Tata Communications Ltd

- There is no explicit mention of any current or planned new fundraising through debt or equity in the transcript. - The management discusses maintaining and investing in existing stakes (e.g., 26% stake in STT Data Centres) without indicating new fundraising. - Kabir Ahmed Shakir mentioned taking an NCD (Non-Convertible Debenture) of INR 70 crore earlier, but this was presented as an existing position rather than new fundraising. - The company focuses on strategic investments in digital and AI Cloud projects but does not specify raising fresh funds via equity or debt. - They are guided by internal IRR thresholds for CapEx decisions and are balancing investments without signaling recent or upcoming major capital raises.

- Tata Communications has made strategic investments including acquiring 1,000 GPUs for its Vayu AI Cloud, with plans to invest more as utilization increases. - Current CapEx to sales ratio is around 11%-12%, expected to continue in the near term. - The company continues to invest in subsidiaries like STT Data Centre, retaining its 26% stake and making further investments. - Investments are guided by IRR thresholds aligned with ambitions of doubling revenue, achieving 23%-25% margins, and above 25% ROCE. - Tata Communications is investing in digital business products and strategic bets, focusing on AI, software-defined connectivity, programmable voice, RCS, and orchestration layers. - The company is exploring and exploiting data centre connectivity opportunities domestically and internationally. - Corporate actions, like land parcel monetization, are ongoing but separate from operational investments.

- Tata Communications is optimistic about sustaining growth rates in the coming years. - Growth is driven by market opportunities across network redesign for distributed data, AI, and workflows. - Strategic bets in digital products and AI-enabled services are in early stages but gaining good market traction. - The company targets doubling digital revenue and expects strategic bets to contribute at least 10% incremental digital revenues this year. - Core Connectivity is growing at low to mid-single digits, bolstered by data center connectivity and AI tailwinds. - Order book growth is expected to accelerate in H2 after a flattish first half due to a high base last year. - International and enterprise segments show robust order booking, with new large deals secured. - AI Cloud customer traction is strong, with further investments contingent on utilization. - Overall, Tata Communications maintains its revenue ambitions and is confident about capitalizing on growth opportunities.

- Tata Communications is optimistic about sustainable growth driven by digital business and strategic bets such as AI Cloud, Voice AI, and Digital Fabric orchestration. - Digital revenue and data portfolios show double-digit growth, expected to accelerate profitability and operating leverage over upcoming quarters. - The company anticipates at least 10% contribution from strategic bets to incremental digital revenues this year. - Enterprise order book shows double-digit QoQ growth, with robust funnel and 60% digital services contribution, indicating revenue acceleration potential in H2 FY26. - Margins may see improvement despite some near-term headwinds (e.g., Red Sea cable cuts, revised TCR comp structure), with focus on margin progression through data EBITDA growth. - ROCE currently at 15.1% is expected to improve; capex decisions are aligned to hit >25% ROCE over time. - Management remains committed to profitable growth, aiming to surpass previous margin profiles gradually while scaling new investments.

- The overall order book for Tata Communications is currently flat in the first half of FY26. - This flatness is primarily due to a high base effect from a very strong Q1 and Q2 in the previous year. - The order booking this quarter is decent, above previous years but lower than Q2 last year. - The enterprise segment order book has shown double-digit quarter-on-quarter growth. - The service provider segment order book remains somewhat static. - The OTT (Over-The-Top) order booking continues to be lumpy. - Management is confident about solid order pipelines and a robust funnel with 60% attributable to digital services. - They expect an acceleration of order book growth in H2 FY26 due to back-ended revenues from current orders. - Tata Communications is expanding coverage internationally to further increase order bookings.