Q4 2026 Tata Communications Ltd Earnings Call Transcript
Key Points
- Tata Communications Ltd (BOM:500483) reported strong growth in its digital portfolio, with a 16.7% increase year-over-year, driven by next-gen connectivity platforms growing at 24%.
- The company achieved a high Net Promoter Score (NPS) of 83 globally and 95 in India, indicating strong customer satisfaction and preference.
- Tata Communications Ltd (BOM:500483) serves over 50% of the Global Fortune 500 companies, with 60% of its revenue coming from international markets, showcasing its global reach.
- The company's order book showed healthy double-digit year-over-year growth, with significant wins in network transformation and digital fabric solutions.
- The company has a strong focus on AI-led transformation and digitizing supply chains, positioning itself to capture emerging trends in enterprise AI and digital infrastructure.
- The company's EBITDA margins for the quarter were at 19.6%, lower by 25 basis points quarter-over-quarter and 86 basis points year-over-year, indicating margin pressure.
- The full-year PAT for continuing business decreased by 35.8% year-over-year, impacted by higher tax rates and prior period items in foreign jurisdictions.
- Despite strong order book growth, the revenue growth was below expectations, with underlying growth less than 9% after adjusting for currency effects.
- The company faces potential near-term headwinds from geopolitical developments in West Asia, which could impact demand and cost structures.
- There is a need for better communication of the company's integrated portfolio to customers, as some are not fully aware of the breadth of services offered by Tata Communications Ltd (BOM:500483).
Ladies and gentlemen, good evening, and welcome to the Tata Communications Limited Q4 FY26 Earnings Conference Call. The results for the quarter ending March 31, 2026, have been announced, and the data pack is available on our website. (Operator Instructions) And this conference is being recorded. We have with us from the management team, Mr. Ganesh Lakshminarayanan, MD and CEO Designate; Mr. Kabir Ahmed Shakir, CFO; Mr. Siddhartha Mundra, CFO Designate; Mr. Rajiv Sharma, Head of Investor Relations; and Mr. Sudeshna Patnaik, DGM, Investor Relations.
We will begin the call with opening remarks from Ganesh on the business performance and outlook, followed by Siddhartha on the company's business and financial performance. Post that, we will open the floor for questions for the management. In the event that the management line drops, we request participants to stay connected while we reconnect them to the meeting. Some of the statements made in today's call may be forward-looking in nature and are subject to risks and uncertainties. The company does not undertake to update these forward-looking
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