Tata Communications acquires 51% stake in Commotion Inc; shares trade in green

Shares of Tata Communications gained 0.7% on Tuesday morning after the company announced a major acquisition in the field of AI enterprise solutions. The company’s shares traded 0.7% higher at ₹1,841 apiece on the NSE at 9:15 am.

The exchange filing read, Tata Communications, a leading global communications technology player, today announced that it has acquired a 51% stake in Commotion Inc., a leading AI-native Enterprise SaaS Platform company with operations in the US and India.

This acquisition marks a significant step in accelerating AI integration across Tata Communications’ Digital Fabric offerings, particularly within its Customer Interaction Suite, which includes Tata Communications Kaleyra, to deliver contextual and converged AI-driven experiences for both customers and employees.

Commotion’s orchestration engine will integrate with Kaleyra’s core components — including channels, Kaleyra TX Hub, and CCaaS — to automate and intelligently guide end-to-end customer journeys, shifting engagement from reactive responses to predictive and generative interactions.

Acquiring Commotion and integrating its capabilities into its Digital Fabric will further accelerate Tata Communications’ own AI adoption and advance its journey to becoming an AI-first organisation. This development builds on its ongoing efforts to help enterprises shift from AI experimentation to scalable, business-critical transformation.

A. S. Lakshminarayanan, MD & CEO, Tata Communications, said: “This acquisition marks a significant step in our journey to redefine customer experience in the AI era. With Commotion’s capabilities already integrated into Tata Communications Kaleyra, we are seeing phenomenal customer traction. We expect this momentum to further accelerate our evolution into an AI-first organisation, making our Digital Fabric more intelligent, adaptive, and future-ready.”

In the quarter gone by, the total revenue jumped 6.4% YoY to ₹6,099 crore as against ₹5,727 crore. At the operational level, the EBITDA jumped 3.9% YoY to ₹1,173 crore as against ₹1,129 crore, while the net profit declined by 30% ₹172 crore.