WatchTalking point
Profit lagging revenue
Revenue grew 7.3% but profit declined 45.7%, so the company kept less of each rupee of revenue as profit.
Importance 74 / 95 · growth
Tata Communications Limited · Research view
Tata Communications Limited
NSE: TATACOMMBSE: 500483ISIN INE151A01013Face value ₹10standalone
₹1,686
+1.80% · 2026-10-01 · 52-wk ₹1,348–₹2,062
Financials to FY2026 · 8 years of history · prices to 2026-10-01consolidatedstandalone
Section 02 · Synthesis
What stands out?
The strongest observations the engine found, ranked. Every line is generated from the filed numbers by a fixed rule — no opinion, no estimate.
StrengthConcernWatchContext
WatchTalking point
Premium valuation, soft growth
The P/E of 51.30× is above the telecom cellular and fixed line services median (29.14×) while profit declined 45.7% last year.
Importance 62 / 95 · valuation
ContextTalking point
High returns, and the market pays up for them
ROE of 29.9% is well above the telecom cellular and fixed line services median (19.4%), and the P/E of 51.30× is above it too (29.14×).
Importance 60 / 95 · valuation
Strength
Earnings consistently backed by cash
Operating cash flow has matched or exceeded reported profit in 6 of the last 6 profit-making years (latest 4.49×).
Importance 55 / 95 · cash quality
Section 03 · The company
Who is this company?
Classified by the exchange under Telecommunication › Telecommunication › Telecom - Services › Telecom - Cellular & Fixed line services.
- Market cap
- ₹48,037 cr
- FY2026 revenue
- ₹7,376 cr
- FY2026 net profit
- ₹794 cr
- Net worth
- ₹10,579 cr
- Total debt
- ₹4,751 cr
- EPS (basic)
- ₹27.86
- Listed
- NSE · BSE
- Reporting
- Ind-ASApr–Mar
Peer set used on this page: 3 telecom - cellular & fixed line services.
Section 04 · Business performance
Is the business growing?
RevenueNet profit
Watch
Revenue grew 7.3% but profit declined 45.7%, so the company kept less of each rupee of revenue as profit.
Rule PROFIT_SLOWER_THAN_REVENUE
- Revenue growth per year
- +4.6%over 7 years
- Revenue growth
- +1.3%vs last year
- Net profit growth
- −24.5%vs last year
- Change in net profit since FY19
- +279%
Net profit fell 45.7% year on year (FY2025 → FY2026).
Revenue has compounded at 6.0% a year over 7 years (₹16,525 → ₹24,803) — steady rather than rapid.
Section 05 · Recent activity
What changed recently?
Quarterly results, the trailing-twelve-months snapshot, and verified corporate actions — kept separate from each other and from the annual story above. Every figure traces to a filed number; nothing here is external news or commentary.
Concern
Q1 FY27 net profit was ₹130 cr, down 31.8% from ₹190 cr a year earlier.
Rule QTR_PROFIT_GROWTH_YOY
Watch
Q1 FY27 net profit declined 31.8% while revenue grew 10.5% vs the same quarter last year — a gap of 42.2 percentage points.
Rule QTR_PROFIT_VS_REVENUE_GROWTH
Strength
Q1 FY27 revenue was ₹6,583 cr, up 10.5% from ₹5,960 cr in Q1 FY26 a year earlier.
