Tata Communications commands a market capitalization of ₹51,436 Crore as of July 2025, positioning itself as a significant player in India's telecommunications and digital services sector. The company operates as a global digital ecosystem enabler, providing comprehensive connectivity and digital solutions across more than 190 countries and territories worldwide.
Tata Communications is a global digital ecosystem enabler powering today's fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables the digital transformation of enterprises globally with collaboration and connected solutions, core and next-gen connectivity, cloud hosting and security solutions, and media services. The company has evolved from its origins as a government-owned telecommunications service provider to become a comprehensive digital infrastructure solutions provider under the Tata Group umbrella.
Tata Communications Limited (previously known as Videsh Sanchar Nigam Limited) is an Indian telecommunications company. It was a government-owned telecommunications service provider before being sold to the Tata Group in 2002 under the Third Vajpayee ministry government. The company is publicly traded on both the Bombay Stock Exchange and the National Stock Exchange of India.
The company delivered exceptional financial performance in FY25, demonstrating strong growth across key metrics. Net profit of Tata Communications rose 223.91% to ₹1,040.34 Crore in the quarter ended March 2025, as against ₹321.18 Crore during the previous quarter ended March 2024. For the complete fiscal year, net profit rose 89.64% to ₹1,836.36 Crore in the year ended March 2025, as against ₹968.34 Crore during the previous year ended March 2024.
Revenue growth remained steady, with sales rising 10.60% to ₹22,988.66 Crore in the year ended March 2025, as against ₹20,784.68 Crore during the previous year ended March 2024. The quarterly revenue for March 2025 showed sales rising 6.03% to ₹5,985.40 Crore in the quarter ended March 2025, as against ₹5,645.07 Crore during the previous quarter ended March 2024.
Key financial highlights for FY25 include:
- Revenue: ₹22,989 Crore (up 10.60% YoY)
- Net Profit: ₹1,836 Crore (up 89.64% YoY)
- Q4 FY25 Net Profit: ₹1,040 Crore (up 223.91% YoY)
- Q4 FY25 Revenue: ₹5,985 Crore (up 6.03% YoY)
Tata Communications' continued investments across the full stack of our Digital Fabric — Network, Cloud, Security, IoT, and our Interaction Fabric—are now translating into stronger customer relevance and high double-digit growth of Digital revenues, bringing this vision to life. Today, digital revenues comprise nearly 50% of our portfolio, reflecting the strength of our strategy and execution.
The company's digital portfolio has shown remarkable growth momentum. Digital Portfolio revenue grew by 52.4% YoY, accounting for 46% of data revenue in Q2 FY25, while Digital Portfolio revenue grew by 51.5% YoY, accounting for 45.7% of data revenue in Q1 FY25. This consistent high-growth trajectory in digital services underscores the company's successful transformation strategy.
Tata Communications reported a 29.5% growth in its digital portfolio, driven by AI integration and strategic acquisitions. The company is shifting towards a digital platform-led model, targeting 65% digital revenue by FY28.
The stock enjoys positive analyst sentiment with 66.67% of analysts recommending a 'BUY' rating for Tata Communications. The consensus target price stands at ₹1857, a slight upside of 10.61% compared to the current price of ₹1678.8. CLSA has reaffirmed its 'Outperform' rating on Tata Communications, setting a target price of ₹2,100. The company aims to grow data revenue significantly by FY28, supported by strong enterprise demand and improving profitability metrics.
Promoter Holding: 58.9% indicates strong backing from the Tata Group, providing stability and strategic direction to the company's operations. The company recently underwent leadership changes with the official announcement made on March 14, 2025. The appointment comes following the recommendation of the nomination and remuneration committee (NRC) regarding the appointment of new leadership.
The company maintains a consistent dividend policy, with Tata Communications announced a final dividend of ₹25 per share for FY25, with a record date set for June 19, 2025. This represents a dividend yield of 1.49% and demonstrates the company's commitment to returning value to shareholders while maintaining growth investments.
The company provides network services and software-defined network platforms, such as Ethernet, SD-WAN, content delivery networks (CDNs), the internet, Multiprotocol Label Switching (MPLS), and private lines. The company's technological capabilities span multiple domains, including connectivity, cloud services, security solutions, and Internet of Things (IoT) platforms.
Recent developments include Tata Communications has integrated the TGN-IA2 submarine cable system into its network, improving Intra-Asia connectivity and enabling high-capacity data transfer for diverse applications. Such infrastructure investments strengthen the company's competitive position in the global telecommunications market.
Tata Communications represents a compelling investment opportunity in India's digital transformation story, with strong financial performance, strategic focus on high-growth digital services, and robust market position supported by the Tata Group's reputation and resources.
