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Tata Communications Ltd

TATACOMM NSE

Key Fundamentals

MidcapTelecom Service ProviderTelecom
Market Cap
₹48,108 Cr
Volatility
Moderate
P/E Ratio
50.91
EBITDA
₹5,124 Cr
Return on Equity
27.56%
Debt to Equity
3.55
Book Value
₹120.94
EPS
₹28.87
52W High
₹2,110
52W Low
₹1,322.5

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Technical Indicators

Key Insights

Strengths

2
  • Company has a good return on equity (ROE) track record: 3 Years ROE 47.5%
  • Company has been maintaining a healthy dividend payout of 45.9%

Weaknesses

4
  • Stock is trading at 14.2 times its book value
  • The company has delivered a poor sales growth of 7.72% over past five years.
  • Contingent liabilities of Rs.18,056 Cr.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
8.03% ↗
Net Income Growth
-36.43% ↗
Cash Flow Change
53.88% ↗
ROE
-47.35% ↗
ROCE
-23.09% ↗
EBITDA Margin (Avg.)
0.94% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
AI opinion · based on fundamentals
Risk high

Tata Communications trades at a market cap of Rs.49,778 Cr with a PE of 53.5x and PB of 14.53x, reflecting premium valuations. The company has delivered strong 3-year ROE of 48% but faces slowing profit growth at 0% TTM and carries significant contingent liabilities of Rs.18,056 Cr.

Bull Case 7
  • Exceptional 3-year average ROE of 48%, indicating highly efficient capital deployment relative to telecom peers
  • Healthy dividend payout ratio of 45.9% with current dividend yield of 1%, demonstrating consistent shareholder returns
  • TTM sales growth of 8% shows revenue momentum is accelerating compared to the 5-year CAGR of 8%
  • 10-year compounded profit CAGR of 49% reflects long-term structural earnings improvement from legacy losses to profitability
  • 3-year compounded sales growth of 12% indicates the digital services pivot is driving meaningful top-line expansion
  • 5-year ROE of 74% demonstrates a sustained period of superior return generation on equity capital
  • 10-year stock CAGR of 19% shows the market has rewarded the business transformation over the long term
Bear Case 8
  • PE ratio of 53.5x is significantly elevated for a telecom infrastructure company, leaving little margin of safety
  • Trading at 14.53x book value, far above sector norms, implying extreme optimism priced into the stock
  • Compounded profit growth has turned negative at -15% over 3 years, signaling earnings deterioration despite revenue growth
  • Contingent liabilities of Rs.18,056 Cr represent approximately 36% of market cap, posing material balance sheet risk
  • 5-year sales CAGR of only 7.72% reflects sluggish top-line growth for a company valued at such premium multiples
  • TTM profit growth of 0% indicates earnings stagnation even as revenues grew 8%, suggesting margin compression
  • 5-year compounded profit CAGR of -4% shows the company has struggled to translate revenue into sustainable earnings growth
  • Potential capitalization of interest costs may be flattering reported profitability, masking true operating performance

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20h ago
Headwinds 1
  • Net profit drops 43.9% Jul 22

    Q1 FY27 net profit declined 43.9% to ₹130 crore due to exceptional items of ₹106.36 crore including provisions for staff optimisation, accidental damages, and contractual obligations.

Positives 4
  • Q1 revenue up 10.5% YoY Jul 22

    Q1 FY27 revenue rose 10.5% YoY to ₹6,583 crore with Digital Portfolio growing 17.10% to ₹2,940 crore. Management targets double-digit EBITDA growth in FY27.

  • Fivefold data centre expansion planned Jul 29

    Tata Communications anticipates a fivefold increase in India's data centre capacity, positioning itself as a key player with a strategic focus on significant EBITDA growth through digital infrastructure scaling.

  • Unified AI stack for SMBs Jul 28

    Partnered with Tata Tele Business Services to deploy a unified AI stack integrating low-latency Voice AI, targeting 60 million Indian SMBs with sovereign, scalable digital tools.

  • New CTO appointed Jul 23

    Narottam Sharma appointed as EVP & Chief Transformation Officer effective September 21, 2026, joining from Jubilant FoodWorks to drive transformation agenda.

Neutral 2
  • EMKAY Confluence 2026 attendance Aug 7

    Tata Communications will participate in the EMKAY Confluence 2026 analyst and institutional investor event on August 12, 2026, in Mumbai.

  • Q4FY26 earnings transcript uploaded Jul 28

    Transcript of earnings call held July 22, 2026 discussing unaudited results for quarter ended June 30, 2026 uploaded per SEBI Regulation 30.