Rule QTR_REVENUE_GROWTH_YOY
A. Quarterly results
RevenueNet profit
| Quarter | Revenue | YoY | Net profit | YoY | Net margin |
|---|---|---|---|---|---|
| Q2 FY25 | 5,767 | — | 227 | — | 3.9% |
| Q3 FY25 | 5,798 | +2.9% | 236 | +424.0% | 4.1% |
| Q4 FY25 | 5,990 | +5.2% | 1,041 | +223.6% | 17.4% |
| Q1 FY26 | 5,960 | +5.8% | 190 | −42.9% | 3.2% |
| Q2 FY26 | 6,100 | +5.8% | 183 | −19.4% | 3.0% |
| Q3 FY26 | 6,189 | +6.7% | 364 | +54.3% | 5.9% |
| Q4 FY26 | 6,554 | +9.4% | 259 | −75.1% | 4.0% |
| Q1 FY27 | 6,583 | +10.5% | 130 | −31.8% | 2.0% |
B. TTM snapshot
Trailing twelve months to 30 Jun 2026 · sum of the last 4 contiguous quarters
- Revenue
- ₹25,426 crTTM
- EBITDA
- ₹5,213 crTTM
- EBIT
- ₹2,313 crTTM
- PBT
- ₹1,358 crTTM
- Net profit
- ₹936 crTTM
C. Corporate actions
19 Jun 2026DividendFinal Dividend - Rs. - 17.5000 — ₹17.50/share
19 Jun 2025DividendFinal Dividend - Rs. - 25.0000 — ₹25.00/share
1 Jul 2024DividendFinal Dividend - Rs. - 16.7000 — ₹16.70/share
26 Jun 2023DividendFinal Dividend - Rs. - 21.0000 — ₹21.00/share
10 Jun 2022DividendFinal Dividend - Rs. - 20.7000 — ₹20.70/share
17 Jun 2021DividendFinal Dividend - Rs. - 14.0000 — ₹14.00/share
20 Aug 2020DividendFinal Dividend - Rs. - 4.0000 — ₹4.00/share
17 Sept 2019DemergerSpin Off
25 Jul 2019DividendFinal Dividend - Rs. - 4.5000 — ₹4.50/share
1 Aug 2018DividendFinal Dividend - Rs. - 4.5000 — ₹4.50/share
16 Jun 2017DividendSpecial Dividend - Rs. - 1.5000 — ₹1.50/share
16 Jun 2017DividendDividend - Rs. - 4.5000 — ₹4.50/share
21 Jul 2016DividendDividend - Rs. - 4.3000 — ₹4.30/share
23 Sept 2015DividendDividend - Rs. - 5.5000 — ₹5.50/share
30 Jul 2014DividendDividend - Rs. - 4.5000 — ₹4.50/share
17 Jul 2013DividendDividend - Rs. - 3.0000 — ₹3.00/share
16 Jul 2012DividendDividend - Rs. - 2.0000 — ₹2.00/share
28 Sept 2011DividendDividend - Rs. - 2.0000 — ₹2.00/share
22 Jul 2009DividendDividend - Rs. - 4.5000 — ₹4.50/share
24 Jul 2008DividendDividend - Rs. - 4.5000 — ₹4.50/share
13 Jul 2007DividendDividend - Rs. - 4.5000 — ₹4.50/share
16 Jan 2002DividendInterim Dividend - Rs. - 75.0000 — ₹75.00/share
3 Sept 2001DividendDividend - Rs. - 50.0000 — ₹50.00/share
Section 06 · Business performance
Is it becoming more profitable?
EBITDA marginNet margin
Concern
ROE declined from 76.3% to 29.9% year on year.
Rule ROE_DETERIORATED_YOY
- EBITDA margin now
- 32.1%
- 8-year range
- 24.5–38.2%
- ROE FY2026
- 7.5%
- ROCE FY2026
- 9.1%
ROE of 29.9% is well above the telecom cellular and fixed line services median of 19.4%.
EBITDA margin of 20.7% is below the telecom cellular and fixed line services median of 43.6%.
EBITDA margin has ranged from 17.0% to 27.3% over 7 years and sits at 20.7% now.
Section 07 · Financial health
Is financial health improving?
Net worth (shareholders' funds)
Strength
Operating cash flow has matched or exceeded reported profit in 6 of the last 6 profit-making years (latest 4.49×).
Rule CFO_CONSISTENTLY_EXCEEDS_PAT
Operating cash flowNet profit
- Total debt
- ₹4,751 cr
- Operating cash flow ÷ net profit
- 1.89×FY2026
- Free cash flow
- ₹627 cr
- Current ratio
- 0.57×
Debt-to-equity fell from 3.60× to 2.90× year on year.
Free cash flow has been positive in 6 of the last 6 years.
Section 08 · Relative position
How does it compare with peers?
Ranked against 3 telecom - cellular & fixed line services (FY2026, consolidated).
Revenue growth
TATACOMM · 2nd of 3 · set median 7.3%
EBITDA margin
TATACOMM · 3rd of 3 · set median 43.6%
Return on equity
TATACOMM · 1st of 3 · set median 19.4%
P/E ratio
TATACOMM · 3rd of 3 · set median 29.1×
Watch
The P/E of 51.30× is above the telecom cellular and fixed line services median (29.14×) while profit declined 45.7% last year.
Rule PRICED_FOR_GROWTH
- P / E
- 51.3×TTM to Jun 26
- P / B
- 13.2×latest book
- P / S
- 1.9×TTM sales
- Earnings yield
- 1.9%TTM to Jun 26
On the trailing twelve months. Last full year: P/E 48.2× · P/S 1.9× · ROE 29.9%.
Section 09 · The stock
How has the stock performed?
Long-term price performance is shown above.
- 1-year return
- +4.5%
- 3-year return
- −12.8%
- 5-year return
- +19.5%
- From 52-wk high
- −18.2%
Section 10 · Technical data
What does the technical data say?
