Tata Communications Share Price Falls Despite Macquarie's Outperform Call and Rs 2,200 Target

The Tata Communications share price declined on 27 July 2026 even after Macquarie maintained its outperform rating on the stock with a target price of Rs 2,200 per share, as the brokerage trimmed its EBITDA estimates while retaining a constructive long term outlook.

Macquarie's note on the Tata Communications share price balances near term estimate cuts against an improving structural growth story, centred on the company's digital portfolio and a focus on quality growth under its new chief executive.

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Tata Communications Share Price: Macquarie's Key Observations

While Macquarie cut its EBITDA estimates for the company, the brokerage retained a constructive outlook on the Tata Communications share price, forecasting FY26 to FY29 revenue, EBITDA and EBIT compound annual growth rates of 11 percent, 18 percent and 30 percent respectively.

Metric	Macquarie Observation
Tata Communications Rating	Outperform (maintained)
Target Price	Rs 2,200 per share
FY26-29 Revenue CAGR	11%
FY26-29 EBITDA CAGR	18%
FY26-29 EBIT CAGR	30%
ROIC Forecast	Improve to over 20% in 3 years, from low teens
CMP (27 July 2026)	Rs 1,731.90, down 2.35%

The brokerage expects growth and margin expansion to be driven primarily by the company's digital portfolio, and forecasts return on invested capital to improve from the low teens currently to over 20 percent over the next three years.

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Macquarie also flagged that a continued focus on quality growth under the company's new chief executive remains a key positive for the Tata Communications share price outlook, even as the stock declined today alongside the EBITDA estimate cut.

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Why the Stock Fell Despite an Outperform Rating

Even with a maintained outperform rating, the Tata Communications share price declined today, illustrating how near term EBITDA estimate cuts can weigh on sentiment even when the brokerage's longer term structural thesis remains intact.

On the day, Tata Communications was quoting at Rs 1,731.90, down Rs 41.70, or 2.35 percent, having touched an intraday high of Rs 1,790.15 and a low of Rs 1,731.90. Trading volumes stood at 4,877 shares, compared to the five day average of 22,448 shares, a decrease of 78.27 percent.

Conclusion

The Tata Communications share price fell despite Macquarie retaining its outperform rating with a Rs 2,200 target price, as the brokerage cut near term EBITDA estimates while maintaining a constructive multi-year growth outlook driven by the digital portfolio. Investors should consult a SEBI-registered advisor before acting on any brokerage target price.

Frequently Asked Questions FAQs

Why did the Tata Communications share price fall despite an outperform rating?

Ans. The Tata Communications share price fell 2.35 percent as Macquarie cut its near term EBITDA estimates, even while maintaining its outperform rating and Rs 2,200 target price.

What is Macquarie's target price for Tata Communications share price?

Ans. Macquarie has maintained an outperform rating with a target price of Rs 2,200 per share as of 27 July 2026.

What growth does Macquarie forecast for Tata Communications?

Ans. Macquarie forecasts FY26-29 revenue, EBITDA and EBIT CAGRs of 11 percent, 18 percent and 30 percent respectively.

What is driving Tata Communications' growth according to Macquarie?

Ans. Macquarie expects growth and margin expansion to be driven by the company's digital portfolio.

What is Macquarie's ROIC forecast for Tata Communications?

Ans. Macquarie forecasts return on invested capital to improve from the low teens to over 20 percent over the next three years.

Where can I track live Tata Communications share price updates?

Ans. Live Tata Communications share price updates, charts and financials are available on the Univest platform and app.