Tata Communications

“I think this year we’ll absolutely deliver what we have promised. We are focused on delivering what we have promised. We will come back to you in the Investor Call in February and talk about the longer-term growth which is ahead of us.”

“Our commitment is to turn – on the absolute EBITDA growth, making sure that we deliver double-digit EBITDA growth this year and turn the digital portfolio to EBITDA positive at the soonest”

“So what we have achieved as of now for the quarter and in the coming quarters, we believe that that should be achievable. There are no one-offs or there are no such events that are impacting our Q2 performance in any way.”

“Our commitment to make sure that the whole digital business becomes EBITDA positive as soon as possible is our everyday focus. So you will hopefully see that in the coming quarters.”

“While we continue to invest in expanding our capabilities, we remain focused on disciplined execution, remain focused on scaling capacity in line with customer demand, and leveraging anchor customer led expansion opportunities to ensure efficient capital deployment.”

“Cash CapEx trended up this quarter, reflecting investments in our undersea cable assets and DC-to-DC network expansion.”

“Order book for this quarter has been robust double-digit growth.”

“So there are no large wins which are part of this order book. This is several wins across several businesses.”

“And, we think we got the best quarter in Q2.”

“During the quarter, we secured a multi-million dollar engagement with the leading global neo-cloud provider to deliver multi-terabyte connectivity for the interconnection of large-scale CPU clusters supporting their AI data center build-out in India.”

“We are providing with them, the whole connectivity between the metro connectivity as well as the subsea connectivity they need between the data centers they have in here and data centers they will have in the U.S.”

“With this, we are very close to EBITDA breakeven for the overall digital portfolio.”

“Digital portfolio revenue is up by 18.6% on a Y-o-Y basis. Digital revenue growth was broad-based, led by interaction, next-gen connectivity, and the IoT platform.”

“We are seeing growth in next-gen connectivity, which is growing up by almost 27%.”

“We are seeing some significant demand in the core connectivity business coming up. I think let’s wait one more quarter, you will definitely see.”

“So there’s definitely improvement in that voice part of the business, but it’s too early to say whether it’s material or not.”

“We are seeing huge momentum in our order book for cloud in the India market.”

“Our projection is that there’s going to be 70 petabytes of traffic needed by 2036. We are at about two or three right now.”

“That’s not true. I think our network layer is very, very global.”

“Now people are asking for 500 gig connectivity and people are asking for connectivity which is latency sensitive, right?”

“We’re also particularly encouraged that the growing proportion of our recent wins are from AI-led demand.”

“The digital portfolio reported EBITDA margin of negative 3.6% versus negative 6.9% in the previous quarter.”

“For the first half, the EBITDA growth on a Y-o-Y basis stood at 14.8%. EBITDA margins for the quarter came in at 21.3%.”

“we have undertaken a lot of initiatives to bring down the overall cost structure in the media business. Some of that has already started playing out, some of that will start playing out in the coming quarters.”

“So our MOVE business also has seen substantial improvement in profitability, and we continue to be very strong and focused on that, that vertical. We are seeing margin uptake opportunities across all the verticals, actually.”

“Second, the mix of the revenue is changing. As you could see the GR/NR ratio is changing for the digital portfolio, so the quality of revenue is improving. And third and, most important, the operating leverage is kicking in.”

“FCF for the quarter was ₹212 crores, a sharp improvement from a negative FCF in the previous quarter.”

“Our EBITDA to operating cash flow conversion improved to 72%, demonstrating our focus in driving agility while maintaining disciplined capital and working capital management.”

“We ended the quarter with net debt of ₹11,197 crores. Net debt-to-EBITDA stood at 2.17x.”

“So right now you should think of this as a platform-led pricing model, which is fixed SaaS-like model on a recurring basis, plus usage based on consumables.”

“The net debt-to-EBITDA has held steady despite dividend payments this quarter.”

“We finally have the full team with Narottam Sharma, who has joined us as a Chief Transformation Officer since the last investor call.”

“Normalizing for the same, data revenues saw a growth of about 6% on a Y-o-Y basis.”

“I am pleased to share that we have reached an in-principle agreement with the Canada Revenue Agency on settling a longstanding tax matter in our Canada subsidiary. The corresponding contingent liability as on 31st of March 2026 stood at ₹1,658 crores.”

“There have been some events which were in Middle East which got cancelled because of the challenges.”

“I think in the past growth has been also impacted by cable cuts.”

“I’m happy to report that EBITDA for the quarter came in at ₹1,422 crores, up 21.2% on a Y-o-Y basis.”

“The Q2 FY27 consolidated revenue came in at ₹6,688 crores, up 9.6% Y-o-Y.”

“Data revenue for the quarter came in at ₹5,810 crores, growth of 12.2% Y-o-Y.”

“PAT after minority interest for this quarter stood at ₹341 crores, up by 86% on a Y-o-Y basis.”

“ROCE came in at 15.9%, up by 71 basis points on a Y-o-Y basis, driven by our focus on capital efficiency.”