Price-action indicators as of 2026-10-01. Secondary to the fundamentals above — included for timing context, not as a signal.
- vs 50-day avg
- Below₹1,727
- vs 200-day avg
- Below₹1,706
- RSI (14)
- 44.4neutral
- MACD histogram
- -7.6
- From 52-wk high
- −18.2%
- From 52-wk low
- +25.0%
- 30-day volatility
- 24.5%ann.
- 6-month return
- +25.0%
Section 11 · Open questions
What should I investigate further?
Observations the engine tagged watch or deteriorating — prompts for your own research, not conclusions.
- WatchProfit lagging revenueRevenue grew 7.3% but profit declined 45.7%, so the company kept less of each rupee of revenue as profit.PROFIT_SLOWER_THAN_REVENUE · conviction 74
- WatchPremium valuation, soft growthThe P/E of 51.30× is above the telecom cellular and fixed line services median (29.14×) while profit declined 45.7% last year.PRICED_FOR_GROWTH · conviction 62
- ConcernReturns decliningROE declined from 76.3% to 29.9% year on year.ROE_DETERIORATED_YOY · conviction 54
- ConcernProfit fellNet profit fell 45.7% year on year (FY2025 → FY2026).PROFIT_DECLINED_YOY · conviction 52
- ConcernThinner margins than peersEBITDA margin of 20.7% is below the telecom cellular and fixed line services median of 43.6%.MARGIN_BELOW_PEER_MEDIAN · conviction 50
- Cash-flow-statement facts are unavailable for FY2019, FY2020 — those filings predate SEBI's Cash Flow Statement disclosure requirement. All other loaded years carry full P&L, balance sheet and cash-flow data.
Section 12 · Reference
The numbers
The full statements, kept deliberately secondary. Every figure traces to a BSE Integrated Filing (inline XBRL); ratios are recomputed from the normalised facts.
| Metric | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5,389 | 5,750 | 6,225 | 6,587 | 7,236 | 7,992 | 7,278 | 7,376 |
| Total income | 5,481 | 5,931 | 6,500 | 7,146 | 7,733 | 8,416 | 7,546 | 7,993 |
| EBITDA | 1,318 | 1,752 | 2,258 | 2,514 | 2,343 | 2,328 | 1,865 | 2,366 |
| Profit before tax | −276 | 374 | 1,229 | 1,520 | 981 | 940 | 1,202 | 1,014 |
| Net profit | −442 | 209 | 963 | 1,167 | 666 | 639 | 1,051 | 794 |
| EPS (₹) | −15.5 | 7.3 | 33.8 | 41.0 | 23.4 | 22.4 | 36.9 | 27.9 |
| Net worth | 8,199 | 8,221 | 9,067 | 9,803 | 9,861 | 9,890 | 10,451 | 10,579 |
| Total debt | 301 | 543 | 578 | 538 | 537 | 2,713 | 3,209 | 4,751 |
| Operating cash flow | — | — | 1,647 | 2,173 | 2,087 | 2,106 | 1,597 | 1,504 |
| Free cash flow | — | — | 777 | 955 | 1,116 | 714 | 1,198 | 627 |
| Ratio | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|---|---|
| Growth | ||||||||
| Revenue growth YoY | — | 6.7 | 8.3 | 5.8 | 9.9 | 10.4 | -8.9 | 1.3 |
| Profit growth YoY | — | — | 361.1 | 21.3 | -42.9 | -4.1 | 64.6 | -24.5 |
| Profitability | ||||||||
| EBITDA margin % | 24.5 | 30.5 | 36.3 | 38.2 | 32.4 | 29.1 | 25.6 | 32.1 |
| Net margin % | -8.1 | 3.5 | 14.8 | 16.3 | 8.6 | 7.6 | 13.9 | 9.9 |
| Return on equity % | -5.4 | 2.5 | 11.1 | 12.4 | 6.8 | 6.5 | 10.3 | 7.5 |
| Return on capital % | 5.0 | 9.0 | 14.0 | 16.0 | 13.0 | 11.2 | 6.7 | 9.1 |
| Leverage & cash | ||||||||
| Debt to equity | 0.04 | 0.07 | 0.06 | 0.05 | 0.05 | 0.27 | 0.31 | 0.45 |
| Cash flow ÷ profit | — | — | 1.71 | 1.86 | 3.13 | 3.30 | 1.52 | 1.89 |
| Current ratio | 0.64 | 0.62 | 0.84 | 0.99 | 0.64 | 0.43 | 0.54 | 0.57 |