Tata Communications, a Tata Group company with operations in over 190 countries and territories. In its recent stock exchanges on Wednesday, July 2, it said that it will declare its financial results for the quarter ended June 30, 2025 (Q1 FY26), on Thursday, July 17, 2025. The announcement is expected to be made after market hours, typically post 3:30 PM.

Shares of Tata Communications Ltd. rose over 3 per cent on Tuesday to hit a day’s high of Rs 1,794, outperforming broader markets.

The rally comes after global brokerage Macquarie initiated coverage on the stock with an ‘Outperform’ rating and a price target of Rs 2,300 per share shpwing a potential upside of more than 30 per cent from current levels.

Macquarie noted that Tata Communications is “enabling digital transformation for enterprises by leveraging one of the world's largest digital infrastructure networks.” In a bullish scenario, the brokerage sees the stock doubling over the next 3 years, backed by its expanding footprint in digital services and strong operating leverage.

The brokerage believes that Tata Communications’ growing digital services vertical holds substantial upside. The company is already placed in the “Leaders” quadrant across most digital service segments it operates in, indicating strong execution capabilities and future growth potential.

However, Macquarie flagged a short-term dip in the company’s return on invested capital (ROIC), which has slipped from an average of 16 per cent during FY21–FY23 to around 11 per cent in FY25. This dip, according to the brokerage, is due to the impact of recent acquisitions made to bolster its digital portfolio. Macquarie expects ROIC to rebound and cross 20 per cent by FY28, provided no further acquisitions take place — inching closer to the company's stated long-term target of 25 per cent.

Earlier this year, domestic brokerage ICICI Securities had also turned bullish on the counter, double-upgrading Tata Communications from ‘Hold’ to ‘Buy’ and raising its target price to Rs 1,840. The firm cited attractive valuations following a recent dip in the stock, which made the risk-reward equation favourable.

“The recent correction has made the stock a compelling buy at current levels,” ICICI Securities said in its note.

Out of the nine analysts tracking Tata Communications, six have a ‘’ rating, one recommends ‘Hold’, and two suggest a ‘’. Despite the recent underperformance, the stock is up just 2 per cent in 2025 so far, brokerages remain optimistic about long-term prospects, especially given the company’s push into next-generation enterprise services.

At last count, shares of Tata Communications were trading 1.87 per cent higher at Rs 1,758.10 on the NSE.