Tata Communications Limited (TATACOMM) AI Stock Analysis

• Market Cap: ₹444.86B
• Dividend Yield: 1.6%
• Average Volume (3M): 173.33K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.07
• 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: 482,885
• 30 Day Avg. Volume: 173,326
• 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: ₹2,004.67
• Price Target Upside: 28.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 63 Neutral
• Price Target: ₹1,804.00 ▲(15.57% Upside)

Tata Communications' overall stock score is primarily influenced by its strong financial performance, characterized by revenue growth and operational efficiency. However, high leverage poses financial risks. Technical indicators suggest bearish momentum, and the stock appears overvalued based on its P/E ratio. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Tata Communications Limited Business Overview & Revenue Model

Company Description

Tata Communications Limited, a part of the Tata Group, is a global digital ecosystem enabler that provides a wide range of services in the telecommunications and technology sectors. The company offers network, cloud, security, and mobility solutions to enterprises, service providers, and partners worldwide. With a robust infrastructure spanning across the globe, Tata Communications plays a pivotal role in enabling digital transformation for businesses by providing them with high-speed connectivity, managed services, and communication solutions.

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: 1560.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 1560.9 is below the 20-day moving average (MA) of 1660.59, below the 50-day MA of 1696.13, and below the 200-day MA of 1633.07, indicating a bearish trend. The MACD of -31.23 indicates Positive momentum. The RSI at 32.79 is Neutral, neither overbought nor oversold. The STOCH value of 11.12 is Positive, 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	80 Outperform	₹159.61B	27.02		1.12%	14.70%	62.33%
MPSLTD	70 Outperform	₹36.64B	23.30		3.87%	23.41%	39.57%
FSL	66 Neutral	₹246.14B	40.75		1.13%	27.41%	19.27%
IEX	65 Neutral	₹126.00B	28.27		2.12%	18.51%	22.17%
TATACOMM	63 Neutral	₹444.86B	31.87		1.60%	7.72%	54.92%
RAILTEL	60 Neutral	₹110.40B	35.72		0.83%	37.80%	23.69%
Sector *	57 Neutral	$1.84B	9.34	8.02%	2.47%	5.38%	-37.86%