Tata Communications’ Financial Results: Digital Revenues Rise 4.1% QoQ, Margins Improve to 20.4%

Mumbai, India, January 22, 2025: Tata Communications announced its financial results for the third quarter of FY25.

Highlights | Q3 FY2025

• Data revenue grows 6.2% YoY, coming in at INR 4,903 crore
• Digital revenue up 10.2% YoY, totalling INR 2,313 crore
• PAT up 12.9% QoQ, coming in at INR 256.6 crore

Commenting on the results, A.S. Lakshminarayanan, MD and CEO, Tata Communications, 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, 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.”

Consolidated financial highlights

Q3 FY25

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Major Awards and Recognitions This Quarter

Digital Fabric Analysts Recognitions

• Tata Communications MOVE™ won the Connected Car Platform of the Year at the AutoTech Breakthrough Awards 2024
• Honoured with multiple awards the MEF NaaS Excellence Awards 2024, including MEF 3.0 CE Service Provider of the Year – Asia Pacific, 2024 SASE Service Provider of the Year – Asia Pacific, SD-WAN Service Provider of the Year — Asia Pacific
• Won the Runner Up – Champions Track, Runner Up – Enterprise Segment and Best Conversion Winner awards at the AWS Indian Prospecting League
• Recognised as an 'Established Leader' in the Juniper Research RCS Business Messaging Leaderboard 2024
• Awarded the Service Provider Partner of the Year FY24 for India and SAARC at the Palo Alto Networks FY25 Partner Summit
• Recognised as the Champion Roaming Vendor by Kaleido Intelligence

Other recognitions

• Featured in the 2024 Avtar and Seramount 100 Best Companies for Women in India for the 8th consecutive time, along with being recognised in the ‘100 Best - Hall of Fame’
• Received the Sustainable Growth Award for Organisation in the Telecom Ecosystem 2024 at the 2024 India Mobile Congress
• Won the Indian CSR Award for Project Nanneer — Tata Communications' transformative water conservation initiative
• Honoured with the Jagjivan Ram Award under the Governance category at the 34th IISSM Annual Global Conclave
• Genius Wong, Executive Vice President - Core and Next-Gen Connectivity Services and Chief
• Technology Officer, Tata Communications, recognised as a Gold Winner at 2024 Stevie® Awards in the category of Female Executive of the Year – Business Products – More Than 2,500 Employees
• Recognised in the Very Large Category (10,001+ employees) for exceptional volunteer efforts at the Tata Engage Awards 2024
• Honoured with Coursera 2024 Talent Transformation Award for India

An investor data pack providing detailed analysis of the results for the quarter ended 31st December 2024 has been uploaded on the Tata Communications website and can be accessed here.