Tata Group stocks jump after announcement of acquiring 51% stake in US-Based AI firm for $25.5 Million

Synopsis:
Shares moved higher after a subsidiary agreed to acquire a majority stake in a US-based AI customer engagement firm for USD 25.5 million. The deal boosts automation and personalisation capabilities, even as recent quarterly results showed steady revenue growth but pressure on profit margins.

The shares of a prominent telecommunications company gained up to 2 percent from its intraday low after the company’s subsidiary entered into a purchase agreement with Commotion Inc to acquire a 51 percent stake on a fully diluted basis.

With a market capitalisation of Rs 51,949.80 crore, the shares of Tata Communications Ltd were trading at Rs 1,822.80 per share, decreasing around 0.41 percent as compared to the previous closing price of Rs 1,837.55 apiece.

Acquisition

According to the filings,  Tata Communications (Netherlands) B.V. (‘TCNL’), a wholly-owned subsidiary of Tata Communications Limited, has entered into a Stock Purchase Agreement with Commotion, Inc. (a US-based company), to acquire a 51 percent stake on a fully diluted basis.

The acquisition is strategically aimed at strengthening Tata Communications’ customer engagement capabilities by integrating advanced agentic AI and orchestration tools. Completed fully in cash at about USD 25.5 million, the deal will enhance intelligent automation and personalization across customer interactions, improving service efficiency, scalability, and long-term competitiveness in digital solutions.

Commotion, Inc. operates in the high-growth AI-led customer engagement space, offering voice AI, omnichannel automation, and autonomous digital agents. While its FY24 revenue of just USD 118,750 reflects an early-stage scale, its technology focus on real-time personalisation and automation positions it well for future enterprise adoption and strategic growth.

Financial Highlights

The company reported steady topline growth with revenue rising 6.4 percent year-on-year to  Rs 6,100 crore in Q2FY26. However, profitability came under pressure as net profit declined 19 percent to  Rs 183 crore, indicating margin stress, higher costs, or near-term operational challenges impacting bottom-line performance.

Tata Communications highlights its transformation into a full-stack digital solutions provider. Spanning Network, Cloud, Security, Interaction, IoT, and Media, the portfolio reflects a strong focus on enterprise connectivity, digital transformation, and next-generation customer engagement technologies.

The customer base reflects a strong mix of large enterprises across logistics, aviation, manufacturing, retail, and digital services. This diversity highlights deep penetration in mission-critical connectivity, cloud, and communication solutions. The customer portfolio features leading brands such as Blue Dart, SpiceJet, HCL, Tata Elxsi, Venkys and YOU Broadband, reflecting strong enterprise adoption across logistics, aviation, IT, manufacturing, and digital services.

Tata Communications is a leading global digital ecosystem enabler, powering enterprises with network, cloud, security, IoT, and collaboration solutions. Backed by one of the world’s largest subsea cable networks, it helps businesses digitally transform, scale securely, and connect seamlessly across international markets.

Written by Abhishek Singh

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