Shares of Tata Communications Ltd have rallied sharply, rising 26% from their 52-week low of ₹1,293, recorded on March 4 this year. By the afternoon session today, the stock was trading around ₹1,632, pushing the company’s market capitalization to approximately ₹46,524 crore. On the Bombay Stock Exchange (BSE), a total of 2,668 shares changed hands, contributing to a turnover of ₹44.69 crore.
Technically, the stock is performing well on several fronts. It is currently trading above its 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day moving averages. However, it still trails behind the 150-day and 200-day moving averages.
Global brokerage CLSA has maintained an Outperform rating on the stock and revised its price target upward to ₹2,100 from ₹2,070. The brokerage cited the company’s digital growth strategy as a key driver of future performance. CLSA expects the firm to achieve consolidated EBITDA and data revenue CAGRs of 10–15% by FY28, projecting a robust long-term growth trajectory.
In contrast, Centrum Broking has lowered its price target to ₹1,618 from ₹1,713, maintaining a Reduce rating. While acknowledging the potential for a 22% EBITDA margin in the near term, the brokerage has trimmed its FY26E/FY27E EPS estimates by 10.3% and 3.9%, respectively. Centrum continues to value the stock at an unchanged EV/EBITDA multiple of 8.5x based on March 2027 projections.
Meanwhile, JM Financial has set a target price of ₹2,030. The brokerage is bullish on Tata Communications’ transition toward becoming a full-fledged CommTech company — blending traditional connectivity solutions with digital innovation. JM Financial notes that the firm’s strengths in its digital segment provide a distinct competitive edge. While it warns of regulatory risks, particularly concerning 5G spectrum allocation and market competition from players like Bharti Airtel and Jio, it remains optimistic about the company’s strategic direction and long-term resilience.
Tata Communications operates in three primary business segments: Voice Solutions (VS), Data and Managed Services (DMS), and Real Estate (RE). The VS segment covers international and national long-distance voice services. The DMS segment includes corporate data transmission, VPN, signaling and roaming services, and television-related network offerings. The RE segment pertains to lease rentals from premises provided on lease, excluding properties held for capital gains.
