Tata Communications Limited (IN:TATACOMM)
:TATACOMM
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Tata Communications Limited
(TATACOMM)
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Rating:57Neutral
Price Target:
₹1,637.00
▼(-9.27% Downside)
Action:ReiteratedDate:04/24/26
The score is primarily constrained by weakening profitability and still-high leverage, with uneven free-cash-flow conversion. Technical indicators are supportive in the near term, but the longer-term trend remains mixed. Valuation is a notable headwind due to the high P/E and only moderate dividend yield.
Positive Factors
Recurring, diversified revenue model
Tata Communications' business is built on long-term, recurring contracts across connectivity, managed services, cloud, security and collaboration. This diversified, subscription-like revenue mix supports predictable topline, cross-sell opportunities and customer stickiness, sustaining cash flow and reducing revenue volatility over months.
Negative Factors
High leverage
Leverage remains elevated, with debt-to-equity at 3.6x and substantial absolute debt. High financial leverage limits strategic flexibility, increases interest expense vulnerability to rate moves, raises refinancing risk and constrains the pace of deleveraging or acquisitions, weighing on durable financial stability.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring, diversified revenue model
Tata Communications' business is built on long-term, recurring contracts across connectivity, managed services, cloud, security and collaboration. This diversified, subscription-like revenue mix supports predictable topline, cross-sell opportunities and customer stickiness, sustaining cash flow and reducing revenue volatility over months.
Read all positive factors
Tata Communications Limited (TATACOMM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹450.23B
Dividend Yield1.39%
Average Volume (3M)37.38K
Price to Earnings (P/E)38.4
Beta (1Y)1.17
Revenue Growth6.96%
EPS Growth-31.56%
CountryIN
Employees7,144
SectorServices
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.22
Shares Outstanding285,000,000
10 Day Avg. Volume11,946
30 Day Avg. Volume37,379
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)60.07
Revenue Forecast (FY)₹270.69B
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 t...
How the Company Makes Money
Tata Communications makes money primarily by selling communications and digital infrastructure services under long-term and recurring commercial contracts to enterprise customers and other carriers/service providers. Key revenue streams typically ...
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 | 238.48B | 248.03B | 231.09B | 207.85B | 178.38B | 167.25B |
| Gross Profit | 60.15B | 56.75B | 67.67B | 64.09B | 61.12B | 58.13B |
| EBITDA | 41.26B | 48.22B | 40.43B | 38.91B | 38.71B | 37.68B |
| Net Income | 16.49B | 10.44B | 18.36B | 9.68B | 17.96B | 14.82B |
Balance Sheet | ||||||
| Total Assets | 272.04B | 284.04B | 265.85B | 245.61B | 205.53B | 196.68B |
| Cash, Cash Equivalents and Short-Term Investments | 4.57B | 9.91B | 15.03B | 9.36B | 17.69B | 11.74B |
| Total Debt | 133.31B | 122.49B | 123.57B | 112.63B | 85.77B | 91.22B |
| Total Liabilities | 243.53B | 247.53B | 235.60B | 227.71B | 190.04B | 187.12B |
| Stockholders Equity | 28.48B | 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
Negative
1804.20
Price Trends
1523.98
Negative
1648.69
Negative
1687.27
Negative
Market Momentum
5.21
Negative
54.83
Neutral
89.82
Negative
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 1448.01, above the 50-day MA of 1523.98, and above the 200-day MA of 1687.27, indicating a neutral trend. The MACD of 5.21 indicates Negative momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 89.82 is Negative, 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹126.72B | 17.72 | ― | 1.33% | 12.75% | 28.74% | |
73 Outperform | ₹111.77B | 20.71 | ― | 3.23% | 14.59% | 14.87% | |
73 Outperform | ₹28.34B | 24.27 | ― | 4.14% | 7.36% | 33.18% | |
62 Neutral | ₹149.23B | 48.02 | ― | 1.13% | 21.97% | 10.85% | |
60 Neutral | ₹103.89B | 47.77 | ― | 0.79% | 30.48% | 20.51% | |
57 Neutral | ₹450.23B | 38.36 | ― | 1.39% | 6.96% | -31.56% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% |
* Services Sector Average
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Tata Communications Limited Corporate Events
Tata Communications Uploads FY 2026 Earnings Call Recording for Investor Access
Apr 22, 2026
Tata Communications has notified stock exchanges that the recording of its earnings call discussing audited financial results for the quarter and financial year ended March 31, 2026 has been made available on its website. The disclosure, made unde...
Tata Communications CFO Kabir Ahmed Shakir Resigns; Successor Search Underway
Feb 3, 2026
Tata Communications has announced that its Chief Financial Officer, Kabir Ahmed Shakir, has tendered his resignation, with his final date of cessation to be decided and announced later. The company has begun the process of identifying a successor ...
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.