Key Events This Week
Apr 20: Stock opens at Rs.1,515.00, down 0.40%
Apr 22: Q4 FY26 results reveal 74.7% profit plunge despite revenue growth
Apr 23: Intraday high of Rs.1,604 with 5.06% surge; mojo grade upgraded to Hold
Apr 24: Intraday low of Rs.1,497.40 amid price pressure; valuation metrics improve
Monday, 20 April 2026: Modest Opening Decline Amid Flat Market
Tata Communications Ltd began the week at Rs.1,515.00, down 0.40% from the previous Friday’s close of Rs.1,521.05. The decline was modest and in line with the broader market, as the Sensex slipped 0.02% to 35,814.68. Trading volume was moderate at 12,341 shares, reflecting cautious investor sentiment ahead of the company’s quarterly results announcement later in the week.
Wednesday, 22 April 2026: Quarterly Results Reveal Revenue Growth but Profit Plunge
On 22 April, Tata Communications reported its Q4 FY26 financial results, showing a significant 74.7% plunge in net profit despite record revenue growth. The company posted net sales of ₹6,554.15 crores, its highest quarterly figure, and operating profit (PBDIT) of ₹1,283.93 crores, marking a positive shift in operational efficiency. However, net profit after tax fell sharply to ₹251.54 crores, down 16.8% from the previous four-quarter average, highlighting margin pressures and other cost factors weighing on the bottom line.
This mixed financial performance was reflected in the stock’s price action, which rose 0.73% to close at Rs.1,524.55 on the day, outperforming the Sensex’s 0.23% decline. The improved revenue and operating profit metrics contributed to a cautiously optimistic market reaction despite the profit setback.
Thursday, 23 April 2026: Intraday Surge to Rs.1,604 Amid Strong Trading Momentum
Tata Communications Ltd delivered a standout performance on 23 April, surging 3.74% to close at Rs.1,581.60, with an intraday high of Rs.1,604 representing a 5.06% intraday gain. This rally was driven by strong quarterly revenue gains and an upgrade in the company’s mojo grade from Sell to Hold by MarketsMOJO, reflecting improved fundamentals and valuation appeal.
The stock’s advance notably outpaced the Sensex, which declined 0.78% to 35,729.71, underscoring Tata Communications’ relative strength amid a broadly bearish market. Technical indicators showed the stock trading above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term momentum. However, longer-term moving averages remained resistance points, indicating the rally was part of a transitional phase rather than a full breakout.
Despite the positive price action, technical momentum remained mixed, with bearish MACD readings on weekly and monthly charts and neutral RSI signals. The stock’s valuation also improved, with P/E and P/BV ratios moving towards more attractive levels relative to peers, supporting the recent mojo grade upgrade.
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Friday, 24 April 2026: Sharp Intraday Decline Amid Market and Sector Weakness
The week ended on a weaker note for Tata Communications Ltd, with the stock falling 3.96% to close at Rs.1,518.95 after touching an intraday low of Rs.1,497.40. This 5.0% intraday drop reflected profit-taking and broader market pressures, as the Sensex declined 1.06% to 35,349.66 and the telecom sector faced headwinds amid bearish sentiment.
Technical indicators on the day showed the stock trading below its 5-day, 50-day, 100-day, and 200-day moving averages, signalling short-term weakness despite some support above the 20-day average. Momentum indicators remained mixed, with mildly bullish MACD weekly readings but bearish monthly trends, and neutral RSI signals. The stock underperformed both its sector peers and the Sensex, highlighting immediate selling pressure.
Valuation metrics continued to improve, with the company’s P/E ratio at 40.52 and P/BV at 13.08, levels considered attractive relative to historical norms and competitors. Operational returns remained solid, with ROCE at 13.57% and ROE at 32.28%, supporting the company’s premium valuation despite recent price volatility.
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Daily Price Comparison: Tata Communications Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-04-20 | Rs.1,515.00 | -0.40% | 35,814.68 | -0.02% |
| 2026-04-21 | Rs.1,513.50 | -0.10% | 36,091.30 | +0.77% |
| 2026-04-22 | Rs.1,524.55 | +0.73% | 36,009.59 | -0.23% |
| 2026-04-23 | Rs.1,581.60 | +3.74% | 35,729.71 | -0.78% |
| 2026-04-24 | Rs.1,518.95 | -3.96% | 35,349.66 | -1.06% |
Key Takeaways
Positive Signals: Tata Communications demonstrated resilience by outperforming the Sensex over the week despite a slight price decline. The company’s quarterly revenue and operating profit reached record highs, signalling robust demand and operational efficiency. The mojo grade upgrade from Sell to Hold and improved valuation metrics, including a more attractive P/E ratio relative to peers, reflect a cautiously optimistic outlook. The intraday surge on 23 April to Rs.1,604 highlighted strong trading momentum and relative sector strength.
Cautionary Signals: The sharp 74.7% plunge in net profit despite revenue growth underscores ongoing margin pressures and cost challenges. The stock’s technical indicators remain mixed, with bearish MACD and Bollinger Bands suggesting underlying downward momentum. The intraday decline on 24 April amid broader market weakness and sector headwinds indicates vulnerability to profit-taking and external pressures. Longer-term returns lag the Sensex, and the stock remains below key longer-term moving averages, signalling resistance to sustained upward trends.
Conclusion
Tata Communications Ltd’s week was characterised by a complex interplay of strong operational gains and bottom-line challenges, reflected in a marginal weekly price decline of 0.14% against a 1.31% drop in the Sensex. The company’s record quarterly revenue and operating profit growth, combined with improved valuation metrics and a mojo grade upgrade, provide a foundation for cautious optimism. However, the significant net profit contraction and mixed technical signals counsel prudence. Investors should monitor upcoming earnings and market developments closely to assess whether the recent momentum can be sustained amid sector and macroeconomic uncertainties.
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