Tata Communications Ltd. Share Price

India’s AI Compute Boom: Can Tata Communications Benefit?

Imagine an AI startup building the next big chatbot. It needs powerful GPUs but cannot afford to build its own data centre. Instead, it rents computing power from a service provider. Now imagine customers from across the world doing the same thing in India! 14 companies have successfully bid to onboard GPUs under the ₹10,372 crore IndiaAI Mission. The government is considering allowing these companies to sell computing capacity globally at commercial rates, helping them generate revenue while domestic demand develops.

(Nifty 500)** Tata Communications is worth tracking because its digital infrastructure, connectivity and cloud-related services could be relevant as AI workloads and data-centre requirements expand. However, the opportunity depends on actual business growth, execution and the company's ability to convert AI demand into profitable revenue. A growing industry does not automatically guarantee higher profits for every company. Monitor revenue growth, margins, capital expenditure, competition and valuation before drawing conclusions. AI infrastructure expansion creates opportunities, but investors should evaluate business fundamentals, execution risks, profitability and valuations before making investment decisions. Topic Tags: #TataCommunications #ArtificialIntelligence #IndiaAIMission #DataCentres #GPUCloud #Nifty500 #EquityResearch Disclaimer: This post is for educational purposes only and is not investment advice or a recommendation to buy or sell any security. The stock is discussed as a thematic example, not as a confirmed beneficiary. Investors should conduct independent research.

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Railtel secures ₹63.81 crore ncl work order.

RailTel Corporation of India Limited

has secured a work order worth ₹63.81 crore from Northern Coalfields Limited. The contract is for providing MPLS VPN connectivity for ERP implementation over five years. The order covers primary MPLS VPN connectivity to support ERP systems at Northern Coalfields. It runs for a period of five years. This adds to RailTel’s order book in the telecom and digital infrastructure space for public sector clients. The key figure is the ₹63.81 crore work order spanning five years. This supports revenue visibility for RailTel. Peers such as Tata Communications, Bharti Airtel and Power Grid may see limited direct impact as the focus is on specialised network services. Near-term prices could react positively to the order win. Risks include execution delays or lower margins on long-term contracts. Competitors listed: Tata Communications, Bharti Airtel, Power Grid. We have no financial interest in this news.

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Tata Communications: data centre plumbing at 45.9x earnings

Tata Communications Limited (NSE: TATACOMM) grew Q1 FY27 consolidated revenue 10.5% to ₹6,583 crore. Net profit fell to ₹130 crore from ₹190 crore. The stock is at ₹1,682, down from its high of ₹2,100. What happened Data Services, at 86% of revenue, delivered an EBITDA margin of 18.7%. The digital portfolio is about 50% of data service revenue. EBITDA grew 8.2% to ₹1,230 crore. Net profit fell due to a data centre fire, contractual provisions and one-time charges. Net debt stands at ₹10,400 crore, a ratio of 2.1 times EBITDA. Management guides double-digit EBITDA growth for FY27. Why it matters Over 35% of global internet traffic routes through Tata's 500,000 km subsea fibre network. It connects to 102 carrier-neutral data centres in India and 650 global PoPs. It is not a data centre operator. It is the connectivity layer between them. India's data centre capacity reached 1.75 GW by H1 2026, with $173 billion committed. Every new facility needs connectivity. My view One-time charges distort the profit. Strip them out and the operating business is growing. EBITDA grew 8.2% while revenue grew 10.5%. The network moat is real. 500,000 km of subsea fibre cannot be replicated. Tata holds a 26% stake in STT GDC and is investing in 800G wavelength technology for AI data traffic. Valuation at 45.9 times earnings is above its five-year median of 35.4 times. Debt at 2.1 times EBITDA and the profit fall remain constraints. What I am watching Q2 FY27 results, EBITDA margin above 19%, and net debt falling. On the chart, ₹1,400 is the 52-week low and ₹2,100 is the high. My stance: Accumulate near ₹1,600. The connectivity story is real and durable. Disclosure: I do not hold a position in Tata Communications Limited at the time of writing. This is not investment advice.

