Tata Communications Reports Higher Profit as Data Services Growth Offsets Labor Cost Headwinds
Tata Communications saw a 54.3 percent profit jump to 3.65 billion rupees in the third quarter. This recovery marks the first profit rise in three quarters.
Insights:
Mumbai-based Tata Communications Ltd reported a net profit of 3.65 billion rupees for the quarter ended December 31, 2025, marking a 54.3% increase compared to the same period last year. This result represents the first profit rise for the company in three quarters, signaling a shift in performance as it navigates a changing regulatory landscape in India 
IN. The company’s overall revenue for the quarter rose by 6.7% to 61.89 billion rupees, driven primarily by strong demand for digital solutions.
IN. The company’s overall revenue for the quarter rose by 6.7% to 61.89 billion rupees, driven primarily by strong demand for digital solutions.A significant driver of this growth was the data services business, which saw its revenue increase by 9.4% to reach 53.8 billion rupees. Tata Communications Ltdhas been actively reducing its reliance on legacy network services, which have recently faced pricing pressure and operational disruptions. Instead, the firm is investing heavily in digital infrastructure, including cloud connectivity services, cybersecurity services, Internet of Things services, and communication platforms. The company has set an ambitious target to grow its data business revenue to 280 billion rupees by fiscal year 2028.
