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Short-term margin overhang likely for Tata Communications stock

Achieving this will require higher capex and opex, totalling $300 million in FY25, and is projected to be at a capex-to-sales range of 10-11 per cent. By FY27

Weak Q3 show, near term growth worries for Tata Communications
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Devangshu Datta

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The management of Tata Communications presented its product-to-platform strategy and explained how it hopes to grow its new products and portfolios, and geographies. The management targets doubling of data revenue by FY27 to Rs 28,000 crore (implied 18 per cent annual revenue growth). The DPS (Digital Platform & Services) segment is likely to contribute over 60 per cent of data revenue.

Achieving this will require higher capex and opex, totalling $300 million in FY25, and is projected to be at a capex-to-sales range of 10-11 per cent. By FY27, Tata Communications hopes to hit an operating profit

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First Published: Jun 14 2024 | 8:36 PM IST

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