Tata Communications posts 86.2 percent profit growth: meaning for Tata Communications stock

Published on 10/19/2026 at 04:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Q2 EBITDA margin reached 21.3 percent in the September quarter. On October 18, 2026, analysts retained a INR 2,129 target for Tata Communications stock.

Results and valuation markers

Second-quarter profit attributable to equity holders rose 86.2 percent to INR 3.41 billion on October 15, 2026.
The October 18, 2026 analyst consensus retained a INR 2,129 target.
Fiscal year 2026 revenue reached INR 248.03 billion, up 7.3 percent year over year.

Tata Comms, INE151A01013, Illustration mit AI erstellt.

Tata Communications (INE151A01013) reported an 86.2 percent year-over-year increase in second-quarter profit attributable to equity holders on October 15, 2026, while revenue rose 9.6 percent to INR 66.88 billion, according to Tata Communications. The result gives the stock a sharper operating reference as the company enters the second half of fiscal year 2027.

Q2 earnings reset the benchmark

EBITDA increased 21.2 percent year over year to INR 14.22 billion in the quarter ended September 30, 2026. The EBITDA margin expanded to 21.3 percent from 19.2 percent, while digital portfolio revenue grew 18.6 percent to INR 30.16 billion, according to Tata Communications.

The improvement was not limited to revenue scale. Digital margins improved to minus 3.6 percent in the second quarter, and the company said digital losses had halved from the preceding quarter. That makes margin conversion, rather than revenue growth alone, the central investor question.

What does the margin mean?

The answer is visible in the gap between revenue and EBITDA growth. Revenue advanced 9.6 percent, while EBITDA grew 21.2 percent, a difference of 11.6 percentage points that indicates stronger operating leverage during the September quarter.

Analyst expectations also frame the valuation. Simply Wall St reported on October 18, 2026, that the consensus target remained INR 2,129, based on ten analysts. The same source listed a high target of INR 2,600 and a low target of INR 1,850.

Three results mark the path

On April 23, 2026, Tata Communications reported fiscal year 2026 revenue of INR 248.03 billion, up 7.3 percent year over year, according to ScanX. On July 22, 2026, first-quarter fiscal year 2027 revenue rose 10.5 percent to INR 65.83 billion, while net profit fell 43.9 percent to INR 1.30 billion. On October 15, 2026, second-quarter revenue reached INR 66.88 billion and profit attributable to equity holders rose 86.2 percent to INR 3.41 billion, according to ScanX.

Dates around the latest results

The latest reporting date was October 15, 2026, covering the quarter ended September 30, 2026. The company also held its fiscal year 2026 annual meeting on July 9, 2026, when shareholders approved a dividend of INR 17.50 per share, according to ScanX.

Market context for Tata Communications

ScanX listed Tata Communications at INR 1,742.80 on the NSE on October 16, 2026. The company is classified as a telecommunications business and trades under the NSE ticker TATACOMM; the latest result leaves investors weighing faster EBITDA growth against the still-negative digital margin.