Tata Communications Limited is a leading global digital infrastructure and communications services provider, offering cloud, security, networking, and collaboration solutions to multinational enterprises and service providers. Originally established as Videsh Sanchar Nigam Limited (VSNL) in 1986, it was acquired by the Tata Group in 2002 and rebranded as Tata Communications. Headquartered in Mumbai, the company operates one of the world’s most advanced fiber-optic networks, with presence in over 50 countries and partnerships with 300+ Fortune 500 companies. As of January 2026, Tata Communications is undergoing a strategic transformation—focusing on high-margin digital services while divesting legacy assets—making it a niche but high-quality bet in India’s telecom and digital infrastructure space. This article presents a data-driven outlook on the Tata Communications share price target for 2026–2030,
Tata Communications: Company Overview
- Founded: 1986 (as VSNL); acquired by the Tata Group in 2002
- Managing Director: Mr. A.S. Lakshminarayanan
- NSE Symbol: TATACOMM
- Core Segments:
- Global Network & Cloud Services (65%)
- Enterprise Collaboration & Security (20%)
- Data Center & Managed Services (15%)
- Market Position: Among India’s top 3 telecom infrastructure companies; key enabler of global digital ecosystems
Tata Communications has exited low-margin voice and consumer broadband businesses to focus exclusively on B2B digital infrastructure—aligning with global trends in cloud, AI, and secure connectivity.
Tata Communications: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹1,765 |
| Market Capitalization | ₹50,302.50 Cr |
| No. of Shares Outstanding | 28.50 Cr |
| 52-Week High / Low | ₹2,175 / ₹1,291 |
| P/E Ratio (TTM) | 42.77 |
| P/B Ratio | 4.97 |
| EPS (TTM) | ₹41.27 |
| Book Value (TTM) | ₹354.91 |
| ROE | 10.35% |
| ROCE | 10.95% |
| Dividend Yield | 1.42% |
| Face Value | ₹10 |
| Cash | ₹246.72 Cr |
| Debt | ₹3,208.50 Cr |
| Promoter Holding | 58.86% |
| Sales Growth (YoY) | –8.93% |
| Profit Growth (YoY) | 64.55% |
Note on Negative Sales Growth: The decline in revenue is due to strategic divestment of low-margin legacy businesses (e.g., domestic broadband, voice services). Underlying digital services grew 12% YoY.
Tata Communications Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹1,850 – ₹2,020 |
| 2027 | ₹1,950 – ₹2,180 |
| 2028 | ₹2,050 – ₹2,350 |
| 2029 | ₹2,150 – ₹2,550 |
| 2030 | ₹2,250 – ₹2,780 |
Tata Communications Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹1,850 | ₹2,020 |
Tata Communications reported 64.55% YoY profit growth in FY2025, driven by margin expansion in cloud and security services and cost rationalization. Despite negative sales growth (due to asset pruning), underlying profitability is strong. Trading at a P/E of 42.77x and P/B of 4.97x, the stock reflects a premium valuation typical of high-quality digital infrastructure plays. A 2026 target range of ₹1,850–₹2,020 assumes continued execution of its digital pivot.
Tata Communications Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹1,950 | ₹2,180 |
If the company sustains 15–18% earnings growth and benefits from AI-driven demand for secure cloud networks, EPS could reach ₹44–₹46 by FY27. Assuming a P/E of 43–45x, the 2027 target range is justified.
Tata Communications Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹2,050 | ₹2,350 |
By 2028, benefits from global hyperscaler partnerships (e.g., AWS, Microsoft) and data center monetization should reflect in margins. A P/E of 44–46x on projected EPS of ₹46–₹49 supports the ₹2,050–₹2,350 band.
Tata Communications Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹2,150 | ₹2,550 |
Long-term tailwinds include India’s digital sovereignty push, global data localization laws, and enterprise cloud adoption. If competition doesn’t erode pricing, EPS could reach ₹49–₹52 by FY29. At a P/E of 44–47x, the 2029 target is ₹2,150–₹2,550.
Tata Communications Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹2,250 | ₹2,780 |
Over a five-year horizon, Tata Communications’ appeal lies in global digital infrastructure leadership—not volume. A terminal P/E of 45–48x on FY30 EPS (~₹50–₹54) justifies the ₹2,250–₹2,780 range.
Tata Communications: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (Tata Sons) | 58.86% |
| Domestic Institutional Investors (DII) | 19.03% |
| Foreign Institutional Investors (FII) | 13.61% |
| Public & Others | 8.50% |
High promoter holding ensures strategic alignment with the Tata Group vision. Strong institutional ownership (32.64%) reflects analyst coverage.
Tata Communications: Strengths vs Risks
Strengths:
- Global Tier-1 fiber network with strategic data centers
- Strong client base (300+ Fortune 500 companies)
- Zero exposure to the volatile Indian consumer telecom
- Consistent dividend payer (1.42% yield)
Risks:
- High P/E leaves little room for execution misses
- Debt of ₹3,208 Cr (Debt/Equity: ~0.9x) limits aggressive capex
- Legacy asset sales may cause short-term revenue volatility
- Intense competition from Bharti Airtel and global players (NTT, Lumen)
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate to High |
| Ideal Time Horizon | 5+ years |
| Volatility | Higher than market average |
| Dividend/Income Potential | Moderate (1.42% yield) |
| Best For | Investors seeking exposure to India’s global digital infrastructure story |
FAQs
Is Tata Communications a good share to buy?
Yes—for long-term portfolios focused on digital infrastructure and global B2B services. Avoid if you seek low-valuation or high-growth stocks.
Is Tata Communications a listed company?
Yes. It is listed on both NSE (TATACOMM) and BSE (500470).
Which Tata share is best to buy?
- TCS: Best for quality, dividends, and stability
- Tata Motors: High growth (EV push) but volatile
- Tata Steel: Cyclical; tied to commodities
- Tata Communications: Niche global digital play
For most investors, TCS remains the safest, but Tata Communications suits thematic tech investors.
Is Tata Communications part of the Tata Group?
Yes. It is a wholly owned subsidiary of Tata Sons (58.86% promoter holding).
Is Tata Communications debt-free?
No. It has ₹3,208 Cr in debt, though manageable (Net Debt/EBITDA: ~1.8x). It is not debt-free, unlike TCS or Infosys.
Final Verdict
Tata Communications has successfully transformed into a focused, future-ready digital infrastructure company. While not a high-growth stock, its global relevance and strategic clarity offer long-term optionality.
Our Tata Communications share price target 2026–2030 (₹1,850 to ₹2,780) reflects steady earnings recovery, margin expansion, and multiple re-rating as digital monetization scales. The stock is not for conservative investors—but for those with a 5-year horizon, it offers compelling exposure to India’s global tech footprint.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Tata Communications Consolidated Page
- Finology Ticker – TATACOMM Financials & Analysis
- Groww.in – Tata Communications Stock Profile
- Tata Communications Investor Presentation (Q3 FY26, Jan 2026)
- TRAI & Ministry of Electronics & IT – National Digital Infrastructure Policy 2025
