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Tata Communications Ltd

NSE: TATACOMM BSE: 500483IT / Software

Tata Communications was incorporated on March 19, 1986 as VSNL. In February 2002, the Government of India, as per their disinvestments plan, sold 25% of their holding in the company to the strategic partner. Consequently, the company was taken over under the administrative control of TATA. [1] It is the leading global digital ecosystem enabler. It has a leadership position in emerging markets, and an infrastructure that spans the globe. It delivers managed solutions to multinational companies and service providers. It partners with 300 of the Fortune 500 companies with their state-of the-art solutions, including a wide range of communication, collaboration, cloud, mobility, connected solutions, network and data center services. [2]

₹1,666
52W: ₹1322 — ₹2004
PE 61.4 · Book ₹371 · +349% vs book
Market Cap₹47,490 Cr
Stock P/E61.4Price to Earnings
ROCE8.69%Return on Capital
ROE7.36%Return on Equity
Div. Yield1.49%Face Value ₹10

Strengths

  • +Company has been maintaining a healthy dividend payout of 68.4%

Weaknesses

  • −Stock is trading at 4.49 times its book value
  • −The company has delivered a poor sales growth of 3.45% over past five years.
  • −Company has a low return on equity of 6.91% over last 3 years.
  • −Earnings include an other income of Rs.647 Cr.

Shareholding Pattern

Promoters58.86%
FIIs14.44%
DIIs19.14%
Public7.56%
CategoryJun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters58.86%58.86%58.86%58.86%58.86%58.86%58.86%58.86%
FIIs18.09%18.06%▼0.017.8%▼0.316.99%▼0.817.17%▲0.213.61%▼3.614.46%▲0.914.44%▼0.0
DIIs13.15%13.45%▲0.313.66%▲0.214.51%▲0.814.83%▲0.319.03%▲4.218.49%▼0.519.14%▲0.7
Public9.91%9.62%▼0.39.68%▲0.19.63%▼0.09.14%▼0.58.5%▼0.68.19%▼0.37.56%▼0.6

Financial Statements

MetricDec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales2,0052,0041,8091,7941,8151,8601,8231,8031,8691,881
Expenses1,5141,5321,4041,3851,3931,4991,4661,3521,4181,392
Operating Profit492472404409421362357451450490
OPM %25%24%22%23%23%19%20%25%24%26%
Net Profit-28174342-120132697136211278169
EPS ₹-0.986.112-4.214.6224.464.787.49.755.92

AI Insights

Revenue Trend

Mar 2026 revenue at ₹7,376Cr, up 1.3% YoY. OPM at 24%.

Debt Position

Borrowings at ₹5,487Cr. Debt-to-equity ratio: 0.53x. Moderate leverage.

Capex Cycle

CWIP at ₹414Cr (7% of fixed assets). Moderate ongoing capital expenditure.

Institutional Flow

DIIs: 19.14% (+5.07pp change). FIIs: 14.44% (-2.74pp change). Promoters hold 58.86%.

Margin & Efficiency

ROCE declining from 10% (Mar 2015) to 9% (Mar 2026). Working capital days: -179.

Valuation

PE 61.4x with 8.69% ROCE. Price is 349% above book value of ₹371. Dividend yield: 1.49%.

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