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Tata Communications

TATACOMM NSE

Key Fundamentals

MidcapTelecom Service ProviderTelecom
Market Cap
₹50,114 Cr
Volatility
Moderate
P/E Ratio
53.08
EBITDA
₹5,124 Cr
Return on Equity
27.56%
Debt to Equity
3.55
Book Value
₹120.92
EPS
₹28.87
52W High
₹2,110
52W Low
₹1,322.5

Tapetide Score

Data-driven rating, 0–100. How it works →

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 14.6 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% lower than 3Y
Net Income Growth
-36.43% lower than 3Y
Cash Flow Change
53.88% higher than 3Y
ROE
-47.35% lower than 3Y
ROCE
-23.09% lower than 3Y
EBITDA Margin (Avg.)
0.94% higher than 3Y

AI Analysis — Bull vs Bear

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

Tata Communications Ltd trades at a market cap of ₹50,114 Cr with a PE of 53.7x and a PB of 14.59x, reflecting premium valuations. The company has delivered a 3-year ROE of ~48% and maintains a 45.9% dividend payout, but compounded profit growth has turned negative at -15% over 3 years and sales growth remains subdued at ~8% over 5 years.

Bull Case 7
  • Strong return on equity track record with 3-year ROE of 47.5% and 5-year ROE of 74%, indicating efficient capital utilization
  • Healthy dividend payout ratio of 45.9% with a current dividend yield of 0.99%, reflecting consistent shareholder returns
  • Long-term compounded profit growth of 49% over 10 years demonstrates the company's ability to scale earnings over extended periods
  • TTM sales growth of 8% and 3-year compounded sales CAGR of 12% show improving revenue momentum in recent years
  • 10-year stock CAGR of 19% indicates sustained long-term wealth creation for shareholders
  • Last year ROE of 33% remains well above industry norms, suggesting the business continues to generate strong returns on invested equity
  • As a Tata Group enterprise with deep submarine cable and network infrastructure assets, the company holds a strategic position in India's digital connectivity ecosystem with a ₹50,114 Cr market cap
Bear Case 8
  • PE ratio of 53.7x is significantly elevated, pricing in substantial future growth that may not materialize given recent profit trends
  • Price-to-book of 14.59x is extremely high, meaning investors pay nearly 15 times the book value per share
  • Compounded profit growth has turned negative at -15% over 3 years and -4% over 5 years, signaling deteriorating earnings trajectory
  • Poor sales growth of 7.72% over the past 5 years suggests limited top-line expansion capability
  • Contingent liabilities of ₹18,056 Cr represent a material risk, exceeding one-third of the current market cap of ₹50,114 Cr
  • Potential capitalization of interest costs could be inflating reported profits and asset values, masking true operating performance
  • 3-year stock CAGR of -2% indicates the stock has destroyed value for medium-term investors despite the broader market rally
  • TTM profit growth of 0% alongside 8% sales growth implies margin compression and rising cost pressures

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

AI News Digest

Anthropic anthropic claude-opus-4.6 2h ago
Headwinds 3
  • Net profit plunges 46% in FY26 Aug 21

    Net profit fell to ₹964.08 crore in FY26 from ₹1,794.24 crore in FY25, a 46.27% decline despite 8% revenue growth to ₹25,104.45 crore.

  • Q1 FY27 operating profit halved Aug 21

    Operating profit dropped 51.31% QoQ to ₹211.38 crore in Q1 FY27 from ₹434.09 crore in Q4 FY26, with revenue virtually flat at ₹6,595.76 crore.

  • South Africa unit shut down Sep 8

    Tata Communications closed its South Africa subsidiary Kaleyra Africa effective September 4, signaling a pullback from that market.

Positives 4
  • AI partnership targets 60M SMBs Aug 28

    Tata Communications partnered with Tata Teleservices to deliver AI-powered voice agents to over 60 million Indian SMBs, leveraging its Voice AI platform with sub-500ms latency and multilingual fluency.

  • 5G integration in Tata Sierra.ev Aug 25

    Tata Communications' MOVE™ platform will integrate 5G connectivity into Tata Motors' Sierra.ev via the N.IO SDV platform, enabling real-time OTA updates and AI applications.

  • Revenue grows 8% YoY in FY26 Aug 21

    FY26 revenue rose 8.03% YoY to ₹25,104.45 crore from ₹23,238.89 crore, showing continued top-line momentum.

  • ESOP allotment to employees Aug 21

    Allotted 68,894 equity shares at ₹10 face value under ESOP, increasing paid-up capital to ₹285.09 crore, supporting employee retention.

Neutral 2
  • ₹550 crore in commercial paper Aug 24

    Issued ₹300 crore CP at 7.00% (maturing Feb 17, 2027) on Aug 24 and ₹250 crore CP at 6.51% (maturing Nov 17, 2026) on Aug 18, routine short-term funding.

  • Investor meet at Elara Dialogue Aug 27

    Tata Communications will participate in the Ashwamedh - Elara India Dialogue 2026 in Mumbai on September 1, a standard SEBI Reg 30 disclosure.

TL;DR: Tata Communications is expanding its addressable market through strategic AI and 5G partnerships within the Tata ecosystem, and top-line growth remains steady at 8% YoY. However, profitability is under significant pressure with FY26 net profit nearly halving and Q1 FY27 operating profit dropping 51% QoQ, raising concerns about margin sustainability. The Kaleyra Africa closure suggests portfolio rationalization. The key question going forward is whether new AI and connected vehicle revenue streams can offset the sharp margin deterioration.

Quarterly Results

Particulars 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

Particulars 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

Particulars 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

Particulars 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

Particulars 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%

Insights

Beta

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

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48 extracted metrics + investor summaries across FY11–FY26.

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Shareholding Pattern

Others1.37%Promot.58.86%Public6.17%FIIs13.75%DIIs19.86%As ofJun 2026

Documents

Frequently Asked Questions about Tata Communications

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 trades as TATACOMM on the NSE and under code 500483 on the BSE.
Which sector does Tata Communications Ltd belong to?
Tata Communications Ltd is classified under the Telecommunication sector, in the Telecom - Services industry.
What is the market capitalisation of Tata Communications Ltd?
Tata Communications Ltd has a market capitalisation of ₹50,114 Cr, which places it in the Large Cap band.
What is the PE ratio of Tata Communications Ltd?
Tata Communications Ltd trades at a PE ratio of 53.08, on earnings per share of ₹28.87, against a book value of ₹120.92 per share.
What is the 52-week high and low of Tata Communications Ltd?
Over the last 52 weeks Tata Communications Ltd has traded between ₹1,322.5 and ₹2,110.
Does Tata Communications Ltd pay dividends?
Tata Communications Ltd has a dividend yield of 0.99%.
What is the Return on Equity (ROE) of Tata Communications Ltd?
Tata Communications Ltd reported a return on equity of 27.56%. Its debt-to-equity ratio is 3.55.

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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