Q1 2026 Tata Communications Ltd Earnings Call Transcript
Key Points
- Data revenue grew by 9.4% year-on-year, indicating strong performance in the data segment.
- Digital revenues increased by 17.4% year-on-year, showcasing robust growth across the digital portfolio.
- EBITDA margin improved to 19.1%, reflecting better profitability and operational efficiency.
- The company secured significant multimillion-dollar deals, including a large captive SOC deal and a greenfield Wi-Fi 6 network deployment.
- Order book experienced a healthy double-digit growth quarter-on-quarter, suggesting strong future revenue potential.
- Core connectivity business saw a sequential decline of 1.4% quarter-on-quarter, impacted by issues in the SAARC region.
- Net debt increased to INR10,124 crores, primarily due to working capital effects and seasonal factors.
- Free cash flow for the quarter was negative INR621 crores, affected by CapEx investments and lack of tax refunds.
- GCS revenue declined by 33% quarter-on-quarter and 29% year-on-year, due to the impact of an onerous contract exit.
- The SAARC region faced economic and payment issues, leading to business disruptions and impacting margins.
(technical difficulty)
TCTS. Data revenue grew by 9.4% year-on-year. EBITDA grew by 1.3% Q-on-Q and INR1,137 crores. EBITDA margin came in at 19.1%, an improvement of 30 basis points Q-on-Q. On the order book, happy to share that we have a good start to the year, and our order book is up a healthy double-digit Q-on-Q. The growth is robust across India and also the international regions.
Our funnel continues to be healthy and well diversified across the core and digital services. We won one of the largest multimillion-dollar captive SOC deals in India. The deal involves the establishment and management of a full-fledged captive SOC and the implementation and integration of multiple advanced security tools and other complementary security solutions.
We also won a multimillion deal from a leading technology player for diverse network connectivity solutions for their APAC to Europe, Americas DC/DC connectivity. We also won an order for a greenfield Wi-Fi 6 network
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