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Tata Communications at 50x earnings but 12x EBITDA

Tata Communications Limited trades at 49.99 times earnings against a sector near 20, but 11.8 times EBITDA. My 23 September post covered the Q1 numbers; this one covers the price. Q1 FY27 numbers (consolidated, 22 July): Revenue: Rs 6,582.82 crore, up 10.5% YoY EBITDA: Rs 1,230.14 crore, up 8.2% YoY; margin 18.7% vs 19.1% PAT: Rs 130 crore, down 43.9% YoY from Rs 232 crore after Rs 106.36 crore of exceptionals Net debt Rs 10,400 crore, 2.12 times EBITDA; DoT licence fee demand of Rs 7,513.71 crore contingent, not provided The P/E is high because PAT is thin, not because growth is rich: depreciation, interest and the exceptionals sit between EBITDA and PAT. Enterprise value is Rs 57,910 crore (market cap Rs 47,510 crore plus net debt), 11.8 times annualised Q1 EBITDA. The stated objective is double-digit reported EBITDA growth this year; Q1 did 8.2 percent. Tata Communications [][***** shares closed at Rs 1,659.33 on 1 October on StockGro (NSE Rs 1,685.50), 20 percent below the 52-week high. P/E 49.99; sector P/E 19.68. My view: hold, not a fresh entry; it replaces the 23 September levels, withdrawn on 3 October. At 11.8 times EBITDA for 8 percent growth the price assumes the guidance is met; the DoT demand is 16 percent of market cap. Holders stay into the Q2 results; the date is not yet intimated, last year it was 15 October. Fresh money waits for Q2 reported EBITDA growth of 10 percent or better at a 19 percent margin; then I turn constructive near Rs 1,650, the zone Lovelesh Sharma flagged on 3 October. My exit is a close below Rs 1,323, the 2 April low. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.

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Tata Communications shows seller exhaustion near ₹1,650

has formed a bullish engulfing candle after a steady decline, closing at ₹1,683 from an intraday low of ₹1,617. The candle has appeared near the September swing-low zone, making it a meaningful attempt by buyers to arrest the fall. The moving averages add an important layer to this setup. The 20-day moving average at ₹1,722.89 has flattened after declining earlier, while the 55-day moving average at ₹1,734.23 is still sloping down. This tells us the short-term bearish phase may be losing force, but the broader corrective trend has not yet reversed. The ₹1,723 to ₹1,734 band is therefore more than simple resistance. It is the point where price must reclaim both the flat 20-day average and the falling 55-day average. If that happens, the current bearish contraction can develop into a recovery towards ₹1,760. If price fails below this band, the engulfing candle may remain only a temporary bounce. MACD is still below its signal line and below zero, so momentum has not yet confirmed the reversal. For now, price action is leading the indicator. Tata Communications operates in enterprise connectivity, cloud, cybersecurity and digital infrastructure. Its embedded-5G collaboration with Tata Motors Passenger Vehicles for the Sierra ev adds another application for its connected-vehicle platform.

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Titagarh Rail Systems to close dormant Mermec JV

Titagarh Rail Systems Limited (TITAGARH) will discontinue its joint venture with Italy's Mermec S.p.A., closing Titagarh Mermec Private Limited. The company holds a 50% stake, 5,000 equity shares of ₹10 each, and states the closure carries zero operational or financial impact. The board approved this decision on September 7, 2026, with an AGM scheduled for September 30 to formalise related resolutions. Titagarh Mermec Private Limited was set up in 2018 to market and sell railway diagnostic and signalling systems across India and neighbouring countries. The company states the joint venture has no active material business operations or transactions, and closure requires standard regulatory approvals to proceed. A "zero financial impact" claim here is more credible than it might be for a larger, active entity, because the underlying facts support it directly, an inactive JV with no material transactions genuinely should not move any numbers when closed. This is closer to the Tata Communications tax settlement in spirit than a company using the phrase to downplay something material. What I find more informative is the pattern, not this single closure. Titagarh closing a dormant partnership while simultaneously entering an active new one with BHEL the same week points to a company actively reshaping which partnerships it maintains, keeping capital and management attention on relationships that are actually generating business. My stance: a clean, low-impact corporate housekeeping step, consistent with the company's own description. Watching the September 30 AGM for formal confirmation and any further detail on the newer BHEL joint venture's progress. I do not hold Titagarh Rail Systems Limited at the time of writing.

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