TL;DR: Tata Communications is executing well on top-line growth with Q1 FY27 revenue up 10.5% and strong Digital Portfolio momentum at 17.10% growth. The profit decline is largely driven by one-time exceptional items rather than structural weakness. Strategic bets on data centre expansion, AI solutions for SMBs, and a new transformation officer signal an aggressive digital infrastructure push. If management delivers on double-digit EBITDA growth guidance and exceptional charges normalise, the earnings trajectory should improve in coming quarters.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
4,771
4,872
5,588
5,645
5,592
5,728
5,798
5,990
5,960
6,100
6,189
6,554
6,583
Expenses
3,747
3,857
4,435
4,569
4,456
4,598
4,617
4,868
4,823
4,926
4,961
5,270
5,353
Operating Profit
1,024
1,015
1,153
1,076
1,137
1,129
1,181
1,122
1,137
1,174
1,228
1,284
1,230
OPM %
21%
21%
21%
19%
20%
20%
20%
19%
19%
19%
20%
20%
19%
Other Income
191
25
-212
-32
85
29
-7
926
-46
-38
183
63
-93
Interest
131
137
184
186
170
189
187
182
177
202
201
182
186
Depreciation
580
605
603
651
634
648
637
672
666
679
751
731
739
PBT
504
298
154
207
417
321
350
1,193
249
255
458
434
211
Tax %
26%
26%
74%
-52%
21%
30%
36%
15%
26%
32%
22%
42%
41%
Net Profit
382
221
45
322
333
227
236
1,041
190
183
364
259
130
EPS in Rs
13.39
7.74
1.57
11.27
11.68
7.97
8.28
36.5
6.67
6.42
12.82
9.24
4.71
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
19,913
18,149
17,620
16,772
16,525
17,068
17,100
16,725
17,838
20,969
23,109
24,803
25,426
Expenses
16,919
15,714
15,214
14,359
13,780
13,779
12,840
12,498
13,520
16,739
18,540
19,980
20,510
Operating Profit
2,994
2,434
2,406
2,412
2,745
3,289
4,261
4,227
4,318
4,230
4,569
4,822
4,916
OPM %
15%
13%
14%
14%
17%
19%
25%
25%
24%
20%
20%
19%
19%
Other Income
291
82
1,294
-116
62
-321
82
338
440
47
1,033
162
114
Interest
751
409
367
344
397
471
420
360
432
644
729
762
771
Depreciation
2,161
1,864
1,866
1,906
2,068
2,358
2,314
2,205
2,262
2,470
2,592
2,827
2,900
PBT
373
243
1,467
46
343
140
1,609
2,000
2,063
1,163
2,281
1,396
1,358
Tax %
99%
96%
16%
778%
80%
162%
22%
26%
14%
18%
21%
31%
—
Net Profit
3
10
1,235
-326
-80
-85
1,252
1,485
1,801
970
1,837
997
936
EPS in Rs
0.05
0.3
43.26
-11.53
-2.89
-3.02
43.88
51.99
63.02
33.98
64.43
35.14
33.19
Div. Payout %
12151%
1412%
14%
-39%
-156%
-133%
32%
40%
33%
49%
39%
50%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
285
285
285
285
285
285
285
285
285
285
285
285
Reserves
36
-648
1,307
214
-467
-1,563
-170
643
1,233
1,501
2,736
3,162
Borrowings
13,076
14,231
9,214
8,927
9,935
12,413
11,394
9,122
8,577
11,263
12,357
12,249
Other Liabilities
10,798
11,230
10,228
10,131
10,198
10,996
9,797
9,588
10,424
11,316
11,065
12,591
Total Liabilities
24,195
25,098
21,033
19,557
19,951
22,131
21,306
19,638
20,519
24,365
26,444
28,287
Fixed Assets
14,704
14,444
10,929
10,797
11,289
12,768
11,520
10,936
10,500
13,467
13,919
15,481
CWIP
638
800
751
520
361
349
493
852
1,148
1,327
1,100
850
Investments
1,768
1,837
2,434
1,250
1,491
1,563
2,233
1,565
1,951
1,608
2,714
2,297
Other Assets
7,086
8,017
6,920
6,990
6,809
7,451
7,060
6,284
6,921
7,963
8,711
9,659
Total Assets
24,195
25,098
21,033
19,557
19,951
22,131
21,306
19,638
20,519
24,365
26,444
28,287
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
3,028
2,363
2,394
1,713
1,844
2,525
3,180
4,204
4,384
3,182
2,911
4,479
Investing
-1,908
-2,313
940
-500
-2,284
-1,521
-2,007
-894
-1,836
-2,641
-2,173
-1,434
Financing
-1,388
-9
-3,276
-959
-28
-942
-1,205
-3,431
-2,241
-813
-936
-2,937
Net Cash Flow
-268
41
58
254
-467
61
-32
-121
308
-272
-198
108
Free Cash Flow
1,257
334
598
102
106
844
1,828
2,554
2,899
1,110
711
2,060
CFO/OP
105
114
130
82
88
85
86
97
106
80
82
108
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
46
61
54
64
66
69
56
56
56
65
63
61
Cash Conversion Cycle
46
61
54
64
66
69
56
56
56
65
63
61
Working Capital Days
-155
-139
-105
-125
-124
-150
-88
-103
-119
-151
-107
-120
ROCE %
8%
7%
23%
8%
8%
9%
18%
22%
24%
18%
15%
15%

