Tata Communications Limited · NSE:TATACOMM
Tata Communications — Investor Presentation (2025)
30 slides from Tata Communications's investor presentation, 2025
Slide 1: Corporate Presentation FY26
CORPORATE PRESENTATION FY26
Slide 2: Safe Harbour
SAFE HARBOUR Certain words and statements in this presentations concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications expected financial position, business strategy, the future development of Tata Communications’ operations, are forwa
Slide 3: We Are Tata Communications
WE ARE TATA COMMUNICATIONS USD 2.9 Bn $5.3 Bn+ Transforming Enterprises FY25 Revenues Market Cap Through our Digital Fabric 2,00,000+ km 5,00,000+ km We are part of India’s multibillion- extensive terrestrial fiber round-the-globe sub-sea dollar conglomerate, the prestigious optical fiber Tata Group
Slide 4: Our Transformation Over the Years
OUR TRANSFORMATION OVER THE YEARS Inception and Streamlining and Growth and Value Unlocking Expansion Phase Consolidation Innovation 2002: Tata Group acquires 2016: Sold 74% of 2019: Surplus land 2023: Acquired 100% Switch 25% stake in VSNL (India) data center biz to STT GDC, transfer to HPIL; to in
Slide 5: Financial Performance in a Snapshot
FINANCIAL PERFORMANCE IN A SHAPSHOT Cumulative FY21-FY25 Robust value Reinvested to Creating long term creation compound returns shareholder value EBITDA FCF generated Cash CAPEX Total shareholder returns 8,700+ 21,000+ 7,200+ 6X M&A: ~3000 Switch, Kaleyra, Oasis All figures in INR Crore
Slide 6: Our Fit to Grow Model in Place
OUR FIT TO GROW MODEL IN PLACE CAGR CAGR FY21 FY22 FY23 FY24 FY25 FY21 – FY25 FY23 – FY25 Revenue 17,100 16,725 17,838 ` 20,785 23,109 7.8% 13.8% Voice 2,791 2,286 2,054 1,699 1,633 -12.5% -10.8% Data 12,599 12,779 14,096 17,161 19,513 11.6% 17.7% Core Connectivity 8,911 9,038 9,556 10,129 10,410 4.
Slide 7: Our Growth Trend Over the Years
OUR GROWTH TREND OVER THE YEARS Data revenue mix CAGR: Total Revenue 7.8%, Data 11.6% 23,109 20,785 17,838 17,100 16,725 29% Total revenue 19,513 17,161 71% 12,779 14,096 Data 12,599 revenue FY21 FY21 FY22 FY23 FY24 FY25 INR 1,499 Cr. Incremental Revenue : INR 5,415 Cr. INR~7,000 Cr FY25 Inorganic i
Slide 8: Digital Portfolio Growth Journey
DIGITAL PORTFOLIO GROWTH JOURNEY CAGR 25% 19% 19% 38% 49% 25% FY21-FY25 9,103 FY21-FY25 Incremental Revenue 2,628 928 888 502 3,688 470 Collaboration & Vayu Cloud & Next Generation Media MOVE & IoT CIS Security Connectivity FY21 Digital Portfolio FY25 Digital Portfolio FY25 4,480 1,777 932 1,285 630
Slide 9: Corporate Actions: Focus on Asset Optimization
CORPORATE ACTIONS : FOCUS ON ASSET OPTIMIZATION Actions taken Positive outcomes delivered • Increasing investments: • Reposition assets to drive value creation o FY25 Cash CapEx = 1.3x FY20 Cash CapEx • Continuous evaluation of non-core business • Raised INR 1400 Cr + via non-core monetization o Mon
Slide 10: Empowering enterprises with our Digital Fabric
Empowering enterprises with our Digital Fabric
Slide 11: The Digital Fabric Enabling Enterprises in the Hyperconnected Ecosystem
THE DIGITAL FABRIC ENABLING ENTERPRISES IN THE HYPECONNECTED ECOSYSTEM Characteristics of a hyperconnected ecosystem Digital Fabric enabling customer needs such as Real time Borderless growth Superior experiences & innovation Always ON – anywhere ON Digital Fabric increasing Productivity & relevance
Slide 12: What Is Driving Demand for Our Digital Fabric
WHAT IS DRIVING DEMAND FOR OUR DIGITAL FABRIC Emerging Trends & Opportunities Network Cloud & Security • Convergence of Network & Security, Wired & Wireless • Hybrid, complex cloud landscape – Private + Public + Purpose • Cloud Networking category due to rising complexity/cost built clouds, increasi
Slide 13: Our Deepening Digital Fabric Capability Is Increasing Our Addressable Wallet
OUR DEEPENING DIGITAL FABRIC CAPABILITY IS INCREASING OUR ADDRESSABLE WALLET Typical Large Enterprise ICT Spend Our Expanded SAM Telephony, Communications Data centre Public Cloud Infra Contact Centre, 10% 19% 20 M UCC18 M Management Messaging (SMS, Management Network (Cloud, Branch, WhatsApp, RCS,
Slide 14: Our Services Are Well-Diversified Across Industries
OUR SERVICES ARE WELL-DIVERSIFIED ACROSS INDUSTRIES Automobiles & Manufacturing 13% BFSI OTT 20% 15% IT & ITeS Top domains and Media contribution to Enterprise 19% revenues in FY25 8%
Slide 15: Capability Evolution: Infrastructure to Integrated Solutions
