Q4 Results Buzz Lifts Tata Comm Shares by 1.8%, But It's Still 27% Off 52-Week High; Time to Buy?

Tata Communications share price jumped slightly on Monday, April 22, ahead of its highly anticipated Q4 financial results for the quarter ended March 31, 2025. Shares of Tata Communications jumped as much as 1.8% intraday to trade at Rs 1,603 on the National Stock Exchange (NSE), as investors are looking forward to improved digital business performance in the fourth quarter of FY25.

TATA Communication Share Price Today

At the start of the trading session, Tata Communications shares opened at Rs 1,584, slightly higher than the previous close of Rs 1,573. While the stock has gained some momentum recently, it still remains nearly 27% below its 52-week high of Rs. 2,175, which was recorded in September 2024.

According to ICICI Securities, which has issued a 'BUY' rating on the stock with a target price of Rs. 1,840, "Tata Communications is likely to report 1.7% quarter-on-quarter (QoQ) revenue growth, buoyed by increasing traction in its digital and enterprise services verticals. The broking also expects a 13 basis points (bps) improvement in EBITDA margin, taking it to 20.5% in Q4 Q4FY25."

Centrum Broking, on the other hand, remains cautious and has maintained a 'REDUCE' rating on Tata Communications with a slightly lower target price of Rs 1,713, citing valuation concerns and near-term margin headwinds.

Tata Communications Q4 Results: What to Expect

Tata Communications will announce its Q4 results today, along with any dividend if approved. The company, in an exchange filing on 10th April, informed, "Pursuant to Regulations 29(1)(a) and 50(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that a Meeting of the Board of Directors of Tata Communications Limited ('the Company") is scheduled to be held on Tuesday, April 22, 2025, to inter alia consider, approve and take on record the Standalone and Consolidated Audited Financial Results along with the Reports of Statutory Auditors thereon for the financial year ended March 31, 2025, and to recommend dividend, if any, for the financial year ended March 31, 2025."

Market experts believe Tata Communications' digital transformation strategy is beginning to show results. The company's data services business is expected to post a QoQ growth of 4% and a year-on-year (YoY) growth of 9.5%, reflecting strong enterprise demand and higher utilisation of digital platforms.
However, some analysts also flag concerns about margin compression, as the product mix shifts more towards digital services, which tend to have relatively lower margins in early phases. As a result, EBITDA margin may see a minor 5 5bps QoQ dip. On a consolidated level, EBITDA is expected to grow 2.4% sequentially.

About Tata Communications

Tata Communications Limited is a leading global digital ecosystem enabler and a part of the prestigious Tata Group, one of India's largest and most respected business conglomerates. Headquartered in Mumbai, Tata Communications operates a Tier-1 network that spans across more than 190 countries and territories, offering seamless and secure connectivity solutions.

Formerly known as VSNL (Videsh Sanchar Nigam Limited), the company was renamed Tata Communications in 2008. In recent years, the company has aggressively expanded its digital services portfolio, focusing on edge computing, AI-based solutions, and secure network architecture to meet the demands of modern enterprises as per company's data.

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