Tata Communications Limited (TATACOMM) AI Stock Analysis

• Market Cap: ₹500.52B
• Dividend Yield: 1.39%
• Average Volume (3M): 37.38K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.16
• Revenue Growth: 4.94%
• EPS Growth: 49.05%
• Country: IN
• Employees: 7,144
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 6.42
• Shares Outstanding: 285,000,000
• 10 Day Avg. Volume: 11,946
• 30 Day Avg. Volume: 37,379
• PEG Ratio: 0.55
• Price to Book (P/B): 14.90
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 63.83
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹2,027.00 ▲(12.35% Upside)

The overall stock score is primarily driven by strong financial performance, with robust revenue and profit growth. However, high leverage and an overbought technical position present risks. The valuation indicates the stock is relatively expensive, which could limit upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.

Operational Efficiency

Strong operational efficiency through effective cost management supports sustainable profitability and competitive advantage in the telecommunications sector.

Cash Generation

Robust cash generation from operations ensures liquidity and supports investment in growth opportunities, reinforcing long-term business resilience.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase vulnerability to economic downturns, potentially impacting long-term financial health.

Decline in Free Cash Flow

A decline in free cash flow may limit the company's ability to invest in growth initiatives or manage debt, affecting future financial performance.

Net Profit Margin Volatility

Volatility in net profit margins can indicate inconsistent profitability, which may challenge long-term financial planning and investor confidence.

Tata Communications Limited Business Overview & Revenue Model

Company Description

Tata Communications Limited provides telecommunications services worldwide. The company operates through Voice Solutions, Data and Managed Services, Payment Solutions, Transformation Services, and Real Estate segments. It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems. The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; and network management and support services. In addition, it provides networking services, including WAN ethernet, global VPN, and private lines; Internet of Things, smartphone proliferation, and tighter supply chain integration/automation; and network security, cloud security operations centers, cloud security, and custom solutions. Further, the company offers cloud, hosting, security, and SD-WAN; intelligent routing and on-demand connectivity solutions; media and entertainment services, including gaming, sports, news, cable, broadcasting, asset management, workflow management, channel origination, video contribution and distribution feeds, OTT platform as a service, live OTT delivery, and transcoding as services; and leases premises. It serves service providers and enterprises. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.

How the Company Makes Money

Tata Communications generates revenue through multiple streams, primarily from its core services which include voice, data, and managed network services. The company earns significant income from providing wholesale voice services to telecom operators, leveraging its extensive global network. Additionally, TATACOMM offers data services, including cloud and connectivity solutions, to enterprises, contributing to its revenue growth. The company has also formed strategic partnerships with technology firms and telecom operators to enhance its service offerings and expand its customer base. Furthermore, TATACOMM's investments in digital services and solutions, such as IoT and cybersecurity, are increasingly becoming significant contributors to its revenue model. Overall, TATACOMM's diverse service portfolio and global presence allow it to tap into various markets, driving its financial performance.

Tata Communications Limited Financial Statement Overview

Summary

Tata Communications demonstrates notable strengths in revenue and profit growth, supported by strong operating efficiencies. However, financial stability is partially compromised by high leverage, posing potential risks. Cash flows are robust, albeit with a recent decline in free cash flow.

Income Statement

Tata Communications has shown consistent revenue growth, with a notable increase from 2024 to 2025. Gross profit margins are strong, indicating effective cost management. The EBIT and EBITDA margins are also healthy, showing robust operational efficiency. However, the net profit margin has seen some fluctuations, suggesting potential volatility in net income.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating significant leverage which poses financial risk. Return on equity has improved over the years, reflecting enhanced profitability relative to shareholders' equity. The equity ratio is somewhat low, suggesting that assets are largely financed by debt rather than equity, which may affect financial stability.

Cash Flow

Operating cash flow remains strong, demonstrating the company's ability to generate cash from operations. However, free cash flow has decreased in the latest year, though it remains positive. The ratio of operating cash flow to net income is favorable, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	235.16B	231.09B	207.85B	178.38B	167.25B	171.00B
Gross Profit	66.86B	67.67B	64.09B	61.12B	58.13B	59.10B
EBITDA	41.01B	40.43B	38.91B	38.71B	37.68B	37.74B
Net Income	16.94B	18.36B	9.68B	17.96B	14.82B	12.51B
Balance Sheet
Total Assets	0.00	265.85B	245.61B	205.53B	196.68B	213.33B
Cash, Cash Equivalents and Short-Term Investments	14.58B	15.03B	9.36B	17.69B	11.74B	22.08B
Total Debt	0.00	123.57B	112.63B	85.77B	91.22B	113.94B
Total Liabilities	-30.24B	235.60B	227.71B	190.04B	187.12B	211.90B
Stockholders Equity	30.24B	30.21B	17.86B	15.18B	9.28B	1.15B
Cash Flow
Free Cash Flow	0.00	7.05B	11.00B	28.91B	25.47B	18.16B
Operating Cash Flow	0.00	29.11B	31.82B	43.84B	42.04B	31.80B
Investing Cash Flow	0.00	-21.79B	-26.44B	-18.42B	-8.95B	-20.05B
Financing Cash Flow	0.00	-9.36B	-8.13B	-22.41B	-34.31B	-12.05B

Tata Communications Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1804.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TATACOMM, the sentiment is Negative. The current price of 1804.2 is above the 20-day moving average (MA) of 1792.06, below the 50-day MA of 1826.90, and above the 200-day MA of 1705.68, indicating a neutral trend. The MACD of -18.85 indicates Positive momentum. The RSI at 36.12 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TATACOMM.

Tata Communications Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MPSLTD	78 Outperform	₹32.22B	17.90	―	4.14%	16.76%	50.15%
INDIAMART	76 Outperform	₹127.04B	23.59	―	1.33%	13.36%	24.85%
IEX	72 Outperform	₹124.21B	26.49	―	3.23%	14.10%	19.23%
FSL	70 Outperform	₹222.93B	32.86	―	1.13%	25.92%	24.58%
TATACOMM	67 Neutral	₹500.52B	36.26	―	1.39%	4.94%	49.05%
RAILTEL	66 Neutral	₹113.31B	35.33	―	0.79%	29.92%	22.87%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Tata Communications Limited Corporate Events

Tata Communications Acquires Majority Stake in AI Firm Commotion, Inc.

Tata Communications Limited, through its wholly-owned subsidiary Tata Communications (Netherlands) B.V., has acquired a 51% stake in Commotion, Inc., a U.S.-based company specializing in AI-enabled enterprise solutions. This acquisition is set to enhance Tata Communications’ Customer Interaction Suite by integrating advanced AI capabilities, thereby improving automated and personalized customer engagement solutions. The transaction, valued at approximately USD 25.50 million, is expected to strengthen Tata Communications’ market position in delivering intelligent customer interaction solutions.

Tata Communications Releases Earnings Call Recording for Q2 2025

Tata Communications Limited has released the recording of its Earnings Call for the quarter and half-year ended September 30, 2025. This release, in compliance with SEBI regulations, provides stakeholders with insights into the company’s unaudited financial results, reflecting its ongoing commitment to transparency and regulatory adherence.