Shares of Tata Communications Limited, the telecommunications service company of the Tata Group, performed exceptionally well on Friday. The company's shares witnessed a surge on the last day of the trading week, and this news came immediately after the Q1 quarterly results. While shares of most companies tend to slow down after results, Tata Communications surprised investors.
Share Jumps on Opening, Touches Upper Level During the Day
Tata Communications' share opened at ₹1700.30 on Friday morning as soon as the market opened and soon reached ₹1789.90. This surge was observed at 10:14 am. During the day's trading, its highest level was ₹1813.10, while the lowest level was recorded at ₹1700.30.
With this surge, the market capitalization of Tata Communications has now crossed ₹51000 crore. Its share closed at ₹1731.60 in the previous trading day, and today's trading saw an increase of approximately 3.36 percent or ₹58.10.
Share Performance in the Last One Year
Tata Communications' share has gone through many ups and downs in the past 52 weeks. During this period, it has touched a high of ₹2175.00 and a low of ₹1291.00. Looking at the current level, it is still some distance away from its 52-week high, but after today's surge, recovery is expected again.
The company's P/E ratio is 31.41, while the dividend yield remains at 1.40 percent. This means that the company is paying a stable dividend in proportion to its profits, and investors are getting regular income from it.
Profit Falls in Q1, but Revenue Increases
Tata Communications Limited has released the results for the first quarter of the financial year 2026. During this period, the company's net profit decreased by 42.9 percent to ₹190 crore. In the same quarter a year ago, the company had recorded a profit of ₹333 crore.
Although profits have decreased, the company's revenue earnings have increased by 6.6 percent. The company's total income in this quarter was ₹5690 crore, which was ₹5592 crore in the same quarter last year.
Better Margin is the Reason for Trust
Although the company's profit has decreased, several factors have influenced investors. Market experts say that the company's operational performance has been better and its margins have improved. Apart from this, the company's outlook (future direction) is also giving confidence to the investors.
Tata Communications has rapidly expanded in segments such as data services, cloud connectivity, and enterprise solutions. This is the reason why the company's operational income remained stable, and although investors received slightly less profit, hopes remained alive.
Hope Renewed in Investors
There is talk in the market that Tata Communications may improve its performance in the coming quarters. Especially, the company's increased focus on digital infrastructure and international data traffic is expected to increase earnings in the future.
Although profits have decreased in this quarter, stable growth in revenue and b margins have been a relief for investors. Therefore, the increase in the share price is due more to the company's future prospects than the immediate results.
The Surge Remained Strong Even in Mid-Day Trading
There was no decline in the shares of Tata Communications till noon during trading. Buyers remained consistent and there was upward pressure on the shares. Brokerage houses and investors continue to pay attention to this share, due to which it is estimated that there may be activity in it in the next few trading sessions as well.
Current Situation of the Stock Market
While Sensex and Nifty started with sluggishness on Friday and most sectors showed a decline, some selected shares like Tata Communications tried to support the market. Its तेजी also activated mid cap and large cap investors.
The company's share was not only among the top gainers of the day, but also saw good volume-based trading. This means that not only retail but also institutional investors are paying attention to it.
