Tata Communications Limited (TATACOMM)
Mid CapTelecom stocks · Mid cap · NSE
Tata Communications is a global commtech player serving over 50% of the Global Fortune 500, with ~60% of revenue from international markets. It offers a broad portfolio including network backbone, cloud, security infrastructure, and an AI-enabled interaction fabric, aiming to provide unified infrastructure for enterprise AI transformation.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -32% YoY · margin compression · Rev +10% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6,583 Cr | +10.4% | +0.4% |
| EBITDA | ₹1,230 Cr | +8.2% | -4.2% |
| Operating margin | 19.0% | +0 bps | -100 bps |
| PAT | ₹130 Cr | -31.6% | -49.8% |
| PAT margin | 2.0% | -122 bps | -198 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 consolidated revenue grew 9.4% YoY, with data revenue up 11.5% YoY and digital portfolio growing 16.7% YoY. EBITDA increased 14.4% YoY, and net debt-to-EBITDA improved to 1.99x. PAT declined significantly YoY due to prior year asset sales.
Management is focused on driving profitable growth and disciplined capital allocation, with strong momentum in the digital portfolio. The new CEO emphasizes integrating offerings to capitalize on enterprise AI and backend digitization, which aligns with long-term industry trends. Improving debt metrics and FCF are positive.
Revenue by Geography
Latest issuer-disclosed distribution across 2 reported categories.
Enterprise AI at Scale
Uniquely combining network, cloud, security, and AI-enabled Interaction Fabric into a programmable platform to power enterprise AI at scale globally.
Backend Digitization
Big opportunity in developing markets where customer front-end is digitized but supply chain, factories, and logistics back-end are not.
Next-Gen Connectivity Platforms
Leading the pack with 24% growth YoY, providing AI-ready connectivity with higher bandwidth and speed.
IZO Multi Cloud Connect
Connects across multiple locations, provides direct low latency, lowers egress cost, and is a scalable interconnect platform for large multi-cloud environments.
Data Center Connectivity
IZO DC-to-DC connectivity globally is a big opportunity, expected to be at least a $1 billion opportunity in India by 2030.
Data Center Bandwidth Demand
Mumbai expects 10-12 new data centers, leading to a 4x increase in data center bandwidth need, which TATACOMM is positioned to capture.
AI-led Transformation
The real ROI of AI investments comes when AI works with enterprise intelligence and data, requiring unified infrastructure.
Backend Digitization Opportunity
Significant white space in developing markets for digitizing supply chains, factories, and logistics using network, cloud, and Edge capabilities.
Growth of GCCs in India
Ability to enable Global Capability Centers (GCCs) with secure, cloud-ready, globally connected network environments allows capitalization on their growth.
Exploding Data Center Demand in India
The number of data centers coming up in India is expected to explode, creating demand for resilient, low-latency B2B network connectivity.
Geopolitical Developments in West Asia
Potential near-term headwinds arising from geopolitical developments in West Asia.
Demand Side Risks from Geopolitics
Seeing some events getting postponed and cancelled, like F1 and MotoGP races, impacting demand.
Geopolitical Instability
Assessing multiple risks, including demand side impacts (postponed events) and potential cost side challenges (energy, chip-related costs).
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison provides a clear view of overall business trends and full-year performance, while QoQ highlights sequential momentum, particularly in the fast-growing digital portfolio and for tracking quarterly margin shifts.
Consolidated Revenue
FY26: INR 24,803 crore (+7.3% YoY); Q4 FY26: INR 6,554 crore (+9.4% YoY, +5.9% QoQ). Forex-normalized Q4 revenue growth: +3.7% YoY, +3.8% QoQ.
Data Revenue
FY26: INR 21,352 crore (+9.4% YoY); Q4 FY26: INR 5,684 crore (+11.5% YoY, +6.1% QoQ).
Digital Portfolio Growth
FY26: +16.7% YoY; Q4 FY26: +9.4% QoQ. Growth was broad-based, with Media and MOVE/IoT growing north of 20% QoQ.
Next-Gen Connectivity Growth
FY26: +24% YoY.
Prioritize Profitable Growth
Entering a phase to prioritize profitable growth, focusing on improving quality and durability of growth and absolute EBITDA growth YoY.
Strengthen Execution Momentum
Immediate priority is ensuring continuity in strategy, strengthening execution momentum, and delivering profitable growth.
Digital Portfolio Breakeven
Focus on improving digital product portfolio profitability and accelerating high-margin products to achieve breakeven at the earliest.
Integrated Storytelling
Need to do a better job of explaining the full, integrated portfolio and unified infrastructure story to customers to scale enterprise AI.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Digital Portfolio Profitability | Losses on the digital portfolio have come down in Q4. | Progress towards breakeven for the digital portfolio and sustained improvement in digital margins. |
| Absolute EBITDA Growth | Q4 absolute EBITDA grew in double-digits. | Sustained healthy YoY absolute EBITDA growth, indicating improved quality and durability of growth. |
| Order Book Conversion to Revenue | Healthy double-digit YoY order book growth, but underlying revenue growth is less than 9%. | Acceleration in revenue growth, ideally mid-teens or early teens, reflecting better conversion of the strong order book. |
| Impact of Geopolitical Developments | Demand side risks (postponed events) observed; cost side (energy, chip) tracked closely with no big issue yet. | Any material impact on demand or cost side from geopolitical events, especially in West Asia. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 -4.6% / mo · MACD +
Technical chart
TATACOMMdaily · 1Y · AUTO+20.1%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 54. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~4.8% over last month) — short-term momentum negative.
- RSI(14) at 54 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 17% off 52W high · 33% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 3.6% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +0.6%.
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 36 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 6.1%.
- Cash flow contributes 9/10 to the score.
- Quality contributes 15/20 to the score.
Main drags
- Fair-value margin of safety is negative at -865.5%.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
- Growth is weaker at 5/25; verify the latest quarterly trend.
Telecom valuation: EV/EBITDA against ARPU, debt, and capex
Telecom needs enterprise-value and cash-flow framing because leverage is structurally important.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 52nd percentile of the scored universe and 65th percentile within Telecom. Main check: results consistency is weak at 47/100.
Healthy Trust Lite: Promoter holding is 58.9%. Key concern: Debt/equity is 3.55.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Telecom: 65th pctile, median 66 · Mid: 29th pctile, median 76
53 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 58.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 6.1%.
- ▸11 years of positive FCF.
Trust risks
- ▸Debt/equity is 3.55.
- ▸2 latest quarters had PAT decline worse than 25% YoY.
- ▸Revenue CAGR is 12% but EPS CAGR is -15%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 48.10
- P/B
- 14.51
- EV/EBITDA
- 7.97
- Market Cap
- 50064.00Cr
Profitability
- ROE
- 32.60%
- ROCE
- 14.60%
- ROA
- 3.31%
- Dividend Y
- 1.00%
Growth (CAGR)
- Revenue 5Y
- 8.00%
- EPS 5Y
- -4.00%
- Revenue 3Y
- 12.00%
- EPS 3Y
- -15.00%
Balance Sheet
- Debt/Equity
- 3.55
- Interest Coverage
- 6.38×
- Altman Z
- 2.88
- Book Value
- 121.00
Cash Flow
- FCF Yield
- 6.08%
- FCF Positive Y
- 11/5
- OCF
- 4479.00 Cr
- EPS TTM
- 33.19
Shareholding
- Promoter Hold
- 58.86%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 55%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Telecom, ranked by similarity
Peers
Business-comparable names in Telecom, ranked by similarity
Peers
Business-comparable peers in Telecom — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.