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Tata Communications Limited
(TATACOMM)
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Rating:49Neutral
Price Target:
₹1,670.00
▼(-7.44% Downside)
Action:Reiterated
Date:08/21/26
The score is held back primarily by weakening profitability and high leverage, despite steady multi-year revenue growth and positive operating cash flow. Technical indicators also signal weak momentum (below key moving averages with negative MACD). Valuation further pressures the score due to a high P/E and only a modest dividend yield.
Positive Factors
Multi-year revenue growth
Sustained multi-year revenue expansion indicates continued demand for the company’s connectivity and digital infrastructure services. Although growth slowed in 2026, the larger revenue base supports scale and provides a platform for future managed-service growth.
Negative Factors
Sharp profitability deterioration
The steep decline in gross and net margins signals weaker earnings quality and reduced profitability from each unit of revenue. Unless margins recover, lower earnings power could constrain reinvestment, shareholder returns, and the company’s ability to absorb operating pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
Sustained multi-year revenue expansion indicates continued demand for the company’s connectivity and digital infrastructure services. Although growth slowed in 2026, the larger revenue base supports scale and provides a platform for future managed-service growth.
Read all positive factors
Tata Communications Limited (TATACOMM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹502.56B
Dividend Yield0.99%
Average Volume (3M)26.79K
Price to Earnings (P/E)53.1
Beta (1Y)1.05
Revenue Growth8.12%
EPS Growth-33.60%
CountryIN
Employees6,046
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)33.19
Shares Outstanding285,016,750
10 Day Avg. Volume23,412
30 Day Avg. Volume26,787
Financial Highlights & Ratios
PEG Ratio-1.00
Price to Book (P/B)11.61
Price to Sales (P/S)1.61
P/FCF Ratio25.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)55.84
Revenue Forecast (FY)₹271.02B
Tata Communications Limited Business Overview & Revenue Model
Company Description
Headquartered in Mumbai, India, Tata Communications Limited, established in 1986 (and previously known as Videsh Sanchar Nigam Limited until its rebranding in 2008), delivers a comprehensive suite of telecommunications services across the globe. T...
How the Company Makes Money
Tata Communications primarily makes money by selling connectivity and managed digital infrastructure services to business and institutional customers under recurring contracts and usage-based arrangements. Key revenue streams typically include: (1...
Tata Communications Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
48
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 254.26B | 248.03B | 231.09B | 207.85B | 178.38B | 167.25B |
| Gross Profit | 77.67B | 56.75B | 67.67B | 64.09B | 61.12B | 58.13B |
| EBITDA | 50.38B | 50.59B | 40.43B | 38.91B | 38.71B | 37.68B |
| Net Income | 9.46B | 10.44B | 18.36B | 9.68B | 17.96B | 14.82B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 284.04B | 265.85B | 245.61B | 205.53B | 196.68B |
| Cash, Cash Equivalents and Short-Term Investments | 9.91B | 9.91B | 15.03B | 9.36B | 17.69B | 11.74B |
| Total Debt | 0.00 | 122.49B | 123.57B | 112.63B | 85.77B | 91.22B |
| Total Liabilities | -36.51B | 247.53B | 235.60B | 227.71B | 190.04B | 187.12B |
| Stockholders Equity | 36.51B | 34.47B | 30.21B | 17.86B | 15.18B | 9.28B |
Cash Flow | ||||||
| Free Cash Flow | -1.86B | 15.62B | 7.05B | 11.00B | 28.91B | 25.47B |
| Operating Cash Flow | 9.54B | 39.95B | 29.11B | 31.82B | 43.84B | 42.04B |
| Investing Cash Flow | -5.21B | -15.24B | -21.79B | -26.44B | -18.42B | -8.95B |
| Financing Cash Flow | -6.99B | -24.39B | -9.36B | -8.13B | -22.41B | -34.31B |
Tata Communications Limited Technical Analysis
Positive
1804.20
Price Trends
1762.05
Positive
1782.14
Negative
1704.20
Positive
Market Momentum
1.95
Negative
54.62
Neutral
83.32
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATACOMM, the sentiment is Positive. The current price of 1804.2 is above the 20-day moving average (MA) of 1711.42, above the 50-day MA of 1762.05, and above the 200-day MA of 1704.20, indicating a bullish trend. The MACD of 1.95 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 83.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TATACOMM.
Tata Communications Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹11.43T | 38.20 | ― | 1.31% | 19.63% | -18.80% | |
63 Neutral | ₹1.02T | 14.31 | ― | 3.61% | 6.72% | -26.31% | |
61 Neutral | ₹31.10B | 8.22 | ― | 2.44% | -0.31% | -15.46% | |
60 Neutral | ₹83.40B | 24.11 | ― | 1.25% | 20.85% | 9.07% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹1.62T | 5.22 | ― | 0.72% | 3.30% | ― | |
49 Neutral | ₹502.56B | 53.08 | ― | 0.99% | 8.12% | -33.60% |
* General Sector Average
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Tata Communications Limited Corporate Events
Tata Communications Posts Investor Presentation Ahead of Quarterly Earnings Call
Jul 22, 2026
Tata Communications has notified the stock exchanges that its investor presentation for the quarterly earnings call is now available on the company’s website. The move complies with SEBI’s disclosure regulations and provides shareholde...
Tata Communications Invests in AI-Ready India–Singapore Subsea Corridor
Jun 30, 2026
Tata Communications has announced strategic investments in subsea cable infrastructure, acquiring significant fiber capacity to bolster connectivity between India’s emerging AI hubs in Mumbai and Chennai and Singapore’s established clo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.