Tata Communications , a global communications technology leader, has announced a groundbreaking partnership with Amazon Web Services (AWS) to develop an advanced AI-ready network infrastructure in India. This collaboration marks a significant milestone in the country's digital landscape, promising to accelerate the adoption of generative AI and cloud innovation across various sectors.

Strategic Network Deployment

The partnership involves the establishment of a high-capacity, resilient long-distance network that will connect three major AWS infrastructure locations in India. This network will span across Mumbai, Hyderabad, and Chennai, creating a robust backbone for AI and machine learning workloads throughout the country.

Key Highlights of the Partnership

• Next-Generation Connectivity: The network will leverage Tata Communications' state-of-the-art infrastructure to provide high-bandwidth, low-latency connections essential for AI workloads. AWS will deploy its custom network technologies on this infrastructure, ensuring industry-leading security, availability, and performance.

• AI-Powered Application Enablement: The collaboration aims to empower businesses across India to build, train, and deploy scalable AI applications, fostering innovation in sectors such as healthcare, finance, and education.

• Security and Compliance: Both companies are committed to implementing robust security measures and adhering to regulatory standards to protect data integrity and privacy.

Unprecedented Scale and Capacity

According to the official press release, this collaboration represents one of India's largest ever network deployments by Tata Communications in terms of size, scale, and bandwidth. The network will feature:

Executive Insights

Genius Wong, Executive Vice President, Core and Next-Gen Connectivity Services and Chief Technology Officer at Tata Communications, stated, "This association marks our largest ever National Long-Distance program and showcases Tata Communications' unparalleled capability to support large-capacity, complex projects requiring scaled network solutions."

Jesse Dougherty, Vice President for Network Edge Services at Amazon Web Services, expressed excitement about the collaboration, saying, "The infrastructure is designed to support the most data-intensive workloads, like 5G, generative AI, and high-performance computing. This collaboration with Tata Communications will further enable our customers in India to innovate at scale with cloud and generative AI, and drive growth in India's rapidly expanding digital economy."

Timeline and Financing

The project is expected to be completed by the end of the fiscal year 2025-26. Tata Communications plans to finance this significant infrastructure investment through internal accruals.

This partnership between Tata Communications and AWS represents a major step forward in India's digital infrastructure, positioning the country at the forefront of the AI revolution and paving the way for unprecedented innovation and growth in the tech sector.

Tata Communications has announced a revision in its financial targets and reported mixed Q1 results, while also making a significant move in the debt market.

Delayed EBITDA Margin Target

Tata Communications has adjusted its timeline for achieving a 23-25% EBITDA margin, pushing the target from FY27 to FY28. CFO Kabir Ahmed Shakir stated that this represents a delay of four to five quarters. Additionally, the company's ambitious revenue target of ₹28,000 crore by FY27 may also face a deferral.

Q1 Performance

The company reported a mixed bag of results for the first quarter:

Despite the decline in EBITDA margin and profit after tax, Tata Communications has shown resilience in its data business segment.

Growth Trajectory and Future Outlook

The CFO highlighted the company's transition from low single-digit growth five years ago to consistent double-digit growth currently. Looking ahead, expectations are high for the digital portfolio, which is projected to contribute 25-30% growth.

Tata Communications reported a healthy order book in Q1, with the financial impact expected to materialize from Q3 onwards. This suggests potential for improved performance in the latter half of the fiscal year.

Commercial Paper Issuance

In a separate development, Tata Communications has issued commercial paper amounting to ₹500 crore. The key details of this issuance are:

• Issue Date: July 17, 2025
• Redemption Date: October 16, 2025
• Face Value per security: ₹5,00,000
• Discount Rate: 5.90% p.a.
• ISIN: INE151A14180

The commercial paper has been listed on the National Stock Exchange of India Limited as of July 18, 2025.

Market Response

Investors responded positively to these developments, with Tata Communications' shares trading 1.87% higher at ₹1,764.00 on the day of the announcement.

Investor Communication

Tata Communications continues to maintain transparency with its investors. The company has made available the recording of its earnings call for Q1 FY26 results on its official website, allowing stakeholders to gain deeper insights into the company's performance and strategy.

As Tata Communications navigates through these strategic shifts and market challenges, stakeholders will be keenly watching how the company adapts to achieve its revised targets and capitalize on the growth in its digital portfolio.