Update shared on 12 Dec 2025
Analysts have modestly raised their price target on Tata Communications to ₹2,073.70. This reflects slightly higher long term profitability expectations and a marginal uptick in assumed valuation multiples, despite only minor adjustments to growth and discount rate assumptions.
What's in the News
- Partners with Real Madrid CF and Footballerista Mobile to launch the Madridista Premium loyalty programme in India, targeting over 22 million fans and 11 official fan clubs with a highly localised, digital engagement experience (client announcement).
- Announces a strategic partnership with NiCE to integrate Tata Communications Kaleyra's AI-powered Customer Interaction Suite with the CXone Mpower CX AI platform, enabling intelligent, automated, and hyper personalised contact centre experiences across more than 190 countries and territories (client announcement).
- Launches an industry first Voice AI platform powered by agentic AI, offering sub 500 millisecond multilingual speech to speech customer interactions, real time analytics, and templatised solutions for fintech and BFSI enterprises (product related announcement).
- Wins a multi crore mandate to build end to end digital infrastructure, including network, IoT, cloud, and security, for the newly established Goods and Services Tax Appellate Tribunal benches across India, supporting the government’s GST dispute resolution framework (client announcement).
- Schedules a board meeting on October 15, 2025 to consider and approve unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, along with the statutory auditors’ limited review reports (board meeting notice).
Valuation Changes
- Fair Value: Unchanged at ₹2,073.70, indicating no revision to the analyst fair value estimate.
- Discount Rate: Risen slightly from 12.76 percent to approximately 12.97 percent, reflecting a modestly higher required return.
- Revenue Growth: Essentially unchanged, easing marginally from about 9.39 percent to 9.38 percent.
- Net Profit Margin: Risen very slightly from about 9.73 percent to 9.73 percent, indicating a minimal improvement in margin expectations.
- Future P/E: Increased modestly from roughly 27.9x to 28.1x, implying a small uplift in the assumed valuation multiple.
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