Telecommunication Company of Iran (TCI, ticker اخابر) reported earnings per share of just 4 rials for fiscal year 1403 (the Iranian year ended around March 20, 2025) in its latest financial disclosures, a figure that at first glance looks like a sharp profitability collapse. Yet value added, operating revenue, and net profit each grew by roughly 22% that same year. The reason behind this apparent contradiction lies in a 1,555% capital increase that sharply inflated the company's registered capital and, in the same proportion, multiplied its share count, the denominator in the earnings-per-share calculation.
Background
TCI's board approved a capital increase of 1,555.4%, funded through an asset revaluation, on February 13, 2024 (24 Bahman 1402), raising the company's registered capital from 6,000 billion rials to roughly 107,645 billion rials. The deadline to execute the increase, originally August 18, 2024 (27 Mordad 1403), was later extended to September 26, 2024 (5 Mehr 1403). This sharp share dilution is why EPS for the six-month period of fiscal 1403 came in at just 1 rial, and full-year EPS reached only 4 rials, even though the company's per-share profit figures were far higher before the capital increase. A similar pattern appeared a few weeks earlier in Bank Mellat's six-month report, where Sahmino reported that the gap between two announced EPS figures (656 rials and 335 rials) traced back to the same kind of capital adjustment.
The Numbers
| Indicator | Value | Period | Source |
|---|
| Registered capital before the increase | 6,000 billion rials | Approved February 13, 2024 (24 Bahman 1402) | Nabz-e Bourse |
| Registered capital after the increase | ~107,645 billion rials | Execution deadline extended to Sept. 26, 2024 (5 Mehr 1403) | Nabz-e Bourse |
| EPS, six-month period, FY1403 | 1 rial | H1 FY1403 | Nabz-e Bourse |
| EPS, full fiscal year 1403 | 4 rials | FY ended around March 2025 | Peivast |
| Dividend approved at shareholder meeting | 40 rials per share | Meeting held July 3, 2025 (12 Tir 1404) | Nabz-e Bourse, Peivast |
| Payout ratio | ~80% | July 3, 2025 meeting | Peivast |
| Value-added, operating revenue, and net profit growth | ~22% each | FY1403 vs. prior year | Nabz-e Bourse |
| Households covered by fiber optic (FTTH) nationally | ~9.2 million households | Fall 1404 (Sept-Dec 2025) | Communications Regulatory Authority quarterly report |
| Households covered by fiber optic (FTTH) nationally | ~8.2 million households | Spring 1404 (Mar-Jun 2025) | Communications Regulatory Authority quarterly report |
Drivers
The main reason behind this confusing picture is how earnings per share is calculated after a large capital increase: net profit has grown at roughly its prior pace, but the denominator, the share count, has suddenly multiplied several times over. Even so, at the July 3, 2025 shareholder meeting, the board, citing roughly 22% growth in value added, operating revenue, and net profit, approved a 40-rial dividend per share, a payout ratio near 80%, a figure that, relative to the 4-rial EPS, still delivers a meaningful cash return to shareholders.
Alongside this accounting adjustment, TCI is also facing a public dispute over fixed-line internet pricing. Several Iranian economic outlets reported around July 2, 2026 (11 Tir 1405) that prices for some fixed-broadband packages, including a 540GB monthly plan, rose from about 650,000 tomans to nearly 2 million tomans per month, while the line-connection fee rose from 12,000 tomans to 114,500 tomans. TCI's public relations office, however, called the "100% price increase" characterization inaccurate. If this tariff increase is implemented broadly, it could ease some of the pressure that state-administered pricing has put on the company's fixed-internet revenue, but the exact scope of its implementation remains unclear.
Outlook
Alongside retained earnings and tariffs, fiber-optic (FTTH) network expansion is one of TCI's medium-term revenue growth drivers. According to the telecom regulator's quarterly reports, the number of households nationally covered by fiber optic rose from about 8.2 million in spring 1404 to about 9.2 million in fall of the same year, while the Ministry of Communications' stated target was coverage of 20 million households and businesses by the end of fiscal 1404. The wide gap between the current pace and that target suggests fiber rollout continues to lag the announced plan, a trend that, if it accelerates, could strengthen the company's broadband revenue in coming years. This is an observation based on existing statistical trends, not a profitability forecast or a recommendation to buy or sell the stock.
What to Watch
In the weeks and months ahead, watch for TCI's next Codal filings on its income statement and balance sheet, the final outcome of the fixed-internet tariff dispute, and the telecom regulator's next quarterly report on fiber-optic coverage. TCI's live share price and P/E ratio are continuously updated on the Tehran Stock Exchange trading board and should be checked at the moment of any buy or sell decision from an official source, not based on the figures in this report.
This article is for informational and educational purposes only and does not constitute a recommendation to buy, sell, or hold TCI shares. Make your own investment decisions based on a full review of official financial statements on the Codal disclosure system and consultation with a qualified professional.
Educational
Educational
Analysis
Analysis