Tata Communications Share Price Dips 1.74%; Posted 12.9% QoQ PAT Growth in Q3 FY25 Results

Tata Communications Limited announced its financial results for the third quarter of FY25.

Q3 FY 2025 Financial Highlights 

The company’s data revenue increased by 6.2% year-on-year (YoY) to ₹4,903 crore, while digital revenue saw a 10.2% YoY growth, reaching ₹2,313 crore. The company reported a profit after tax (PAT) of ₹256.6 crore, reflecting a 12.9% sequential growth compared to the previous quarter.

Commenting on the performance, the MD and CEO of Tata Communications, A.S. Lakshminarayanan, said, “Q3 has been a satisfactory quarter with strong growth in digital revenues, improved margins, and enhanced free cash flow. We are advancing well in our review of subsidiaries, with a clear focus on optimising their performance and unlocking value, as demonstrated in the case of Tata Communications Payments Solutions Limited. I believe in the world of AI, digital infrastructure will be even more critical and our investments in our Digital Fabric will hold us in good stead.”

Kabir Ahmed Shakir, Chief Financial Officer of Tata Communications, said, “The strategic actions to streamline and make our business future-ready has begun paying off. Over and above the divestiture of our payment solutions business, we continue to pursue other monetisation opportunities and strategic evaluation of assets. With disciplined capital allocation and our ‘Fit to Grow’ strategy we remain confident of delivering sustainable value to shareholders and customers alike.”

Conclusion

The results highlight Tata Communications’ continued focus on expanding its data and digital offerings, contributing to its financial performance in the third quarter of FY25.

On January 23, 2025, Tata Communications share price (NSE: TATACOMM) opened at ₹1,684.85, up from its previous close of ₹1,677.95. However, at 9:44 AM, the share price of Tata Communications was trading at ₹1,648.80, down by 1.74% on the NSE.

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