Tata Communications Ltd logo

Tata Communications Ltd

TATACOMM NSE

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]

AI Verdict: HOLD Confidence: 5%

Tata Communications trades at a steep PE of 58.9x and 17x book value with declining profits (TTM profit growth -21%), making the valuation hard to justify despite a strong 3-year ROE of 48%. The 62.5% buy consensus from analysts suggests long-term structural tailwinds, but near-term earnings compression warrants caution.

Key Fundamentals

MidcapTelecom Service ProviderTelecom
Market Cap
₹57,701 Cr
Volatility
Moderate
P/E Ratio
56.67
EBITDA
₹5,124 Cr
Return on Equity
53.04%
Debt to Equity
3.8
Book Value
₹120.94
EPS
₹28.87
52W High
₹2,110
52W Low
₹1,322.5

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 16.8 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 1d ago
HOLD
Risk high

Tata Communications trades at a steep PE of 58.9x and 17x book value with declining profits (TTM profit growth -21%), making the valuation hard to justify despite a strong 3-year ROE of 48%. The 62.5% buy consensus from analysts suggests long-term structural tailwinds, but near-term earnings compression warrants caution.

Bull Case 7
  • Strong 3-year ROE of 48% demonstrates efficient capital allocation and high return generation capability
  • Healthy dividend payout ratio of 45.9% with current yield of 0.85%, indicating shareholder-friendly management
  • 10-year compounded profit CAGR of 49% reflects long-term earnings compounding ability
  • 62.5% of analysts (5 out of 8) rate the stock a Buy, signaling institutional confidence in the business model
  • Stock CAGR of 25% over 1 year shows strong recent momentum and market re-rating
  • Market cap of Rs.58,214 Cr positions Tata Communications as a mid-to-large cap enterprise digital services leader with scale advantages
  • 3-year compounded sales growth of 12% indicates accelerating revenue trajectory from enterprise digital transformation demand
Bear Case 8
  • PE ratio of 58.9x is significantly elevated for a telecom services company, pricing in growth that may not materialize
  • TTM compounded profit growth of -21% shows sharp earnings decline despite revenue growth of 7%, indicating margin pressure
  • Trading at 17x price-to-book value leaves very little margin of safety for investors at current levels
  • Contingent liabilities of Rs.18,056 Cr represent a material risk, nearly 31% of the company's market cap
  • 5-year compounded sales growth of only 8% is tepid for a stock commanding nearly 59x earnings
  • 3-year compounded profit CAGR of -15% indicates a sustained earnings deterioration trend, not a one-off
  • Potential interest cost capitalization raises questions about the true quality of reported earnings
  • Only 10% stock CAGR over 3 and 5 years suggests the recent 1-year rally of 25% may not be sustainable

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

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 1
  • Fire at Delhi data centre Jun 5

    Fire broke out at Next-Gen Tower in Greater Kailash-1, New Delhi affecting ~200 sq ft in the battery room on the third floor. Two firefighters injured; cause under investigation and infrastructure damage assessment pending.

Positives 3
  • Stock surges, hits record high Jun 5

    Shares surged 2.78% to ₹1,955.55 on Jun 5 despite the fire, with 22.93% gain over one month. Stock hit a record high of ₹2,050 on May 26, 2026 vs 52-week low of ₹1,323 on Apr 2.

  • ₹17.50 per share dividend May 26

    Board recommended final dividend of ₹17.50 per share for FY26 with record date of June 19, 2026.

  • Business continuity protocols held Jun 5

    Company activated disaster recovery protocols immediately after the fire, ensuring uninterrupted services and demonstrating operational resilience to investors.

Neutral 5
  • ₹39.24 Cr block trade on NSE Jun 17

    Block trade of ~2,03,837 shares executed at ₹1,925.10 per share totalling ₹39.24 crore, indicating institutional participation.

  • ₹700 Cr raised via CPs Jun 16

    Tata Communications issued ₹400 crore CP on Jun 15 at 7.05% (maturing Sep 11) and ₹300 crore CP on May 22 at 7.27% (maturing Aug 21), raising total ₹700 crore in short-term debt.

  • BRSR filed for FY26 Jun 16

    Filed Business Responsibility and Sustainability Report for FY 2025-26 reporting 14,585 employees and zero data breaches with third-party assurance.

  • AGM scheduled July 9, 2026 Jun 16

    40th AGM set for July 9, 2026 via video conferencing to approve final dividend and other resolutions.

  • AI scaling crisis report released Jun 4

    Joint report with Bloomberg Media Studios found 77% of enterprises view AI as board-level priority but 65% still rely on legacy infrastructure, highlighting modernisation opportunity.

TL;DR: Tata Communications is in strong momentum territory with a 22.93% one-month gain and a record high of ₹2,050 in late May, supported by a healthy ₹17.50 dividend and zero data breaches in its ESG report. The Delhi data centre fire is a near-term operational risk, though swift activation of business continuity protocols and positive stock reaction suggest limited investor concern. Short-term debt issuance of ₹700 crore via commercial paper bears watching but is routine for working capital. The trend is bullish with the key risk being any material infrastructure damage from the fire investigation.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
4,569
4,771
4,872
5,588
5,645
5,592
5,728
5,798
5,990
5,960
6,100
6,189
6,554
Expenses
3,534
3,747
3,857
4,435
4,569
4,456
4,598
4,617
4,868
4,823
4,926
4,961
5,270
Operating Profit
1,034
1,024
1,015
1,153
1,076
1,137
1,129
1,181
1,122
1,137
1,174
1,228
1,284
OPM %
23%
21%
21%
21%
19%
20%
20%
20%
19%
19%
19%
20%
20%
Other Income
62
191
25
-212
-32
85
29
-7
926
-46
-38
183
63
Interest
132
131
137
184
186
170
189
187
182
177
202
201
182
Depreciation
618
580
605
603
651
634
648
637
672
666
679
751
731
PBT
345
504
298
154
207
417
321
350
1,193
249
255
458
434
Tax %
8%
26%
26%
74%
-52%
21%
30%
36%
15%
26%
32%
22%
42%
Net Profit
327
382
221
45
322
333
227
236
1,041
190
183
364
259
EPS in Rs
11.44
13.39
7.74
1.57
11.27
11.68
7.97
8.28
36.5
6.67
6.42
12.82
9.24
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
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
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
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
OPM %
15%
13%
14%
14%
17%
19%
25%
25%
24%
20%
20%
19%
Other Income
291
82
1,294
-116
62
-321
82
338
440
47
1,033
162
Interest
751
409
367
344
397
471
420
360
432
644
729
762
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
PBT
373
243
1,467
46
343
140
1,609
2,000
2,063
1,163
2,281
1,396
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
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
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 Mar 2026
Promoters 58.86%
DIIs 19.14%
FIIs 14.43%
Public 6.26%
Others 1.31%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 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%
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%
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%
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%
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%
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%
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

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 ₹57701.10 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 56.67. 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 0.86%. 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 53.04%. 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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