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Last Updated: April 2, 2026, 2:54 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 500483 | NSE: TATACOMM

Tata Communications Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹1,553.88Undervalued by 11.79%vs CMP ₹1,390.00

P/E (34.6) × ROE (55.2%) × BV (₹99.90) × DY (1.80%)

₹789.36Overvalued by 43.21%vs CMP ₹1,390.00
MoS: -76.1% (Negative)Confidence: 58/100 (Moderate)Models: 2 Under, 7 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹1,611.7022%Under (+15.9%)
Graham NumberEarnings₹374.5416%Over (-73.1%)
Earnings PowerEarnings₹20.1113%Over (-98.6%)
DCFCash Flow₹333.8313%Over (-76%)
Net Asset ValueAssets₹99.917%Over (-92.8%)
EV/EBITDAEnterprise₹2,044.579%Under (+47.1%)
Earnings YieldEarnings₹624.107%Over (-55.1%)
ROCE CapitalReturns₹733.159%Over (-47.3%)
Revenue MultipleRevenue₹810.725%Over (-41.7%)
Consensus (9 models)₹789.36100%Overvalued
Key Drivers: Wide model spread (₹20–₹2,045) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 3.7%

*Investments are subject to market risks

Investment Snapshot

57
Tata Communications Ltd scores 57/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health58/100 · Moderate
ROCE 14.8% GoodROE 55.2% ExcellentD/E 84.89 High debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money45/100 · Moderate
FII holding down -2.53% (6mo) SellingDII holding up 3.98% MF buyingPromoter holding at 58.9% Stable
Earnings Quality40/100 · Moderate
OPM contracting (25% → 20%) Declining
Quarterly Momentum80/100 · Strong
Revenue (4Q): +6% YoY GrowingProfit (4Q): +59% YoY Strong
Industry Rank60/100 · Moderate
P/E 34.6 vs industry 35.8 In-lineROCE 14.8% vs industry 14.5% AverageROE 55.2% vs industry 16.3% Above peers3Y sales CAGR: 11% Moderate

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 2:54 am

Market Cap 39,621 Cr.
Current Price 1,390
Intrinsic Value₹789.36
High / Low 2,004/1,342
Stock P/E34.6
Book Value 99.9
Dividend Yield1.80 %
ROCE14.8 %
ROE55.2 %
Face Value 10.0
PEG Ratio9.30

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tata Communications Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Tata Communications Ltd 39,621 Cr. 1,390 2,004/1,34234.6 99.91.80 %14.8 %55.2 % 10.0
Tejas Networks Ltd 7,466 Cr. 420 914/294 1870.60 %15.5 %12.8 % 10.0
Tata Teleservices (Maharashtra) Ltd 6,879 Cr. 35.2 81.2/30.1 1010.00 %50.3 %% 10.0
Mahanagar Telephone Nigam Ltd 1,519 Cr. 24.1 58.2/20.3 4570.00 %6.76 %% 10.0
OnMobile Global Ltd 461 Cr. 43.4 75.1/40.026.5 61.50.00 %2.34 %4.94 % 10.0
Industry Average154,437.75 Cr288.7835.80148.490.25%14.53%16.28%8.54

All Competitor Stocks of Tata Communications Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 4,5284,5694,7714,8725,5885,6455,5925,7285,7985,9905,9606,1006,189
Expenses 3,4513,5343,7473,8574,4354,5694,4564,5984,6174,8684,8234,9264,961
Operating Profit 1,0771,0341,0241,0151,1531,0761,1371,1291,1811,1221,1371,1741,228
OPM % 24%23%21%21%21%19%20%20%20%19%19%19%20%
Other Income 316219125-212-328529-7926-46-38183
Interest 123132131137184186170189187182177202201
Depreciation 555618580605603651634648637672666679751
Profit before tax 4313455042981542074173213501,193249255458
Tax % 10%8%26%26%74%-52%21%30%36%15%26%32%22%
Net Profit 395327382221453223332272361,041190183364
EPS in Rs 13.8211.4413.397.741.5711.2711.687.978.2836.506.676.4212.82

Last Updated: February 6, 2026, 12:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 24, 2026, 2:16 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 17,71419,91318,14917,62016,77216,52517,06817,10016,72517,83820,96923,10924,239
Expenses 15,70816,91915,71415,21414,35913,78013,77912,84012,49813,52016,73918,54019,578
Operating Profit 2,0062,9942,4342,4062,4122,7453,2894,2614,2274,3184,2304,5694,661
OPM % 11%15%13%14%14%17%19%25%25%24%20%20%19%
Other Income 717291821,294-11662-32182338440471,0331,025
Interest 427751409367344397471420360432644729762
Depreciation 1,8522,1611,8641,8661,9062,0682,3582,3142,2052,2622,4702,5922,768
Profit before tax 4443732431,467463431401,6092,0002,0631,1632,2812,155
Tax % 77%99%96%16%778%80%162%22%26%14%18%21%
Net Profit 1033101,235-326-80-851,2521,4851,8019701,8371,778
EPS in Rs 3.560.050.3043.26-11.53-2.89-3.0243.8851.9963.0233.9864.4362.41
Dividend Payout % 126%12,151%1,412%14%-39%-156%-133%32%40%33%49%39%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)-97.09%233.33%12250.00%-126.40%75.46%-6.25%1572.94%18.61%21.28%-46.14%89.38%
Change in YoY Net Profit Growth (%)0.00%330.42%12016.67%-12376.40%201.86%-81.71%1579.19%-1554.33%2.67%-67.42%135.52%

