Tata Communications shares in see-saw trade post Q3 earnings, here's what brokerages say
Tata Communications stock rose 2.59% to Rs 1659.50 in early deals. At 10:24 am, the stock was trading 2.50% lower at Rs 1577.15.
- Jan 22, 2026,
- Updated Jan 22, 2026 10:31 AM IST
Shares of Tata Communications rose over 2% in early deals on Thursday after firm announced its Q3 earnings. Tata Communications stock rose 2.59% to Rs 1659.50 in early deals. Market cap of the firm stood at Rs 44,913 crore. At 10:24 am, the stock was trading 2.50% lower at Rs 1577.15. The stock is in see-saw trade in trading today.
JM Financial sees an upside of 39% in the stock after Q3 results. It has a price target of Rs 2,250.
"We maintain our BUY rating on TCOM (unchanged TP of INR 2,250/share) based on 11x FY27 EV/EBITDA multiple for the data segment, (in line with 5-year historical average) as we expect data segment EBITDA to grow at a robust CAGR of 22% over FY25-28E," said the brokerage.
Nuvama said the Q3 earnings were decent. Digital business growth was good. The brokerage announced a price target of Rs 2100 on the stock.
"However, its pace of margin expansion (in Data business) leaves a lot to be desired as it chases break-even in Digital business. We are cutting FY26E/27E EBITDA by -4.2%/-5.6% on lower margins. Maintain ‘BUY’ with a TP of Rs 2,100 (earlier Rs 2,235) as we roll forward to FY28," said Nuvama.
Motilal Oswal has a price target of Rs 1790, an 11% upside to the previous close of Rs 1619. It has a neutral rating on the Tata Group stock.
"The order book remains strong with healthy double-digit growth YoY (and QoQ), driven by large deal wins in core connectivity. The funnel remains robust with digital portfolio contribution at 70%," said MOSL.
The company also announced Ganesh Lakshminarayanan (ex-CEO, Airtel Business –India) as the MD and CEO designate. He will assume the role of MD and CEO after the current MD’s retirement in April 2026.
Tata Communications reported a 55% year-on-year rise in Q3 consolidated net profit. Profit attributable to equity shareholders came at Rs 365 crore in the last quarter compared with Rs 236 crore in the year-ago period.
Revenue rose 7% YoY to Rs 6,189 crore in Q3 FY26 against Rs 5,798 crore a year earlier. Data revenue climbed 9.3% to Rs 5,359 crore in Q3 from Rs 4,903 crore in the corresponding quarter last year.
Total expenses rose to Rs 5,914 crore in Q3 compared with Rs 5,807 crore in Q2 FY26 and Rs 5,441 crore in Q3 FY25, translating into a 2% QoQ and 9% YoY increase. Key cost components included network and transmission expenses, employee benefits and finance costs.
Shares of Tata Communications rose over 2% in early deals on Thursday after firm announced its Q3 earnings. Tata Communications stock rose 2.59% to Rs 1659.50 in early deals. Market cap of the firm stood at Rs 44,913 crore. At 10:24 am, the stock was trading 2.50% lower at Rs 1577.15. The stock is in see-saw trade in trading today.
JM Financial sees an upside of 39% in the stock after Q3 results. It has a price target of Rs 2,250.
"We maintain our BUY rating on TCOM (unchanged TP of INR 2,250/share) based on 11x FY27 EV/EBITDA multiple for the data segment, (in line with 5-year historical average) as we expect data segment EBITDA to grow at a robust CAGR of 22% over FY25-28E," said the brokerage.
Nuvama said the Q3 earnings were decent. Digital business growth was good. The brokerage announced a price target of Rs 2100 on the stock.
"However, its pace of margin expansion (in Data business) leaves a lot to be desired as it chases break-even in Digital business. We are cutting FY26E/27E EBITDA by -4.2%/-5.6% on lower margins. Maintain ‘BUY’ with a TP of Rs 2,100 (earlier Rs 2,235) as we roll forward to FY28," said Nuvama.
Motilal Oswal has a price target of Rs 1790, an 11% upside to the previous close of Rs 1619. It has a neutral rating on the Tata Group stock.
"The order book remains strong with healthy double-digit growth YoY (and QoQ), driven by large deal wins in core connectivity. The funnel remains robust with digital portfolio contribution at 70%," said MOSL.
The company also announced Ganesh Lakshminarayanan (ex-CEO, Airtel Business –India) as the MD and CEO designate. He will assume the role of MD and CEO after the current MD’s retirement in April 2026.
Tata Communications reported a 55% year-on-year rise in Q3 consolidated net profit. Profit attributable to equity shareholders came at Rs 365 crore in the last quarter compared with Rs 236 crore in the year-ago period.
Revenue rose 7% YoY to Rs 6,189 crore in Q3 FY26 against Rs 5,798 crore a year earlier. Data revenue climbed 9.3% to Rs 5,359 crore in Q3 from Rs 4,903 crore in the corresponding quarter last year.
Total expenses rose to Rs 5,914 crore in Q3 compared with Rs 5,807 crore in Q2 FY26 and Rs 5,441 crore in Q3 FY25, translating into a 2% QoQ and 9% YoY increase. Key cost components included network and transmission expenses, employee benefits and finance costs.