Tata Communications, the telecommunications subsidiary of the Tata Group, has reported its financial performance for the fourth quarter of fiscal year 2024-25 (Q4 FY25). The company's share price is currently trading at ₹1,587.50, reflecting a decline of 0.62%. In this quarter, Tata Communications achieved a 6% year-on-year increase in revenue from operations, reaching ₹5,990.35 crore, compared to ₹5,645.07 crore in the same quarter of the previous year. This growth was primarily driven by a 9.8% rise in revenue from its core data services segment.
For the full financial year, Tata Communications posted a total revenue of ₹23,238 crore. The consolidated net profit for Q4 FY25 witnessed a remarkable 115% surge, climbing to ₹761.17 crore from ₹354.57 crore in the corresponding quarter last year. However, this substantial jump in net profit was significantly aided by one-off gains, including ₹577 crore from the sale of a Chennai land parcel to an associate company, and an additional gain of ₹311 crore from selling its entire stake in Tata Communications Payments Solutions. Without these exceptional items, profit margins were noted to have narrowed compared to the preceding October-December period.
Moreover, the quarterly growth was also driven by higher demand for its data services, as Tata Communications provides services such as data connections and cybersecurity to enterprises. The company plans to raise its capital expenditure to over $300 million in FY26, up from an estimated $265–270 million in FY25. The increased spending will prioritize core growth areas such as undersea cables and cloud platforms, while maintenance costs will remain capped at under 2% of revenue.
Despite the higher investments, Tata Communications targets expanding pre-tax profit margins to 23–25% over the next two years, up from 19.8% in Q4 FY25. The firm is also restructuring its operations and monetizing non-core assets to focus on cloud, networking, media, and entertainment services. In January, the company announced its ambition to double revenue to ₹28,000 crore by FY27. However, Chief Financial Officer Mr. Kabir Shaikh indicated that the company is expected to defer on this goal, with an updated timeline set to be announced during the upcoming investor day.
Additionally, the firm is considering stake dilution in a loss-making foreign subsidiary, which reported a ₹105 crore loss on ₹33 crore revenue in FY25. The board has recommended a final dividend of 250 per cent, or ₹25 per share, for the financial year ended March 31, 2025. This final dividend is contingent on approval from the company's shareholders at the upcoming Annual General Meeting.
On Tuesday, April 22, 2025, shares of Tata Communications Ltd settled 1.48 percent higher at ₹1,598.70 on the Bombay Stock Exchange (BSE), ahead of the results announcement. The stock reached an intraday high of ₹1,617 apiece. Despite rising over two percent in the past month, the shares have shed eight percent year-to-date.
In other financial news, global insurer Chubb has announced its financial results for the first quarter of 2025, reporting a net income of $1.33 billion. This performance was impacted by total pre-tax net catastrophe losses of $1.64 billion, which included $1.47 billion from the California wildfires. This year’s total pre-tax net catastrophe losses were significantly higher compared to the $435 million reported in the same period last year, driven by the costly wildfire outbreak in January.
Total after-tax net catastrophe losses in Q1 2025 were $1.30 billion, translating to $3.21 per share. Chubb also reported favorable prior period development of $255 million pre-tax and $204 million after-tax, compared to $207 million and $168 million, respectively, in the first quarter of 2024. The company’s Property and Casualty (P&C) underwriting income reached $441 million, with a combined ratio of 95.7%.
Excluding catastrophe losses, P&C current accident year underwriting income rose by 12.2% year-over-year to $1.83 billion, resulting in a combined ratio of 82.3%. P&C net premiums written increased by 3.2%, or 5.0% on a constant dollar basis, to $10.93 billion. Evan G. Greenberg, Chairman and Chief Executive Officer of Chubb Limited, commented: “We had a good first quarter that was overshadowed by the significant catastrophe losses we incurred from the California wildfires. We produced $1.5 billion in core operating income, supported principally by excellent underlying underwriting results, double-digit growth in investment income and growing life insurance income.”
In North America, P&C insurance was up 3.4%, to $6.6 million, with growth impacted by two one-time items: reinstatement premiums related to the California wildfires in personal insurance and unusually large structured transactions written in the prior year in commercial insurance. Greenberg noted, “Our income and premium revenue this quarter were impacted by foreign exchange due to a strong dollar, which has since weakened considerably.”
He added: “In terms of the commercial P&C underwriting environment, large account admitted and E&S property continued to grow more competitive while casualty is firm and responding to the loss-cost environment.” Excluding one-time items, North America P&C insurance grew by 6.4%, including a 10.1% increase in personal insurance and a 5.3% rise in commercial insurance.
Overseas General net premiums written increased by 1.8%, or 6.5% in constant dollars, to $3.9 million, with consumer insurance growing by 5.0% and commercial insurance by 7.3%. Overall, Chubb’s net premiums were $12.6 million, a 3.5% increase compared to the $12.2 million reported in Q1 2024. Pre-tax net investment income was $1.56 billion, up 12.2%, and adjusted net investment income was $1.67 billion, up 12.7%. Annualized return on equity (ROE) was 8.2%, while annualized core operating return on tangible equity (ROTE) stood at 13.0% and annualized core operating ROE was 8.6%.
Greenberg concluded: “In sum, I have confidence in what we can control, and I expect we will continue to grow operating income and EPS at a double-digit rate, CATs and FX notwithstanding.”
Finally, Emirates Islamic Bank has also reported strong financial results for the first quarter of 2025, with net profits jumping to AED 1 billion from AED 811.44 million in Q1 of 2024. The bank's earnings per share (EPS) increased to AED 0.18 as of March 31, 2025, compared to AED 0.14 in the year-ago period. Emirates Islamic recorded total operating income valued at AED 1.44 billion in Q1 of 2025, an annual rise from AED 1.34 billion. Total assets amounted to AED 123.35 billion in Q1 of 2025, compared to AED 111.12 billion a year earlier.
Hesham Abdulla Al Qassim, Chairman of Emirates Islamic, commented: “The bank successfully issued a $750 million Senior Unsecured Sukuk in Q1-25. This successful benchmark issue reflects the increasing recognition of Emirates Islamic among the global investor community, evidenced by over $1.60 billion of demand from local and international investors.”
