Tata Comm shares up 4% post Q1 results: Should you buy, sell or hold?

Tata Communications' consolidated net profit for the quarter ending June 30, 2025, stood at ₹190 crore, a 43 per cent drop from ₹333 crore recorded in Q1FY25

Tata Communications share price today: Shares of Tata group's telecom and network services provider, Tata Communications, climbed 4 per cent on Friday, July 18, 2025, recording an intraday high of ₹1,813.10, after the company announced its results for the first quarter of the financial year 2025-2026 (Q1FY26).

 

At 10:35 AM, shares of Tata Communications were trading at ₹1,785.90, up by 3.14 per cent on the National Stock Exchange. In comparison, Nifty struggled to trade in the green territory, down by 156 points or 0.62 per cent, quoting 24,954.85. At the time of writing this report, around 2.2 million shares had changed hands on the counter, cumulatively, on the NSE and BSE. 

 

Tata Communications Q1FY26 earnings

Tata Communications' consolidated revenue stood at ₹5,960 crore, marking a decent increase of 6.6 per cent year-on-year (Y-o-Y). Data revenue also surged 9.4 per cent Y-o-Y, to ₹5,130 crore for the quarter under review, despite macroeconomic turbulence on the global front. The company's Ebitda margin improved by 30 basis points (bps) and stood at 19.1 per cent. "Despite ongoing macroeconomic headwinds and continued pressures across the industry, we delivered a stable performance this quarter, with a healthy double-digit growth in our order book and modest uptick in margins," said  A.S. Lakshminarayanan, managing director and CEO of Tata Communications. 

 

However, the company's consolidated net profit for the quarter ending June 30, 2025, stood at  ₹190 crore, a 43 per cent drop from ₹333 crore reported in the corresponding quarter of the previous fiscal year.

 

That apart, the company's earnings before interest, taxes, depreciation and amortisation (Ebitda) figure remained flat at ₹1,137 crore. Ebitda margins experienced a drop of 125 bps from 20.3 per cent in Q1FY25 to 19.1 per cent in Q1FY26.

Tata Communications stock: Buy, sell or hold?

The company's first quarter performance (for FY26) remained largely subdued, as per analysts, with declining data margins. However, digital portfolio revenue was up 3 per cent quarter-on-quarter (Q-o-Q) at ₹2,510 crore. Motilal Oswal has issued a 'Neutral' rating on the Tata group stock.

 

Meanwhile, Religare has issued a 'Hold' rating on the stock with a target price of ₹2,000 from the current market price (CMP) of ₹1,785.   

 

"Tata Communications is looking good at the current trading price. The last few sessions have also witnessed active volume spikes within a tight range, indicating accumulation for a breakout. On the technical chart, the price action is transitioning from a lower highs to a higher highs structure. A fresh position can get triggered once the stock sustains above the ₹1,800 level for the target of ₹1,950-₹2,000 with the risk managed at ₹1,710," said Ravi Singh, SVP retail research at Religare Broking.