The final dividend is subject to shareholder approval in the upcoming AGM.
Tata Communications Q4 FY25: Summary Table
| Metric | Q4 FY25 | Q4 FY24 | Change |
|---|---|---|---|
| Operating Revenue | ₹5,990.35 Cr | ₹5,645.07 Cr | ↑ 6% |
| Net Profit | ₹761.17 Cr | ₹354.57 Cr | ↑ 115% |
| Dividend | ₹25/share | – | New |
| Share Price (Current) | ₹1,587.50 | – | ↓ 0.62% |