Tata Communications share price target trimmed but still a 'Buy'
The domestic brokerage said the company delivered a decent performance during the quarter, with revenue coming in at Rs 6,550 crore, up 5.9 per cent quarter-on-quarter (QoQ) and 9.4 per cent year-on-year (YoY), ahead of its estimates.
- Apr 23, 2026,
- Updated Apr 23, 2026 9:12 AM IST
Tata Communications Ltd saw its target price trimmed by Nuvama Institutional Equities following its March 2025 quarter (Q4 FY26) results, although the brokerage maintained a 'Buy' rating on the stock.
The domestic brokerage said the company delivered a decent performance during the quarter, with revenue coming in at Rs 6,550 crore, up 5.9 per cent quarter-on-quarter (QoQ) and 9.4 per cent year-on-year (YoY), ahead of its estimates.
"Data revenue grew 11.5 per cent YoY, led by strong 19.2 per cent YoY growth in the Digital business," Nuvama noted. However, it added that profitability was slightly below expectations. "Consolidated EBITDA margin stood at 19.6 per cent, down 25 basis points (bps) QoQ, and below our estimates, while adjusted PAT (profit after tax) at Rs 250 crore also missed expectations."
The brokerage believes Tata Communications is entering a new phase under its current management, with a sharper focus on profitable growth, disciplined capital allocation and execution.
"While it has caught up on growth front, margin showing has left a lot to be desired. We are tweaking FY27E/28E EBITDA by -2 per cent/-2 per cent on slightly lower margin—sharper cut in PAT estimates on higher depreciation," it also said.
Nuvama retained its 'Buy' call on the stock, revising the target price to Rs 2,000 from Rs 2,100 earlier.
On the operational front, the brokerage highlighted healthy deal momentum. "Order bookings grew in strong double digits YoY during Q4, with the international order book remaining particularly robust. 70 per cent of the open funnel is driven by Digital Fabric," it stated.
Tata Communications Ltd saw its target price trimmed by Nuvama Institutional Equities following its March 2025 quarter (Q4 FY26) results, although the brokerage maintained a 'Buy' rating on the stock.
The domestic brokerage said the company delivered a decent performance during the quarter, with revenue coming in at Rs 6,550 crore, up 5.9 per cent quarter-on-quarter (QoQ) and 9.4 per cent year-on-year (YoY), ahead of its estimates.
"Data revenue grew 11.5 per cent YoY, led by strong 19.2 per cent YoY growth in the Digital business," Nuvama noted. However, it added that profitability was slightly below expectations. "Consolidated EBITDA margin stood at 19.6 per cent, down 25 basis points (bps) QoQ, and below our estimates, while adjusted PAT (profit after tax) at Rs 250 crore also missed expectations."
The brokerage believes Tata Communications is entering a new phase under its current management, with a sharper focus on profitable growth, disciplined capital allocation and execution.
"While it has caught up on growth front, margin showing has left a lot to be desired. We are tweaking FY27E/28E EBITDA by -2 per cent/-2 per cent on slightly lower margin—sharper cut in PAT estimates on higher depreciation," it also said.
Nuvama retained its 'Buy' call on the stock, revising the target price to Rs 2,000 from Rs 2,100 earlier.
On the operational front, the brokerage highlighted healthy deal momentum. "Order bookings grew in strong double digits YoY during Q4, with the international order book remaining particularly robust. 70 per cent of the open funnel is driven by Digital Fabric," it stated.