Are Tata Comm latest results good or bad?

Tata Communications has reported its financial results for the quarter ending June 2025, which reflect a mixed operational performance. The Profit Before Tax (PBT) reached Rs 336.78 crore, showing a notable growth compared to the average PBT of the previous four quarters, indicating some resilience in operations. However, the Profit After Tax (PAT) declined to Rs 238.54 crore, which is lower than the average PAT from the prior quarters, highlighting ongoing challenges in profitability.
The company also reported its lowest Earnings per Share (EPS) in the last five quarters at Rs 6.67, suggesting a reduction in earnings for shareholders. Additionally, the quarterly net sales experienced a slight decline of 0.51% compared to the previous quarter, while the consolidated net profit saw a significant drop of 81.74%.

On a more positive note, Tata Communications has improved its debt-equity ratio to 4.09 times, the lowest in the last five half-yearly periods, indicating a reduction in borrowing relative to equity capital. However, the annual operating cash flow has reached its lowest point at Rs 2,910.81 crore, continuing a downward trend over the past three years.

Overall, the financial results indicate that Tata Communications is navigating through a challenging environment, with some positive developments in debt management but ongoing difficulties in profitability metrics. The company saw an adjustment in its evaluation based on these results.