ICICI Securities issued a buy rating for Tata Communication with a target price of Rs 2,130. The company showed strong Q2FY27 results, with 21.2% YoY growth in EBITDA. Digital portfolio revenue also rose by 18.6% YoY. Experts said the firm remains focused on profitable growth led by recurring and network revenues.
ICICI Securities research report on Tata Communication TCom delivered a strong Q2FY27, with 21.2% YoY growth in EBITDA and 18.6% YoY increase in digital portfolio revenue. Digital profitability improved noticeably, with EBITDA margin narrowing to negative 3.6% from negative 6.9% in Q1FY27, as the company remains focused on profitable growth led by recurring and network revenues. Two key megatrends continue to underpin superior growth prospects for TCom: 1) surging global network demand driven by expanding data centre connectivity needs, which is accelerating subsea and terrestrial cable capacity utilisation, and active investments in infrastructure capabilities. 2) AI-driven enterprise demand broadening across platforms and services, including inferencing, enterprise intelligence, and voice AI agents. Outlook We maintain our estimates with an SoTP-based target price of INR 2,130 (core business valued at 12x EV/EBITDA). Retain BUY. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Tata Communication - 1610026 - icici