Motilal Oswal Maintains 'Neutral' on Tata Communications, Sets Target at INR 1790

• Tata Communications (TCOM) reported steady Q3 results with 9% YoY data revenue growth, driven by core connectivity and digital portfolio.
• Consolidated revenue growth was 2.2% YoY when adjusted for foreign exchange fluctuations.
• Consolidated EBITDA grew 7% YoY, but missed estimates by 3%, with margin expanding to 19.8%.
• Growth in higher-margin core connectivity and Kaleyra's seasonal strength were offset by lower contributions from Voice and TCTS.
• Motilal Oswal revised target price to INR 1,790 (from INR 1,830), valuing data business at 9.5x FY28E EV/EBITDA and voice at 5x.

Why It Matters: Motilal Oswal maintains a 'Neutral' rating on Tata Communications with a revised target price of INR 1790.