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EquityWireAnalyst Concall: Profitability, right portfolio mix on Tata Comm CEO's plate
Analyst Concall

Profitability, right portfolio mix on Tata Comm CEO's plate

This story was originally published at 21:17 IST on 22 April 2026
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Informist, Wednesday, Apr. 22, 2026

 

Please click here to read all liners published on this story
--Tata Comm: Our architecture is evolving fast for AI readiness 
--CONTEXT: Comments by Tata Comm management in post-earnings analyst concall 
--Tata Comm: Co entering a phase where priority will be profitable growth 
--Tata Comm CEO: Will list longer-term priorities after completing 100 days 
--Tata Comm: Hope digital portfolio breaks even at earliest 
--Tata Comm CEO: Immediate priority profitable growth, right portfolio mix 
--Tata Comm: Growth was broad-based in digital portfolio Q4 
--Tata Comm: Aim to see healthy growth in EBITDA near to medium term 
--Tata Comm: See billion dlr scope in data centre interconnectivity by 2030 
--Tata Comm: Registered strong forex benefit in Jan-Mar 
--Tata Comm CEO: Happy to see number of proof of concepts co is engaging in 
--Tata Comm CEO: Want to grow employee interaction suite 
--Tata Comm: Seeing good deal wins on Unified Communications as a Service 

 

By Ashutosh Pati and Shakshi Jain

 

MUMBAI – Tata Communications Ltd.'s newly appointed Chief Executive Officer Ganesh Lakshminarayanan Wednesday said his immediate priorities are profitable growth for the company and getting the portfolio mix right. In the near to medium term, the focus will also be on improving the profitability of the digital product portfolio and accelerating the high margin products, he said in the post-earnings conference call with analysts.

 

"We believe we are entering a phase where we will prioritise profitable growth. As we evaluate the strategic choices, our focus on disciplined capital allocation will continue. So as a management team...immediate priority is ensuring continuity in strategy, strengthening the execution momentum, and delivering profitable growth," Lakshminarayanan said. He will make sure the company's digital products break even quickly and is also prioritising on improving the earnings before interest, tax, depreciation, and amortisation of the company.

 

When asked about long-term plans, Lakshminarayanan said he wants to complete 100 days in office before outlining such plans. "...I will come and talk about FY27. Definitely want to come and talk about our long-term priorities immediately after that," he said.

 

 

The company plans to achieve this as it has some new products which are high on profitability such as multi-cloud connect and employee interaction. "Within the digital portfolio, some of the highly profitable products like employee interactions, we continue to see traction," he said. Tata Communications' architecture is evolving fast in the artificial intelligence-led transformation. The company has all the "ingredients" to help clients with AI assistance, Lakshminarayanan said.

 

"We have the Commotion platform which can help them (clients) build the voice AI solution. We have the Multicloud Connect platform to make sure that those AI agents can connect with all the enterprise data they need. We have the Connectivity platform to make sure that all the insurance branches can make use of those AI agents," he said. Lakshminarayanan added that for AI to work effectively, employees need constant training. He feels the company's sales team needs to be trained to be able to explain its large AI portfolio. "We need to be able to not just talk about individual towers of our product, how we can deliver outcomes for them," he said.

 

The company is seeing good traction in Commotion AI and also Multicould Connect and is reporting great number of proof of concepts. Tata Communication has also had good deal wins in Unified Communications as a Service. Lakshminarayanan sees the data centre-to-date centre connectivity as a "billion dollar" opportunity in India by 2030. "The number of data centers coming out in India is going to only explode," he said. He also wants to build the company's employee interaction suite.

 

The company had reported consolidated net profit of INR 2.63 billion for the March quarter, down 28% sequentially. Its revenue was up around 6% at INR 65.54 billion. The company had broad based growth in its digital portfolio in the March quarter. It also registered strong forex benefit due to the depreciation in rupee in Jan-Mar.

 

The company declared its March quarter earnings after market hours. Wednesday, shares of Tata Communications closed 0.8% higher at INR 1,525 on the National Stock Exchange.  End

 

Edited by Akul Nishant Akhoury

 

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