Shareholding Pattern

As of Jun 2026
Promoters 58.86%
DIIs 19.86%
FIIs 13.75%
Public 6.17%
Others 1.37%
Total 100.01%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
58.86%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
19.20%
18.24%
18.08%
18.07%
17.80%
16.98%
17.16%
13.61%
14.46%
14.43%
13.75%
DIIs
7.04%
6.93%
7.16%
8.36%
11.13%
12.71%
13.63%
13.93%
14.03%
13.63%
13.01%
12.13%
13.13%
13.15%
13.45%
13.66%
14.51%
14.83%
19.03%
18.49%
19.14%
19.86%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
6.94%
7.38%
7.62%
8.06%
7.53%
7.99%
7.92%
7.70%
7.91%
7.73%
7.97%
7.88%
7.89%
7.92%
7.59%
7.69%
7.69%
7.30%
6.80%
6.69%
6.26%
6.17%
Others
27.16%
26.83%
26.36%
24.73%
22.48%
20.44%
19.59%
19.50%
19.19%
19.77%
20.16%
1.93%
1.88%
1.98%
2.02%
1.99%
1.95%
1.84%
1.70%
1.50%
1.31%
1.37%
No. of Shareholders
91,661
93,724
1,06,486
1,19,487
1,44,979
1,74,948
1,75,017
1,66,116
1,82,940
1,70,857
1,85,976
1,95,698
1,93,157
2,03,417
1,85,024
1,90,345
1,91,741
1,91,499
1,86,948
1,82,123
1,75,946
1,72,357

Documents

Frequently Asked Questions about Tata Communications Ltd

What does Tata Communications Ltd do?
Tata Communications was incorporated on March 19, 1986 as VSNL. In February 2002, the Government of India, as per their disinvestments plan, sold 25% of their holding in the company to the strategic partner. Consequently, the company was taken over under the administrative control of TATA. [1] It...
Where is Tata Communications Ltd (TATACOMM) listed?
Tata Communications Ltd is listed on the Indian stock exchanges. It is listed on NSE: TATACOMM and BSE: 500483. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Tata Communications Ltd belong to?
Tata Communications Ltd operates in the Telecommunication sector within the Telecom - Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Tata Communications Ltd?
Tata Communications Ltd has a market capitalisation of approximately ₹48108.00 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Tata Communications Ltd?
The Price-to-Earnings (PE) ratio of Tata Communications Ltd is 50.91. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Tata Communications Ltd?
Over the past 52 weeks, Tata Communications Ltd has traded between a low of ₹1,322.5 and a high of ₹2,110. This range helps investors understand the stock's price volatility and recent trading levels.
Does Tata Communications Ltd pay dividends?
Yes, Tata Communications Ltd has a dividend yield of 1.02%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Tata Communications Ltd?
Tata Communications Ltd has a Return on Equity (ROE) of 27.56%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Tata Communications Ltd on Tapetide?
On Tapetide, you can view Tata Communications Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Tata Communications was incorporated on March 19, 1986 as VSNL. In February 2002, the Government of India, as per their disinvestments plan, sold 25% of their holding in the company to the strategic partner. Consequently, the company was taken over under the administrative control of TATA. [1] It is the leading global digital ecosystem enabler. It has a leadership position in emerging markets, and an infrastructure that spans the globe. It delivers managed solutions to multinational companies and service providers. It partners with 300 of the Fortune 500 companies with their state-of the-art solutions, including a wide range of communication, collaboration, cloud, mobility, connected solutions, network and data center services. [2]

Website tatacommunications.com
CEO Mr. Amur Swaminathan Lakshminarayanan
Employees 5,852
Listed 1995-04-12
Face Value ₹ 10
Issued Size 28,50,00,000

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