Tata Communications Shares Reach 2-Month High Following Strong Q4 Earnings

Tata Communications Posts Strong Q4 Performance, Shares Surge 5.6%

Tata Communications' shares reached a two-month high of ₹1,609 apiece on Thursday, April 23, following a positive reaction from investors to the company's March quarter performance. The company's Q4 performance was marked by steady growth in data revenue, driven by acceleration in digital portfolio growth and an increase in core connectivity.

In the quarter ended March 2026, the company reported a 11.5% year-over-year (YoY) and 6% quarter-over-quarter (QoQ) growth in data revenue. Consolidated gross revenue grew 9.4% YoY and 6% QoQ to ₹6,550 crore in Q4, meeting analysts' estimates. The Data Services segment, which accounts for the bulk of total revenue, stood at ₹5,704 crore, up from ₹5,121.55 crore in the same period last year.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at ₹1,284 crore, a 14.4% increase from ₹1,122 crore in Q4 FY25. EBITDA margins rose to 19.6%, 90 basis points higher than the 18.7% recorded in the March 2025 quarter. However, the company reported a consolidated net profit of ₹263 crore, down 65.44% from ₹761 crore in the same period last year, primarily due to a higher tax outgo.

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Analysts at Motilal Oswal Financial Services noted that the company's order book remains strong, with healthy double-digit YoY growth, driven by large deal wins in international markets. The deal pipeline remains robust, with the digital portfolio contributing around 70%. JM Financial also observed that the company's order book grew strongly in double digits YoY in Q4 FY26, supported by multiple deal wins across various data business segments.

Tata Communications is now entering a third phase focused on profitable growth and capital discipline, following two phases of achieving balance sheet discipline and investing in digital capabilities. Management aims to improve execution while maintaining strategic continuity. Analysts at JM Financial have retained their 'Buy' rating on the stock with a target price of ₹1,980 per share, while Motilal Oswal has retained its 'Neutral' rating with a revised target price of ₹1,720.