The communications services provider now aspires to realise this guidance by financial year 2028, instead of the earlier guidance of achieving it by financial year 2027.
Additionally, the management has also guided for double-digit EBITDA margins in its digital portfolio over a period of time, compared to the EBITDA loss of ₹900 crore that it had reported in financial year 2025.
At its investor day, the management highlighted various initiatives and opportunities they see in monetising the company’s digital product pipeline.
Tata Communications’ management also highlighted that the focus on inorganic growth via Merger & Acquisitions, along with divestment of non-core assets will continue to remain a key focus area for the company.
Brokerage firm Nuvama wrote in its note that the deferral in guidance was largely along expected lines as the ask rate for the company to achieve the projected figures by financial year 2027 was getting too steep.
Despite the delay in guidance, Nuvama continues to see Tata Communications as an exciting play that offers the best of both worlds, one being stability of the telecom sector, along with the growth potential of the IT sector.
Nuvama has a “buy” recommendation on Tata Communications with a price target of ₹2,000. The price target implies a potential upside of 15% from Tuesday’s closing levels. Nuvama’s price target is the second-highest on the stock, after CLSA’s ₹2,100.
Out of the eight analysts that have coverage on Tata Communications, five of them have a “buy” rating on the stock, one has a “hold” rating, while two have a “sell” recommendation.
Shares of Tata Communications also ended at the lows of the day on Tuesday, ending 0.8% lower at ₹1,730.1. The stock as risen 10% in the last one month.
First Published: Jun 11, 2025 7:07 AM IST
