Tata Communications targets: ₹2,210 calls, FY28 guide

What changed for Tata Communications

Tata Communications has been back in focus after multiple brokerage notes highlighted changes in earnings assumptions, valuation methods and target prices. The updates come alongside commentary on digital services momentum and ongoing work to resolve issues in Kaleyra and core connectivity. Several reports also reiterated the company’s FY28 guidance, which has become a key anchor for medium-term expectations.

At the same time, the market has been reacting sharply to rating changes. One update noted the stock jumped 7% after ICICI Securities upgraded its view. With several target prices in circulation, investors are tracking both the fundamentals and near-term technical levels.

SoTP targets revised as valuation and tax assumptions shift

One outlook note said the analyst tweaked FY27/28E EBITDA estimates by 1% to 2%. It also stated that a bigger EPS cut was driven by a higher effective tax rate assumption. Based on a sum-of-the-parts (SoTP) valuation, the target price was revised to ₹2,100 from ₹2,250, while the core business EV/EBITDA multiple was kept unchanged at 12x. The rating was maintained at BUY.

Another outlook update referenced a different set of changes. It said FY26/27E EBITDA was cut by 7% due to a slower ramp-up in margins. In that version, the SoTP-based target price was revised to ₹2,250 from ₹2,390, as the core business EV/EBITDA multiple was cut to 12x from 14x and the valuation was rolled forward to FY28E from Sep’27E. The rating there too was maintained at BUY.

ICICI Securities: upgrade to BUY and multiple target references

ICICI Securities featured prominently across the updates, though the target price referenced varies across snippets. One item said ICICI Securities upgraded Tata Communications from ‘Hold’ to ‘Buy’ and revised the target price to ₹1,840 from ₹1,690, after which the stock rose 7%.

Separately, another section stated ICICI Securities upgraded the stock from ADD to BUY with a target price of ₹2,000, describing it as a 24% upside from current levels. The same note said it retained estimates and valued the core business at a 12x EV/EBITDA multiple. It also pointed to progress on resolving challenges in Kaleyra and core connectivity, while keeping the growth and profitability outlook “healthy”.

Guidance spotlight: FY28 data revenue and margin targets

A key datapoint repeated in the material is Tata Communications’ guidance to achieve data revenue of ₹28,000 crore by FY28. The company also reiterated an EBITDA margin target of 23% to 25% by FY28.

These targets matter because broker models often hinge on how quickly digital services can scale and whether margins expand as expected. When analysts cut EBITDA estimates, the stated reason in one note was slower-than-expected margin ramp-up. And when EPS assumptions change more sharply than EBITDA, the cited driver was a higher effective tax rate.

Other broker calls: CLSA, Macquarie and price targets

Beyond ICICI Securities, multiple brokerage houses have cited target prices clustered around the low-to-mid ₹2,000 range. Macquarie reiterated an Outperform rating with a target price of ₹2,210 after management commentary at a non-deal roadshow.

CLSA maintained its Outperform rating on Tata Communications with a target price of ₹2,100, citing consistent growth in digital services and resilient operational performance in Q1FY26. Another CLSA reference again reaffirmed Outperform at ₹2,100 following a management interaction highlighting aggressive medium-term growth plans.

Nuvama Institutional Equities also retained a ‘Buy’ rating with a target price of ₹2,000 per share, driven by long-term growth initiatives in digital services.

Valuation and snapshot metrics cited in the material

One valuation snapshot in the text put Tata Communications’ P/E at about 32x on a trailing twelve-month basis, versus “sector 45+”. It also referenced a forward P/E of about 28x on 18% EPS growth, linked to cloud and data services expansion. The same snippet cited ROE at 55% and described the company as debt-free.

Another set of company datapoints, timestamped to Nov 11, 2025 at 04:10 PM, showed a closing price of ₹1,840.00, P/E of 31.79 and P/B of 18.41. It also listed a 52-week high of ₹2,004.00 and a 52-week low of ₹1,291.00, with market capitalisation at ₹52,440.00 crore.

Technical levels highlighted: support and resistance

The provided intraday levels flagged ₹1,860 as immediate resistance near prevailing price action, with a stronger resistance zone of ₹1,890 to ₹1,900 if momentum continued. On the downside, ₹1,835 was cited as first intraday support, while ₹1,800 was described as a key psychological level.

A separate “key levels for investors” section mentioned a buy zone of ₹1,600 to ₹1,700, a support level at ₹1,295 and resistance at ₹2,175, with a target of ₹2,000. These levels should be read as technical markers from the source material rather than fundamentals-based valuation.

Key numbers and targets at a glance

Brokerage targets mentioned

Market impact: why these updates mattered

The clearest market reaction cited was the 7% jump following ICICI Securities’ upgrade to BUY and a target price revision to ₹1,840. Such moves typically reflect how sensitive the stock can be to changes in broker stance, especially after a price correction is referenced as creating a better entry point.

On fundamentals, the material ties the investment case to digital services expansion, product launches, and a focus on full-stack AI integration. But it also records downside adjustments to EBITDA estimates, which signals that execution and margin ramp-up remain a key debate in near-term modelling.

What to watch next

From the provided information, the next checkpoints are tied to delivery against the FY28 guidance of ₹28,000 crore data revenue and 23% to 25% EBITDA margin. Broker targets also show that valuation frameworks differ, with SoTP approaches and EV/EBITDA multiples (12x and earlier 14x in one note) driving revisions.

Further updates on the resolution of challenges in Kaleyra and core connectivity, as flagged in the text, are likely to remain important inputs for both growth and profitability assumptions. Investors tracking the stock short-term are also likely to watch the cited support at ₹1,835 and ₹1,800, and resistance zones around ₹1,860 and ₹1,890 to ₹1,900.