Tata Communications Limited (IN:TATACOMM)
:TATACOMM
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Tata Communications Limited
(TATACOMM)
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Rating:60Neutral
Price Target:
₹1,864.00
▲(3.31% Upside)
Action:Reiterated
Date:05/21/26
The score is primarily held back by weakening financial quality (notable 2026 margin compression), elevated leverage, and only moderate/volatile free-cash-flow conversion. Technicals are a positive offset due to strong trend momentum, but overbought indicators add near-term risk. Valuation is also a headwind given the high P/E and modest dividend yield.
Positive Factors
Global digital infrastructure & recurring revenue
Owning and operating a global network and interconnection ecosystem supports durable recurring revenue from enterprises, carriers and governments. This asset base enables scale, cross-sell of cloud, security and managed services, and sticky contracts that support multi-month to multi-year revenue visibility.
Negative Factors
High leverage
Material leverage limits financial flexibility and increases interest and refinancing exposure, especially for a capital-intensive network operator. High net debt magnifies earnings shocks, reduces the ability to pursue opportunistic investments, and requires consistent cash generation to avoid stress from rising rates or cyclical slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Global digital infrastructure & recurring revenue
Owning and operating a global network and interconnection ecosystem supports durable recurring revenue from enterprises, carriers and governments. This asset base enables scale, cross-sell of cloud, security and managed services, and sticky contracts that support multi-month to multi-year revenue visibility.
Read all positive factors
Tata Communications Limited (TATACOMM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹506.59B
Dividend Yield1.39%
Average Volume (3M)37.38K
Price to Earnings (P/E)36.5
Beta (1Y)1.12
Revenue Growth6.96%
EPS Growth-31.56%
CountryIN
Employees7,144
SectorServices
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)50.27
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 Target
₹1,860.00Price Target Upside3.09% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)58.97
Revenue Forecast (FY)₹270.61B
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 recurring connectivity and managed digital infrastructure services to enterprise and carrier customers under contracts (often subscription- or capacity-based), along with usage-based charges for...
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
Positive
1804.20
Price Trends
1511.72
Positive
1595.02
Positive
1671.35
Positive
Market Momentum
46.24
Negative
71.25
Negative
75.10
Neutral
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 1598.85, above the 50-day MA of 1511.72, and above the 200-day MA of 1671.35, indicating a bullish trend. The MACD of 46.24 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 75.10 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹111.86B | 19.78 | ― | 3.23% | 14.59% | 14.87% | |
73 Outperform | ₹120.14B | 25.12 | ― | 1.33% | 13.01% | -13.87% | |
73 Outperform | ₹31.45B | 14.60 | ― | 4.14% | 5.71% | 16.48% | |
67 Neutral | ₹102.67B | 13.92 | ― | 0.79% | 23.00% | 15.55% | |
65 Neutral | ₹172.44B | 20.92 | ― | 1.13% | 19.75% | 13.19% | |
60 Neutral | ₹506.59B | 36.47 | ― | 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 Schedules Series of Investor Meetings in Mumbai
May 13, 2026
Tata Communications has notified stock exchanges that it will participate in a series of analyst and institutional investor conferences in Mumbai between May 20 and June 8, 2026. The company will join events hosted by Centrum, 360 ONE Capital, and...
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...
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.