CAPABILITY EVOLUTION: INFRASTRUCTURE TO INTEGRATED SOLUTIONS Infrastructure only Infrastructure + software Infra + software + services Services & orchestration Infrastructure Infrastructure software software Core Core Core infrastructure infrastructure infrastructure • IZOTM multi cloud connect Netw
Slide 16: Our Relevance with Customers Is Increasing
OUR RELEVANCE WITH CUSTOMERS IS INCREASING +16 FY25 Mn-dollar customer added (#) 10 Mn + 5 - 10 Mn 1 - 5 Mn Total FY21 14 26 172 212 FY25 30 35 225 290 Rising customer relevance Net promoter score Experience center engagement 82 Remain in the top quartile 150+ CXO and decision makers visits (#) Annu
Slide 17: Execution and Ambition
ap TATA COMMUNICATIONS TATA Execution and Ambition
Slide 18: Capital Allocation Enabling Capacity
CAPITAL ALLOCATION ENABLING CAPACITY Key investments Sustenance Digital Customer success based Maintenance CAPEX, capped Fabric tool Bespoke investments which and reviewed closely Cable can be leveraged across deals AI cloud: capacity GPUs expansion on Kaleyra.ai key routes DC to DC connectivity cap
Slide 19: Capacity creation will drive Earnings Power and Margin Expansion
Capacity creation will drive Earnings Power Margin Expansion
Slide 20: Data EBITDA Margin Drivers
DATA EBITDA MARGIN DRIVERS DATA REVENUE 84% OF TOTAL REVENUES Core connectivity Digital platforms • Revenue momentum and operating • Margin protection leverage o Cost management programs FY25 DATA EBITDA margin: • Cost synergy programs for Kaleyra and o Deal qualification - focus on high 18.7% Switc
Slide 21: Digital Portfolio EBITDA Margin Journey
DIGITAL PORTFOLIO EBITDA MARGIN JOURNEY Destination Double digit Milestone 2 margins Low single digit: Milestone 1 4%-6% EBITDA breakeven FY25 EBITDA: INR: -886 Crores DIGITAL EBITDA EBITDA margin: -9.7% >1,500 Crores On the journey to add 2,300 Crores+ in EBITDA
Slide 22: Relentless Focus on Execution
RELENTLESS FOCUS ON EXECUTION Product, marketing & Strategic projects Culture sales excellence Product excellence Bring the Digital Fabric alive Shifting behaviors • Innovation and scaling: Stage 0-1-3 • Digital Fabric tooling • TCX : single pane of glass • AI embedding in digital fabric Simplificat
Slide 23: Earning Power - On a Rise
EARNING POWER - ON A RISE Relevance New market & new Transformation strategy opportunities engine # of $10 Mn and $5 Mn Addressing local Value led growth through customers increasing champions multi fabric deals Wider portfolio, Improving NPS Platformisation Increased SAM Higher share of wallet Larg
Slide 24: Headwinds and Tailwinds in Operations
HEADWINDS AND TAILWINDS IN OPERATIONS Tailwinds Headwinds AI, machine learning & data analytics Rebalancing of trade and reconfiguration driving higher bandwidth demand of supply chain Surge in data centres → demand for DC to Investment hesitation & slower expansion DC connectivity Data localisation
Slide 25: Our Assets Continue to Outweigh Our Liabilities
OUR ASSETS CONTINUE TO OUTWEIGH OUR LIABILITIES Value unlocking in real estate Investments in data center Contingent AGR liability Monetization of net operating Other contingent liabilities losses
Slide 26: We Remain Steadfast in Our Ambition
WE REMAIN STEADFAST IN OUR AMBITION EBITDA margin: 23 – 25% ROCE: >25% Data revenues Growth break-up (INR Crores) FY28 28,000 One-third of • Strategic bets incremental • Capability Shift revenue FY27 Existing services FY25 FY23 19,513 14,096
Slide 27: Prioritizing Strategic Product Bets Across Fabrics
TO ACCELERATE AND DEMONSTRATE VALUE, WE ARE PRIORITIZING 5 STRATEGIC PRODUCT BETS ACROSS FABRICS Network fabric Cloud fabric IZOTM Unified Vayu AI Cloud Cloud Network Digital Fabric Tool Security fabric Interaction fabric SASE Kaleyra.ai
Slide 28: Our Focus on People, Planet and Community Continues
OUR FOCUS ON PEOPLE, PLANET AND COMMUNITY CONTINUES PROJECT NANNEER ESG: Highlights in FY25 7% reduction in scope 1 & scope 2 GHG emissions Added 21 Mn units of renewable energy 3.4 Mn tonnes of GHG emissions avoided for customers 81,000 volunteering hours by employees Marching towards our goal of c
Slide 29: Share Price Journey
SHARE PRICE JOURNEY Top 10 Equity Shareholders as TATA COMMUNICATIONS SHARE PRICE of 31st March 2025 HDFC Mutual Fund – HDFC Mid Cap Opportunities Fund FY23-FY25 return : 27% First Sentier Investors ICVC - Stewart Investors Asia Pacific Leaders Sustainability Fund Rekha Jhunjhunwala 3/28/2025, Gover
Slide 30: Thank You
<p ‘(ATA COMMUNICATIONS TATA ( THANK YOU