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SAN JOSE, Calif. - Zoom Communications, Inc. (NASDAQ:ZM), the $24 billion market cap communications technology company with robust financials including a 75.85% gross profit margin, has expanded its Zoom Phone service to four additional telecom circles in India, according to a press release statement issued Wednesday. According to InvestingPro analysis, Zoom maintains impressive financial health with strong cash positions and minimal debt, positioning it well for strategic expansions like this one.
The cloud telephony service is now available in Mumbai, Delhi NCR, Karnataka (Bengaluru), and Andhra Pradesh & Telangana (Hyderabad), adding to its existing presence in Maharashtra and Tamil Nadu (Chennai) telecom circles launched in October 2024 and February 2025 respectively.
Licensed by India’s Department of Telecommunications, Zoom Phone now covers six major business and technology hubs across the country, with plans for further expansion to additional telecom circles.
The service allows businesses to replace legacy private branch exchange (PBX) systems and is available as an add-on for existing paid Zoom customers. It supports inbound and outbound calling through the Public Switched Telephone Network and integrates with Zoom Contact Center.
Velchamy Sankarlingam, president of Product and Engineering at Zoom, said India represents an important market for the company, noting that the expansion demonstrates their commitment to providing customers with a unified work platform.
The service includes AI features through Zoom AI Companion, which offers post-call summaries, voicemail task extraction, and voicemail prioritization capabilities for eligible paid accounts at no additional cost.
Zoom Phone enables businesses to acquire native phone numbers in specific telecom circles, allowing them to establish local presence in those regions. These native numbers operate over the PSTN, permitting outbound and inbound calls nationwide regardless of physical location.
The company indicated that this expansion addresses growing demand for cloud telephony solutions that support distributed workforces and hybrid teams. With a healthy current ratio of 4.57 and trading below its Fair Value according to InvestingPro analysis, Zoom appears well-positioned to capitalize on these market opportunities. For detailed insights into Zoom’s valuation and growth potential, investors can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US stocks.
In other recent news, Zoom Video Communications reported a modest beat in its first-quarter earnings for fiscal year 2026, surpassing revenue expectations by $8 million. This positive performance led to an increased full-year guidance, with a $15 million boost in constant currency revenue forecast. Benchmark analyst Matthew Harrigan responded by raising Zoom’s stock price target to $102, maintaining a Buy rating, while Piper Sandler increased their target to $85 but kept a Neutral rating. Stifel and Bernstein also maintained their price targets at $85 and $89, respectively, reflecting a cautious but steady outlook on Zoom’s stock.
Zoom’s recent financial results also highlighted a $10-15 million benefit from increased pricing for monthly Pro customers, contributing to enhanced revenue expectations for the Online segment. However, the company’s Enterprise segment faced some challenges, with a subtle reduction in guidance due to extended sales cycles and cautious spending by large U.S. customers. BofA Securities raised its price target for Zoom to $84, maintaining a Neutral rating, and noted that the company’s Enterprise net dollar expansion rate is not expected to surpass 100% until fiscal year 2027. Meanwhile, Zoom’s innovative use of technology was on display as CEO Eric Yuan presented earnings call remarks using a highly realistic avatar, underscoring the company’s commitment to privacy and security. These developments reflect Zoom’s efforts to navigate the current economic landscape while continuing to innovate and adapt its business strategies.
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