Tata Communications Limited (TATACOMM) AI Stock Analysis

• Market Cap: ₹459.12B
• Dividend Yield: 1.55%
• Average Volume (3M): 213.85K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 1.12
• Revenue Growth: 7.72%
• EPS Growth: 54.92%
• Country: IN
• Employees: 7,144
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 8.14
• Shares Outstanding: 285,000,000
• 10 Day Avg. Volume: 12,684
• 30 Day Avg. Volume: 213,855
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,963.00
• Price Target Upside: 21.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: ₹1,716.00 ▲(6.52% Upside)

Tata Communications' overall stock score is primarily influenced by its financial performance, which shows strong revenue and profit growth but is offset by high leverage. Technical analysis indicates a bearish trend with limited momentum, and the valuation suggests the stock may be overvalued. The absence of earnings call data and corporate events means these factors do not impact the score.

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 makes money through a diversified revenue model consisting of multiple streams. The primary source of revenue comes from its Global Network Services, which include the provision of high-speed internet, IP transit, and network management services to businesses and telecom carriers. The company also generates significant income from its Managed Services, which encompass cloud hosting, unified communications, and cybersecurity solutions tailored to enterprise needs. Additionally, Tata Communications earns revenue through its Voice Solutions, offering international and domestic voice services. Strategic partnerships and collaborations with technology providers and enterprises further bolster its earnings, allowing Tata Communications to expand its market reach and enhance its service offerings.

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. Continued emphasis on managing debt levels will be essential for sustaining long-term financial health.

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	231.89B	231.09B	209.69B	178.38B	167.25B	171.00B
Gross Profit	76.78B	130.61B	64.38B	114.63B	105.23B	26.71B
EBITDA	53.83B	53.91B	42.77B	47.58B	45.65B	43.43B
Net Income	15.25B	15.25B	9.68B	17.96B	14.82B	12.51B
Balance Sheet
Total Assets	265.85B	265.85B	245.61B	205.53B	196.68B	213.33B
Cash, Cash Equivalents and Short-Term Investments	15.03B	15.03B	9.36B	17.69B	11.74B	22.08B
Total Debt	123.57B	123.57B	112.63B	85.77B	91.22B	113.94B
Total Liabilities	235.60B	235.60B	227.71B	190.04B	187.12B	211.90B
Stockholders Equity	30.21B	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: 1610.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1610.95 is below the 20-day moving average (MA) of 1618.88, below the 50-day MA of 1652.50, and below the 200-day MA of 1618.91, indicating a bearish trend. The MACD of 6.35 indicates Negative momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 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
INDIAMART	75 Outperform	₹141.99B	24.03	28.88%	1.27%	14.70%	62.33%
MPSLTD	73 Outperform	₹37.61B	23.57	31.12%	3.77%	23.41%	39.57%
FSL	69 Neutral	₹244.96B	38.47	15.09%	1.14%	27.41%	19.27%
RAILTEL	67 Neutral	₹121.25B	38.22	14.99%	0.75%	37.80%	23.69%
IEX	65 Neutral	₹122.92B	27.09	37.77%	3.26%	18.51%	22.17%
TATACOMM	63 Neutral	₹459.12B	32.23	―	1.55%	7.72%	54.92%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Tata Communications Limited Corporate Events

Tata Communications and Cisco Partner to Revolutionize IoT Connectivity

Tata Communications has announced a strategic collaboration with Cisco to enhance IoT and eSIM connectivity for global enterprises. This partnership aims to address challenges in managing large fleets of connected devices by integrating Tata Communications’ MOVE™ eSIM solution with Cisco’s IoT Control Center. The collaboration promises improved device management, reduced integration efforts, and accelerated digital transformation, offering enterprises greater control and efficiency in their IoT operations.