Tata Communications Share in focus After $152 Million India-Singapore Subsea Cable Investment

Tata Communications shares traded lower on Tuesday. The move came after the telecom major announced a $152 million investment to expand its subsea cable infrastructure between India and Singapore, aiming to meet the growing demand for AI, cloud computing and enterprise connectivity.

As of 2:00 pm, Tata Communications shares were down 1.62% at ₹1,961.20 on the NSE. Despite the day's decline, the stock has gained around 17% over the past one year.

The company will invest $63 million in the Malaysia, India, Singapore Transit (MIST) cable system connecting Mumbai and Singapore during FY27. It will also invest $89 million in Project CS, a new subsea cable linking Chennai and Singapore, between FY27 and FY31. Both projects will be funded through internal accruals.

The expansion will add 98 Tbps (terabits per second) of subsea cable capacity, including 20 Tbps on the Mumbai-Singapore route through the MIST cable system and 78 Tbps on the Chennai-Singapore route through Project CS.

The MIST cable system is expected to be ready for service in the fourth quarter of FY27. Project CS is expected to be ready for service in the fourth quarter of 2029. Both cable systems will be upgraded over time as demand increases.

The company said the India-Singapore route is expected to become one of the world's key digital corridors, carrying enterprise, cloud and hyperscaler traffic between India, Southeast Asia and global markets. The additional capacity is expected to improve network resilience, low-latency connectivity and support the next phase of enterprise digital transformation.

The new cable systems will be integrated with Tata Communications' terrestrial fibre network, providing connectivity to more than 100 data centres across India. They will also strengthen the company's Tata Global Network (TGN), allowing enterprises to access data centre and multi-cloud connectivity through its IZO platform.

Tata Communications currently operates around 270 Tbps of global subsea network capacity, of which nearly 172 Tbps is already lit. Its global network spans more than 500,000 kilometres of subsea optical fibre and over 200,000 kilometres of terrestrial fibre.

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For the quarter ended March 2026, Tata Communications reported consolidated revenue from operations of ₹5,990 crore, up 6.1% year-on-year. Net profit stood at ₹1,040 crore, compared with ₹326 crore a year ago, supported by an exceptional gain from the sale of its stake in TCPSL.

Genius Wong, Executive Vice President – Core and Next-Gen Connectivity Services and Chief Technology Officer at Tata Communications, said the investments are aimed at strengthening the company's digital infrastructure as demand for AI-driven services continues to grow.