India’s telecom and digital infrastructure scene just got a major highlight with Tata Communications stock rallying into investor focus. With a 223% jump in net profits YoY, this Tata Group company has reported its FY25 results, catching the eye of both retail and institutional investors. However, before you jump in, it’s worth digging a little deeper into what really moved the needle.
Let’s break down what’s going on with Tata Communications and whether its stock performance matches the earnings buzz.
Tata Communications FY25 Results: Strong Top-Line, Mixed Bottom-Line
The market woke up to the FY25 earnings of Tata Communications Ltd, which reported a 6% YoY rise in revenues from operations. Revenue climbed from ₹5,645 crore in Q4FY24 to ₹5,990 crore in Q4FY25. On a quarterly basis, revenue grew by 3.3% from ₹5,798 crore in Q3FY25.
What truly turned heads was the net profit spike — from ₹332 crore in Q4FY24 to ₹1,041 crore in Q4FY25 — clocking a massive 223% YoY increase. However, here’s the fine print: the surge includes an exceptional gain of ₹857 crore. When excluded, actual profits show a 22% YoY decline. That’s a critical detail many might overlook if they just see the headline number.
Even with this adjustment, operational metrics weren’t too bad. EBITDA grew 4% YoY, coming in at ₹1,122 crore versus ₹1,076 crore in the previous year. The EPS of the company has also soared from ₹11.27 to ₹36.50, largely due to the one-time gain.
How is the Stock Reacting Post-Earnings?
Despite the strong headline profit figures, the stock saw mild pressure in the trading session. Tata Communications shares were trading at ₹1,589.90, almost 1% lower than the day’s opening price of ₹1,650. The company’s market cap currently stands at ₹45,538 crore, placing it among the prominent midcap players in the tech and telecom domain.
This mild correction might reflect some profit booking or investor skepticism about the sustainability of these profit levels, especially given the reliance on one-off items.
For short-term traders, such moves offer a good opportunity for swing trading, while long-term investors must assess if the core business growth justifies the current valuation.
Key Financial Highlights: A Deeper Look
Here’s a snapshot of the full-year financial performance, which gives a better idea of the company’s health:
- Full-Year Revenue: ₹23,109 crore (up 11.2% YoY)
- EBITDA Margins: 19.8% — a solid sign of operational efficiency
- Data Business Growth: Crossed ₹19,000 crore, rising 13.7% YoY
The data services division, which remains a core driver for Tata Communications, continues to show double-digit growth. This aligns well with India’s rising demand for secure, reliable, and scalable digital infrastructure.
Company Overview: From VSNL to Global Ecosystem Leader
For those new to the story, Tata Communications began as VSNL back in 1986. Over the decades, it has transformed into a global digital ecosystem enabler, offering everything from managed services to secure global networks.
Headquartered in Mumbai, the company provides solutions to over 7,000 enterprises worldwide and boasts a footprint across 190 countries. It supports mission-critical systems for sectors such as finance, manufacturing, retail, and telecom.
Their strategic edge lies in owning subsea cable systems and secure cloud-based solutions — both high-demand areas as Indian companies continue their digital transformation journeys.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