Tata Communications Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:6%
3 Years:11%
TTM:8%
Compounded Profit Growth
10 Years:67%
5 Years:33%
3 Years:-3%
TTM:13%
Stock Price CAGR
10 Years:21%
5 Years:11%
3 Years:8%
1 Year:-21%
Return on Equity
10 Years:%
5 Years:%
3 Years:78%
Last Year:55%

Last Updated: September 5, 2025, 4:00 am

Balance Sheet

Last Updated: December 4, 2025, 1:14 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 285285285285285285285285285285285285285
Reserves 51536-6481,307214-467-1,563-1706431,2331,5012,7362,563
Borrowings 13,69413,07614,2319,2148,9279,93512,41311,3949,1228,57711,26312,35713,331
Other Liabilities 10,45610,79811,23010,22810,13110,19810,9969,7979,58810,42411,31611,06511,025
Total Liabilities 24,95024,19525,09821,03319,55719,95122,13121,30619,63820,51924,36526,44427,204
Fixed Assets 14,91414,70414,44410,92910,79711,28912,76811,52010,93610,50013,46713,91914,034
CWIP 6536388007515203613494938521,1481,3271,1001,224
Investments 1,7581,7681,8372,4341,2501,4911,5632,2331,5651,9511,6082,7142,518
Other Assets 7,6257,0868,0176,9206,9906,8097,4517,0606,2846,9217,9638,7119,428
Total Assets 24,95024,19525,09821,03319,55719,95122,13121,30619,63820,51924,36526,44427,204

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 3,0623,0282,3632,3941,7131,8442,5253,1804,2044,3843,1822,911
Cash from Investing Activity + -2,280-1,908-2,313940-500-2,284-1,521-2,007-894-1,836-2,641-2,173
Cash from Financing Activity + -186-1,388-9-3,276-959-28-942-1,205-3,431-2,241-813-936
Net Cash Flow 596-2684158254-46761-32-121308-272-198
Free Cash Flow 1,2741,2573345981021068441,8282,5542,8991,110711
CFO/OP 162%105%114%130%82%88%85%86%97%106%80%82%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow-11.00-11.00-12.00-7.00-6.00-7.00-9.00-7.00-5.00-4.00-7.00-8.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 564661546466695656566563
Inventory Days
Days Payable
Cash Conversion Cycle 564661546466695656566563
Working Capital Days -134-155-139-105-125-124-150-88-103-119-151-107
ROCE %4%8%7%23%8%8%9%18%22%24%18%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%
FIIs 16.99%17.18%17.53%19.20%18.24%18.09%18.06%17.80%16.99%17.17%13.61%14.46%
DIIs 14.02%14.07%13.55%12.12%13.14%13.15%13.45%13.66%14.51%14.83%19.03%18.49%
Public 10.11%9.88%10.06%9.81%9.77%9.91%9.62%9.68%9.63%9.14%8.50%8.19%
No. of Shareholders 1,82,9401,70,8571,85,9761,95,6981,93,1572,03,4171,85,0241,90,3451,91,7411,91,4991,86,9481,82,123

