Tata Communications Ltd.
NSE: TATACOMMTata Communications Ltd.: A 30-second snapshot
Tata Communications trades at ₹1,942.6, 15.7% above its 200-DMA of ₹1,679.8 and 22.7% above its 50-DMA of ₹1,584.7, with RSI at 70.4. Trailing PE stands at 53.1 against a forward PE of 23.9, while net profit margin is 4.04% and debt-to-equity is 335.5 on a rising debt trend. The stock ranks 1st among 6 Telecom peers on ROE (31.1%) but 6th on quality score (5/100).
P/E
53.1
Forward P/E
23.9
ROE
+31.1%
Debt / Equity
335.49
Profit Margin
+4.0%
Div. Yield
+0.9%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
40/100
News
5 headlines · 4 positive · 0 negative
Tata Communications establishes TComm Turkey as wholly owned subsidiary - Business Upturn
Business Upturn
Tata Comm acquires stake in Clean Max SPV - Business Standard
Business Standard
Tata Communications Limited announces Annual dividend, payable on August 08, 2026 - marketscreener.com
marketscreener.com
Tata Sons Board Meeting Today: Tata group stocks rally ahead of key meet; Tejas, Tata Chemical, Tata Comm lead gains - ET Now
ET Now
टाटा कम्युनिकेशन शेयर विश्लेषण - Hindustan Hindi News
Hindustan Hindi News
Recent context
- ·Tata Communications incorporated TComm Turkey as a wholly owned subsidiary (May 2026), extending its international footprint in a region where it previously operated through partnerships.
- ·The company acquired a stake in Clean Max SPV (May 2026), signalling a step toward renewable energy sourcing — a cost and ESG consideration for a network-intensive business.
- ·An annual dividend was announced payable August 8, 2026, concurrent with a Tata Sons board meeting that contributed to a broader rally in Tata group stocks including TATACOMM.
Strengths
- +ROE of 31.1% is the highest among the 6-stock Telecom peer set, ahead of Bharti Hexacom (26.5%), Indus Towers (19.8%), and Bharti Airtel (19.4%).
- +Forward PE of 23.9 represents a 55% discount to trailing PE of 53.1, implying the consensus earnings model projects a significant improvement in near-term profitability.
- +Price is 15.7% above the 200-DMA (₹1,679.8) and 22.7% above the 50-DMA (₹1,584.7), with a 52-week drawdown of only 5.2% — near 52-week highs.
- +Revenue has grown at a 5-year CAGR of 9.4%, and the company declared an annual dividend payable August 2026, maintaining dividend continuity despite earnings pressure.
Weaknesses
- −D/E of 335.5 on a rising trend is extreme for a non-financial company; the debt load directly inflates ROE while compressing headroom for margin expansion or balance-sheet flexibility.
- −5-year earnings declined 74.7% against 9.4% revenue growth, with net profit margin at 4.04% — the gap between revenue trajectory and earnings trajectory indicates sustained cost or interest pressure over the period.
- −Quality score of 5/100 ranks last (6th of 6) in the Telecom peer set; consistency score of 47 and FCF positive in only 4 of available years indicate uneven financial performance across the measurement window.
- −RSI of 70.4 places the stock in overbought territory following a 19.2% 3-month gain; nearest support at ₹1,681 is 13.5% below current price, with deeper support at ₹1,530 (21.3% below).
Open questions
- ?Does the 74.7% decline in 5-year earnings reflect a structural margin problem in the core network business, or is it driven by specific one-time charges that have since resolved — and what does the FY26 earnings trajectory indicate?
- ?At a D/E of 335.5 on a rising trend, what is the interest-coverage ratio, and how sensitive is net income to further increases in borrowing costs or refinancing terms?
- ?The forward PE of 23.9 vs. trailing PE of 53.1 implies a substantial earnings recovery in analyst models — what are the specific revenue or margin assumptions underpinning that improvement?
- ?How does Tata Communications’ enterprise connectivity and cloud services segment perform relative to its traditional data network business, and is the revenue mix shifting in a way that could change the margin profile?
Peer comparison: Telecom
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| TATACOMM | Tata Communications Ltd.You're viewing | 53.1 | +31.1% | 5 |
| Industry avg | across 5 peers | 26.2 | +18.2% | 40 |
| INDUSTOWER | Indus Towers Ltd. | 15.9 | +19.8% | 64 |
| IDEA | Vodafone Idea Ltd. | 4.3 | — | 41 |
| HFCL | HFCL Ltd. | — | +7.3% | 34 |
| BHARTIARTL | Bharti Airtel Ltd. | 40.7 | +19.4% | 32 |
| BHARTIHEXA | Bharti Hexacom Ltd. | 43.6 | +26.5% | 30 |
Technical state
Current price
₹1,942.60
SMA 50
₹1,584.66
SMA 200
₹1,679.79
RSI (14)
70.4 (overbought)
From 52w high
-5.2%
1Y return
+16.8%
3M return
+19.2%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 335.5 is extreme for a non-financial, non-bank company and the debt trend is classified as rising; 5-year earnings declined 74.7% despite 9.4% revenue growth, and net profit margin stands at just 4.04%, indicating the cost base has outpaced revenue expansion over the period.
- highQuality score of 5/100 — ranked 6th of 6 Telecom peers — alongside a consistency score of 47, FCF positive in only 4 of available years, and ROE above 15% in only 4 years, reflects persistent structural pressure on profitability rather than a transient shock.
- mediumRSI of 70.43 is in overbought territory; the stock has risen 19.2% in 3 months and 16.8% over 1 year. Nearest identified support levels are at ₹1,681 and ₹1,530, representing drawdowns of 13.5% and 21.3% from current price of ₹1,942.6 respectively.
- lowNews sample is limited to 5 articles, constraining the reliability of the sentiment signal; the overallLabel is positive but the thin sample warrants caution in weighting news-derived conclusions.
Cross-section contradictions
- ROE of 31.1% — the highest among 6 Telecom peers — coexists with a quality score of 5/100 (lowest-ranked in the peer set). The elevated ROE is mechanically amplified by a D/E of 335.5 and does not appear to reflect unleveraged operating efficiency.
- Revenue grew 9.4% over 5 years while earnings fell 74.7% over the same period, representing a structural divergence between top-line expansion and bottom-line retention across the measurement window.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days