Archive · 23 Jul 2026
Tata Communications Q1 Earnings Miss
Tata Communications reported its earnings for the first quarter of the fiscal year 2027.
The company's revenue grew by 10.5% compared to the same period last year, but it was slightly lower than what analysts expected.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) also missed estimates.
Despite this, brokerages like JM Financial and Nuvama Institutional Equities maintained their 'Buy' ratings on the stock, although they adjusted their target prices.
The company's digital business showed growth, but there is still work to be done on improving profitability.
The stock price saw a small increase in early trading.
Tata Communications reported Q1 FY27 revenue of Rs 6,580 crore, up 10.5% YoY but below estimates.
EBITDA was Rs 1,230 crore, up 8.2% YoY but 6–7% lower than consensus.
Net debt increased to Rs 10,400 crore, and capex was Rs 660 crore.
Brokerages maintained 'Buy' ratings with adjusted target prices: JM Financial at Rs 2,260 and Nuvama at Rs 2,300.
Stock price rose 0.57% to Rs 1,770.70 in early trade.
- Who
- Tata Communications Ltd
- What
- Q1 FY27 earnings report
- When
- June quarter
- Where
- India
- Why
- To assess financial performance and future outlook
Brokerage Optimism
Earnings Shortfall
Revenue Growth
Brokerage Optimism
Brokerages highlight 10.5% YoY revenue growth as a positive sign.
Earnings Shortfall
Revenue fell short of JM Financial's estimates by 1.8%.
EBITDA Performance
Brokerage Optimism
Brokerages note potential for future EBITDA margin improvement.
Earnings Shortfall
EBITDA was 6–7% lower than consensus, with digital portfolio EBITDA margin at -6.9%.
Target Price Adjustments
Brokerage Optimism
Brokerages maintain 'Buy' ratings with adjusted target prices.
Earnings Shortfall
Target prices were reduced due to lower earnings estimates.
- Revenue
- Rs 6,580 crore (up 10.5% YoY)
- EBITDA
- Rs 1,230 crore (up 8.2% YoY)
- Net Debt
- Rs 10,400 crore
- Capex
- Rs 660 crore (10% of revenue)
- Target Price (JM Financial)
- Rs 2,260 (reduced from Rs 2,295)
- Target Price (Nuvama)
- Rs 2,300 (raised from Rs 2,000)
- Stock Price
- Rs 1,770.70 (up 0.57%)