Tata Communications Limited confirmed on June 25, 2026, that the overall business impact from a fire incident at a leased premise in New Delhi has not been material. The company activated its business continuity protocols immediately following the event at Next-Gen Tower, Greater Kailash-1, to maintain service continuity and minimise disruptions to customers served from the data centre facility at this location. A majority of the data for affected customers has been successfully recovered, with only limited cases requiring further validation and rebuilding.

Incident Overview

The fire occurred at a company which has leased Tata Communications 's premises at Next-Gen Tower, Greater Kailash-1, New Delhi 110048. Key details of the incident and its impact are summarised below:

Data Recovery and Customer Impact

The company stated that a majority of the data of the customers who were affected has now been successfully recovered. While some customers faced temporary operational disruption due to the time required to recover critical systems, others with resilient multi-location architectures experienced no disruption. Tata Communications continues to work closely with affected customers on recovery efforts.

Financial and Operational Continuity

Tata Communications maintains that its operations continue unaffected. The company has adequate insurance coverage to address any potential financial impact or liabilities arising from the incident.

CLSA has maintained its Outperform rating on tata communications , setting a target price of ₹2,600. The brokerage's stance is underpinned by a combination of strong digital-services-led growth momentum, improving financial health, and a strategic leadership focus on closing the margin gap with industry peers.

Digital Services Growth and Business Scale

A key highlight in CLSA's assessment is the robust performance of Tata Communications' digital services segment, which has recorded 20% YoY growth. The brokerage also notes that the company's data business has achieved a scale comparable to Airtel Business, positioning it as a significant player in the enterprise connectivity and digital services landscape.

Financial Health and Strategic Leadership

CLSA points to improving cash flows and comfortable leverage as additional pillars supporting its positive outlook on the stock. The brokerage further highlights that the company's new CEO is focused on driving profitable growth, a strategic priority that is expected to help narrow the wide margin gap that currently exists between Tata Communications and its peers.

Key Highlights from CLSA's Assessment

• Outperform rating maintained with a target price of ₹2,600
• 20% YoY growth recorded in digital services
• Data business scale described as comparable to Airtel Business
• Improving cash flows and comfortable leverage noted as financial positives
• New CEO's focus on profitable growth identified as a catalyst to bridge the margin gap versus peers

Overall, CLSA's maintained Outperform rating reflects confidence in Tata Communications' digital transformation trajectory, financial stability, and leadership-driven strategy to improve profitability relative to industry benchmarks.