Tata Comm Q2 FY27 Results (NSE: TATACOMM)
Signal: Steady quarter
The read
The trajectory improved in Q2FY27: consolidated revenue growth accelerated to +9.6% from +6.6% in Q1FY27 and PAT rebounded 83.2% YoY to ₹335.61 Cr, driven by Data Services and Campaign Registry; however, the group remains capex- and debt-intensive, with H1 capex of ₹1,500.69 Cr, borrowings of ₹11,854.54 Cr and depreciation rising 9.2% YoY while PPE declined.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,687.89 Cr | +9.6% | +1.6% |
| EBIT | ₹697.35 Cr | +46.0% | |
| Net profit | ₹335.61 Cr | +83.2% | |
| EPS | ₹11.96 | +86.3% | |
| EBIT margin | 18.9% |
P&L walk
Revenue accelerated to ₹6,687.89 Cr, +9.6% YoY versus +6.6% in Q1FY27, with Data Services and Campaign Registry driving segment growth; PAT rose 83.2% to ₹335.61 Cr despite a ₹36.54 Cr staff-optimization charge.
Segments
Data Services was the main driver at ₹5,810.99 Cr revenue, +11.7% YoY, with segment result up 35.8% to ₹425.74 Cr; Campaign Registry was the fastest-growing unit at +37.1% revenue and +114.4% segment-result growth, while standalone PAT of ₹125.86 Cr was 62.5% below consolidated PAT of ₹335.61 Cr.
Key positives
- Revenue reached ₹6,687.89 Cr, +9.6% YoY, accelerating from +6.6% YoY in Q1FY27.
- Data Services revenue grew 11.7% YoY to ₹5,810.99 Cr and segment result rose 35.8% to ₹425.74 Cr.
- Campaign Registry revenue increased 37.1% YoY to ₹277.76 Cr and segment result more than doubled to ₹162.03 Cr.
- Operating cash flow improved 63.9% YoY to ₹1,562.70 Cr in H1FY27, exceeding H1 capex of ₹1,500.69 Cr.
- Finance costs declined 2.0% YoY to ₹197.91 Cr at the consolidated level, while employee benefits expense declined 7.2% to ₹1,178.75 Cr.
Key concerns
- Borrowings increased to ₹11,854.54 Cr from ₹10,581.68 Cr at March 2026, excluding lease liabilities, increasing balance-sheet sensitivity.
- Depreciation rose 9.2% YoY to ₹740.94 Cr while PPE declined 2.9% from March 2026, warranting monitoring of asset deployment and capitalization.
- Standalone PAT declined 40.3% YoY to ₹125.86 Cr, highlighting that the consolidated rebound is being driven by subsidiaries and group businesses.
- H1FY27 included ₹142.90 Cr of exceptional charges, including ₹81.32 Cr of staff-cost optimization charges and ₹30.10 Cr of fire-related accidental-damage provision.
Research and educational content only. Not investment advice.