Tata Communications has agreed to acquire a 51% stake in Commotion Inc., a US-based AI-native Enterprise SaaS platform, for Rs 227 crore to accelerate AI integration across its digital offerings.

The integration aims to automate complex workloads and deliver personalized experiences at scale, leveraging Voice AI, an Agentic AI Builder, and Omnichannel Journey Orchestration to improve back-end operations.

Commotion’s CEO Murali Swaminathan is optimistic that the deal will unlock AI’s full potential across sectors and enable scalable, responsible AI solutions.

In Q2FY26, Tata Communications posted revenue of Rs 6,100 crore, up 6.4% year-on-year, while net profit declined 19% to Rs 183 crore, signaling margin pressures and ongoing cost challenges.

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Notable customers cited include Blue Dart, SpiceJet, HCL, Tata Elxsi, Venkys, and YOU Broadband, illustrating deep enterprise penetration in connectivity, cloud, and digital solutions.

Market context shows Tata Communications stock up about 17% over the past 13 weeks to around Rs 1,851, still roughly 18% below its October 2024 high, with a year-to-date gain near 8% and underperforming the Nifty 50.

Following the announcement, the stock traded up around 2% from its intraday low, with a price near Rs 1,823 and a market cap of about Rs 51,950 crore.

Tata Communications positions itself as a global digital ecosystem enabler backed by a wide subsea cable network to support secure, scalable, and interconnected enterprise operations.

Strategically, the move aims to transform Tata Communications into a broader digital solutions provider spanning Network, Cloud, Security, Interaction, IoT, and Media, serving diverse enterprise sectors.

The deal signals growing AI interest in India’s tech and telecom sectors, with local players investing in AI platforms to stay competitive globally.