Key Financial Figures - Consolidated (₹ crore)
Income Statement Highlights:
- Income from operations: ₹6,582.82 (Q1 FY27) vs ₹5,959.85 (Q1 FY26) - 10.5% YoY growth
- Other income, net: ₹12.94 (Q1 FY27) vs ₹17.10 (Q1 FY26)
- Total income: ₹6,595.76 (Q1 FY27) vs ₹5,976.95 (Q1 FY26)
Expense Breakdown:
- Network and transmission expenses: ₹3,144.09 (Q1 FY27) vs ₹2,729.07 (Q1 FY26)
- Employee benefits expenses: ₹1,239.73 (Q1 FY27) vs ₹1,217.77 (Q1 FY26)
- Finance costs: ₹185.90 (Q1 FY27) vs ₹176.53 (Q1 FY26)
- Depreciation and amortization: ₹739.44 (Q1 FY27) vs ₹665.69 (Q1 FY26)
- Other expenses: ₹968.86 (Q1 FY27) vs ₹876.20 (Q1 FY26)
- Total expenses: ₹6,278.02 (Q1 FY27) vs ₹5,665.26 (Q1 FY26)
Profitability Metrics:
- Profit before exceptional items: ₹317.74 (Q1 FY27) vs ₹311.69 (Q1 FY26)
- Exceptional items (loss): ₹(106.36) (Q1 FY27) vs ₹(20.44) (Q1 FY26)
- Profit before tax: ₹211.38 (Q1 FY27) vs ₹291.25 (Q1 FY26) - 27.4% decline
- Tax expense: ₹86.01 (₹116.06 current tax, ₹(30.05) deferred tax) (Q1 FY27)
- Profit after tax: ₹129.72 (Q1 FY27) vs ₹190.14 (Q1 FY26) - 31.8% decline
- Attributable to equity holders: ₹134.23 (Q1 FY27) vs ₹189.98 (Q1 FY26)
Segment Performance - Consolidated (₹ crore)
Revenue by Segment:
- Voice Solutions: ₹381.95 (Q1 FY27) vs ₹394.54 (Q1 FY26)
- Data Services: ₹5,703.58 (Q1 FY27) vs ₹5,151.72 (Q1 FY26) - 10.7% growth
- Transformation Services: ₹194.59 (Q1 FY27) vs ₹224.01 (Q1 FY26)
- Real Estate: ₹51.99 (Q1 FY27) vs ₹52.04 (Q1 FY26)
- Campaign Registry: ₹258.70 (Q1 FY27) vs ₹189.38 (Q1 FY26) - 36.6% growth
Segment Results:
- Voice Solutions profit: ₹20.61 (Q1 FY27) vs ₹37.38 (Q1 FY26)
- Data Services profit: ₹250.56 (Q1 FY27) vs ₹239.29 (Q1 FY26)
- Transformation Services profit: ₹44.38 (Q1 FY27) vs ₹43.28 (Q1 FY26)
- Real Estate profit: ₹28.01 (Q1 FY27) vs ₹28.24 (Q1 FY26)
- Campaign Registry profit: ₹147.14 (Q1 FY27) vs ₹122.93 (Q1 FY26)
Standalone Financial Results (₹ crore)
- Income from operations: ₹1,838.59 (Q1 FY27) vs ₹1,823.02 (Q1 FY26)
- Profit before tax: ₹138.93 (Q1 FY27) vs ₹168.07 (Q1 FY26)
- Profit after tax: ₹104.45 (Q1 FY27) vs ₹136.29 (Q1 FY26)
- EPS (basic): ₹3.66 (Q1 FY27) vs ₹4.78 (Q1 FY26)
Exceptional Items Details
Consolidated Exceptional Items (₹ crore):
- Staff cost optimization charges
- Actuarial valuation reversal of ₹18.52 crore for gratuity and long-term compensated absences
- Provision for losses from fire incident at third-party data center
- Provision for contractual obligation recoverability
- Total exceptional loss: ₹106.36 crore (Q1 FY27)
Standalone Exceptional Items (₹ crore):
- Staff cost optimization: ₹(7.62)
- Statutory impact of new Labour Codes: ₹11.93 (reversal)
- Accidental damages: ₹(2.65)
- Provision for contractual obligation: ₹(50.00)
- Total exceptional loss: ₹48.34 crore (Q1 FY27)
Contingent Liabilities and Legal Matters
AGR License Fee Demands:
- Received 'Show Cause-cum Demand Notices' from DoT totaling ₹7,844.57 crore for FY2005-06 to FY2024-25
- ₹7,513.71 crore disclosed as contingent liability (net of provision of ₹54.18 crore)
- ₹276.68 crore considered remote (disallowance of deductions for three years)
- Company believes it can defend its position based on legal opinions
Foreign Subsidiary Tax Litigation:
- Subsidiary received VAT assessment of ₹167.26 crore and penalty of ₹195.27 crore (total ₹362.53 crore)
- Appeal filed with Economic Administrative Court, resolution pending
- Amount disclosed as contingent liability
Discontinued Operations
- On April 22, 2025, the Group sold its remaining stake in a foreign subsidiary (previously under Data Services segment)
- Loss on sale of subsidiary: ₹42.19 crore (recognized in Q1 FY26)
Key Ratios and Metrics
Consolidated Ratios:
- Operating Margin: 11.06% (Q1 FY27) vs 5.98% (Q1 FY26)
- Net Profit Margin: 5.68% (Q1 FY27) vs 7.48% (Q1 FY26)
- Interest Service Coverage: 5.15 times (Q1 FY27) vs 5.45 times (Q1 FY26)
Standalone Ratios (as at June 30, 2026):
- Asset Coverage Ratio: 1.08 times
- Debt Equity Ratio: 0.48
- Current Ratio: 0.58 times
- Net Worth: ₹10,670.37 crore
Management Commentary
From the press release: MD & CEO Ganesh Lakshminarayanan stated the company started the year well with strong growth across core and digital portfolios. Normalized EBITDA performance remains strong, and the company stays on track to deliver double-digit EBITDA growth in FY27. Focus areas include accelerating network fabric business growth, expanding platform revenues, improving digital profitability, and strengthening EBITDA-to-cash conversion.
Digital Portfolio Performance
- Digital Portfolio Revenue: ₹2,940 crore (Q1 FY27) vs ₹2,510 crore (Q1 FY26) - 17.1% growth
- Next Generation Platforms: Growing at 31.3% YoY
- Normalized EBITDA: ₹1,281 crore with margins at 19.4%
Auditor's Review
M/s. S.R. Batliboi & Associates LLP issued a limited review report with an unmodified opinion on both standalone and consolidated financial results. The auditors highlighted the contingent liabilities related to AGR demands and foreign tax litigation but did not modify their conclusion.