Tata Communications shares rise 30% from 52-week low: Three triggers for the Tata Group stock

Shares of Tata Communications Ltd have gained 30% from their 52 week low in five months. The Tata Group stock fell to a 52-week low of Rs 1323 on April 2, 2026. The appointment of Ganesh Lakshminarayanan as a CEO on May 20, 2026 has boosted investor sentiment in the stock. Announcements of major strategic expansions such as subsea cable system enhancements to meet escalating AI-driven enterprise bandwidth demands also attracted investors to the stock. 

On June 30 this year, Tata Communications announced strategic investments in subsea cable infrastructure via acquisition of significant fiber capacity, to strengthen its connectivity solutions between the emerging AI hubs of Mumbai and Chennai in India and Singapore, Asia’s leading cloud and AI ecosystem. These investments were aimed at addressing the growing bandwidth and AI-driven data demands of enterprises across Asia and further extension globally.   In the current session, Tata Communications stock rose 1.14% to Rs 1714. Market cap of the firm stood at Rs 48,851 crore. Total 9947 shares of the firm changed hands amounting to a turnover of Rs 1.70 crore on BSE today. Tata Communications shares are trading higher than the 20-day, 30 day, 50-day, 100-day, 150 day, 200-day but lower than the 5 day and 10 day moving averages. 

Brokerage JM Financial kept its price target unchanged at Rs 2260. It reiterated a Buy call on the stock, especially post the recent correction in the stock price. It expects robust 20% EBITDA CAGR over FY26–29E, led by strong growth in digital portfolio and improvement in overall EBITDA margin from current 20% to 22% by FY29.

"We believe Tata Communications (TCOM) offers multiple triggers led by gradual improvement in profitability of its digital portfolio, the structural opportunity in India’s DC-to-DC connectivity market, and potential monetisation of its 26% stake in STT’s India data centre business. We expect TCOM’s digital portfolio to achieve EBITDA breakeven by FY28 and ~5% margin by FY29 through operating leverage, acquisition synergies and a superior product mix, supported by the new CEO's clear near-term emphasis on profitable growth. Hence, we expect the digital portfolio segment to deliver EBITDA of Rs 860 crore in FY29 versus an annualised EBITDA loss of Rs 800 crore; driving EBITDA swing of Rs 1650 crore by FY29," said JMFL.  

"However, CMP continues to reflect scepticism on this turnaround given the slow pace of EBITDA margin improvement so far, providing favourable riskreward if the new CEO’s focus on profitable growth drives faster improvement. Furthermore, its strong positioning in DC-to-DC connectivity could fasten core connectivity growth to 6–7% (from 2–3%) and drive robust EBITDA growth, while monetisation of the STT stake could unlock meaningful value," said the brokerage. 

About Tata Communications

Tata Communications is engaged in the business of providing international telecommunications services. The company’s segments include Voice Solutions (VS), Data and Managed Services (DMS) and Real Estate (RE). The VS segment includes international and national long distance voice services. The DMS segment includes corporate data transmission services, virtual private network signaling and roaming services, television, and other network and managed services. The RE segment includes lease rentals for premises given on lease and does not include premises held for capital appreciation.