Shareholding Pattern Chart

No. of Shareholders

Tata Communications Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid Cap Fund 11,148,059 1.9 1750.8N/AN/AN/A
Mirae Asset Large & Midcap Fund 4,232,839 1.57 664.773,989,8812026-02-23 01:20:476.09%
Quant Mid Cap Fund 3,963,991 8.55 622.54739,0772025-12-08 00:26:18436.34%
ICICI Prudential India Opportunities Fund 3,101,097 1.39 487.033,100,6782026-02-23 01:21:590.01%
Mirae Asset Midcap Fund 2,861,306 2.54 449.372,661,3062026-02-21 23:56:267.52%
Mirae Asset ELSS Tax Saver Fund 2,582,747 1.55 405.621,852,7472026-02-21 23:56:2639.4%
SBI ELSS Tax Saver Fund 2,410,947 1.19 378.64N/AN/AN/A
Kotak Multicap Fund 1,254,770 0.87 197.06N/AN/AN/A
Tata Large & Mid Cap Fund 1,150,000 2.22 180.61N/AN/AN/A
HDFC Multi Cap Fund 1,026,942 0.84 161.28N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 10.0010.0010.0010.0010.00
Basic EPS (Rs.) 64.4433.9863.0251.9943.88
Diluted EPS (Rs.) 64.3933.9763.0251.9943.88
Cash EPS (Rs.) 142.99119.97141.36129.21125.18
Book Value[Excl.RevalReserv]/Share (Rs.) 106.0162.8254.3433.555.04
Book Value[Incl.RevalReserv]/Share (Rs.) 106.0162.8254.3433.555.04
Revenue From Operations / Share (Rs.) 810.83735.75625.90586.83600.00
PBDIT / Share (Rs.) 164.89158.34164.26159.96154.99
PBIT / Share (Rs.) 73.9471.6884.9082.6173.81
PBT / Share (Rs.) 72.6240.8172.4070.1756.44
Net Profit / Share (Rs.) 52.0433.3261.9951.8543.99
NP After MI And SOA / Share (Rs.) 64.4333.9863.0251.9943.88
PBDIT Margin (%) 20.3321.5226.2427.2525.83
PBIT Margin (%) 9.119.7413.5614.0712.30
PBT Margin (%) 8.955.5411.5611.959.40
Net Profit Margin (%) 6.414.529.908.837.33
NP After MI And SOA Margin (%) 7.944.6110.068.857.31
Return on Networth / Equity (%) 60.7854.20118.29159.741083.17
Return on Capital Employeed (%) 14.9618.7522.4720.9515.50
Return On Assets (%) 6.903.948.737.535.86
Long Term Debt / Equity (X) 2.322.663.306.4676.97
Total Debt / Equity (X) 3.605.664.968.5184.89
Asset Turnover Ratio (%) 0.900.920.880.360.34
Current Ratio (X) 0.570.430.590.570.75
Quick Ratio (X) 0.560.430.570.570.74
Inventory Turnover Ratio (X) 191.470.000.000.000.00
Dividend Payout Ratio (NP) (%) 25.9161.8032.8426.929.11
Dividend Payout Ratio (CP) (%) 10.7417.4014.5310.823.19
Earning Retention Ratio (%) 74.0938.2067.1673.0890.89
Cash Earning Retention Ratio (%) 89.2682.6085.4789.1896.81
Interest Coverage Ratio (X) 6.457.0110.8212.6510.51
Interest Coverage Ratio (Post Tax) (X) 2.222.844.915.094.16
Enterprise Value (Cr.) 55275.8866599.8241978.0542182.7439184.89
EV / Net Operating Revenue (X) 2.393.182.352.522.29
EV / EBITDA (X) 11.7614.768.979.258.87
MarketCap / Net Operating Revenue (X) 1.952.731.992.091.77
Retention Ratios (%) 74.0838.1967.1573.0790.88
Price / BV (X) 14.8932.0923.3737.73262.29
Price / Net Operating Revenue (X) 1.952.731.992.091.77
EarningsYield 0.040.010.050.040.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Tata Communications Ltd. is a Public Limited Listed company incorporated on 19/03/1986 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L64200MH1986PLC039266 and registration number is 039266. Currently Company is involved in the business activities of Other telecommunications activities. Company's Total Operating Revenue is Rs. 7277.86 Cr. and Equity Capital is Rs. 285.00 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
Telecom ServicesVSB, Mahatma Gandhi Road, Fort, Mumbai Maharashtra 400001Contact not found
Management
NamePosition Held
Mr. N Ganapathy SubramaniamChairman & Non-Exe.Director
Mr. A S LakshminarayananManaging Director & CEO
Mr. Ankur VermaNon Executive Director
Mr. Ashok SinhaIndependent Director
Mr. Krishnakumar NatarajanIndependent Director
Ms. Sangeeta AnandIndependent Director
Mr. P Jagdish RaoIndependent Director
Mr. Sujit Kumar VarmaIndependent Director

FAQ

What is the intrinsic value of Tata Communications Ltd and is it undervalued?

As of 03 April 2026, Tata Communications Ltd's intrinsic value is ₹789.36, which is 43.21% lower than the current market price of ₹1,390.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (55.2 %), book value (₹99.9), dividend yield (1.80 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Tata Communications Ltd?

Tata Communications Ltd is trading at ₹1,390.00 as of 03 April 2026, with a FY2026-2027 high of ₹2,004 and low of ₹1,342. The stock is currently near its 52-week low. Market cap stands at ₹39,621 Cr..

How does Tata Communications Ltd's P/E ratio compare to its industry?

Tata Communications Ltd has a P/E ratio of 34.6, which is below the industry average of 35.80. This is broadly in line with or below the industry average.

Is Tata Communications Ltd financially healthy?

Key indicators for Tata Communications Ltd: ROCE of 14.8 % is moderate; ROE of 55.2 % shows strong shareholder returns. Dividend yield is 1.80 %.

Is Tata Communications Ltd profitable and how is the profit trend?

Tata Communications Ltd reported a net profit of ₹1,837 Cr in Mar 2025 on revenue of ₹23,109 Cr. Compared to ₹1,485 Cr in Mar 2022, the net profit shows an improving trend.

Does Tata Communications Ltd pay dividends?

Tata Communications Ltd has a dividend yield of 1.80 % at the current price of ₹1,390.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Communications Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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