Shares of Tata Communications Ltd (NSE: TATACOMM) surged 5.6% to ₹1,792, emerging among the top gainers on the NSE, following synergy buzz within the Tata Group after Tata Consultancy Services (TCS) announced plans to develop a 1 GW AI-driven data center capacity over the next 5–7 years.
Tata Communications, which already operates a strong data connectivity and cloud infrastructure network, is seen as a key beneficiary of this expansion. Analysts believe that:
- Tata Communications’ extensive land bank could be leveraged by TCS for building these large-scale data centers in India, offering potential monetisation of surplus land.
- The DC-to-DC (data center-to-data center) connectivity business could see a major boost, aligning with Tata Communications’ existing global data solutions portfolio.
- TCS management also hinted at synergies with other Tata Group companies during the Q2 earnings call, reinforcing expectations that Tata Communications may play a pivotal role in this AI and data center ecosystem.
Meanwhile, TCS shares were down 0.4% at ₹3,049.90 after reporting its Q2 FY26 results post-market hours on Wednesday. The IT giant posted a 3.7% YoY rise in revenue to ₹65,799 crore, with EBIT at ₹16,565 crore and margins expanding to 25.2%. However, net profit declined 5.4% sequentially to ₹12,075 crore, prompting a mixed reaction from investors.
TCS also outlined a $6–7 billion capex plan for its data center expansion, with 150 MW capacity to be commissioned within 18 months, supported by a financial investor.
At the time of writing, Tata Communications shares were trading 5.6% higher at ₹1,792, compared to a previous close of ₹1,696.80.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to consult a professional before making investment decisions.
