Tata Communications likely to continue with over $200 million capex in FY26

Tata Communications is likely to invest over USD 200 million in FY26, a top official said on Thursday. The Tata group company has been investing about USD 200-300 million per year for the last few fiscals.

"The capex investments would be around the same lines," its managing director and chief executive A S Lakshminarayanan told PTI, replying to a specific question on the FY26 investments.

The communications technology player, which launched a cloud offering christened "Vayu" on Thursday, invests in a slew of areas including subsea cables every year, he said.


It has been investing over USD 50 million per annum for the last three years in its cloud services business alone, the CEO said.

The company is "constantly" engaged in adding to its subsea cable network but does not announce every initiative, he said.

Apart from that, its other areas of investment include customer interaction suite and also for data centres where it has a minority stake in a joint venture, he said.

The company's executive vice president for cloud and cybersecurity services, Bhaskar Gorti, said the Vayu solution offers cost savings of up to 30 per cent as compared to competition.

The CEO said that unlike the current practice where a company has to go to multiple vendors, Vayu is an integrated offering which would lead to cost savings.

It also offers on-demand Nvidia Graphics Processing Units (GPUs) which can help accelerate AI adoption at the client end.