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Tata Communications Limited (TATACOMM) Fair Value & Analysis

Communication Services · IN · Market cap ₹524B

TC Tata Communications Limited TATACOMM · NSE
Price₹1,755
Fair Value₹1,287
Upside-26.7%
Quality41/100
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Healthy Growth
Thin margins · 4.0% net margin
High debt · generates free cash flow
0.94% dividend yield
Trails peers (4/14)
Moderate moat 56/100
Evidence: High Range ₹804.26 – ₹1,791 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 23 days ago

Fair value updated Jul 18, 2026, revised from ₹715.02 to ₹1,287 (+80.0%) since Jun 24, 2026. Share price −6.7% over the past month.

Below-average quality, and screening another 27% overvalued on our models.

What matters now

  • Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
  • A fairly wide model range (₹804.26 to ₹1,791) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹2,106 ₹831.81 Fair Value ₹1,287 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ₹831.81 – ₹2,106 · fair‑value band ₹804.26 – ₹1,791 · the ₹1,755 price screens above the ₹1,287 fair value. Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

Tata Communications Limited (TATACOMM) currently trades at ₹1,755, while our model-based Fair Value estimate is ₹1,287, implying the stock looks roughly 26.7% overvalued today. The Quality Score stands at 41/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Tata Communications Limited generated revenue of ₹248B at a net margin of 4.0%. Revenue grew 9.4% year over year. It earns a return on equity of 31.1%. Net debt stands at ₹116B. Fundamentals as of Jul 18, 2026

Our scenario range runs from ₹804.26 (bear case) to ₹1,791 (bull case); at ₹1,755, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 14% below its 52-week high and 33% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at -27%, TATACOMM screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ₹477.26 ₹823.99 ₹1,346 80
Residual Income ₹229.64 ₹280.45 ₹1,098 76
Rev-Margin DCF ₹432.05 ₹810.22 ₹1,244 74
All 26 models by family
DCF Models
FCF DCF ₹463.24 ₹851.43 ₹1,472 38
Owner Earnings ₹410.96 ₹768.17 ₹1,340 31
5Y Revenue Exit ₹432.05 ₹809.94 ₹1,291 39
5Y EBITDA Exit ₹930.03 ₹1,741 ₹2,692 41
5Y P/E Exit ₹385.54 ₹723.00 ₹1,074 38
10Y Revenue Exit ₹416.89 ₹769.99 ₹1,242 36
10Y EBITDA Exit ₹761.79 ₹1,431 ₹2,335 37
10Y P/E Exit ₹406.87 ₹708.26 ₹1,073 35
Earnings-Based
Graham-Dodd ₹249.02 ₹770.57 ₹1,024 54
Lynch FV ₹166.88 ₹238.40 ₹309.92 50
PEG = 1.0 ₹166.88 ₹238.40 ₹309.92 46
EPV ₹356.71 ₹453.55 ₹539.63 59
Dividend Discount
Gordon GGM ₹240.46 ₹524.97 ₹883.28 70
DDM Multi-Stage ₹240.46 ₹404.37 ₹547.10 61
Multiples
P/E Multiple ₹604.25 ₹805.66 ₹1,007 63
P/S Multiple ₹466.92 ₹622.56 ₹778.20 58
P/B Multiple ₹317.47 ₹423.30 ₹529.12 55
EV/EBIT ₹648.18 ₹928.27 ₹1,208 53
EV/EBITDA ₹1,331 ₹1,838 ₹2,346 54
EV/Revenue ₹445.12 ₹718.21 ₹991.29 43
Asset-Based
NCAV (Graham) ₹60.47 ₹81.03 ₹120.94 50
Growth DCF
Growth DCF ₹477.26 ₹823.99 ₹1,346 80
Rev-Margin DCF ₹432.05 ₹810.22 ₹1,244 74
Economic Profit
Residual Income ₹229.64 ₹280.45 ₹1,098 76
ROIC Compounder ₹397.56 ₹567.27 ₹772.83 72
Growth Earnings
Growth-Adj P/E ₹496.24 ₹708.91 ₹921.59 68

Widest divergence: Growth DCF (₹810.22) versus Asset-Based (₹81.03). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) ₹248B
Revenue growth (YoY) +9.4%
Net margin 4.0%
Return on equity 31.1%
Free cash flow ₹15.6B FY2026
P/E ratio 50.3
More key figures
Operating margin 8.4%
EPS (TTM) ₹36.56
Dividend yield 0.9%
EPS growth (YoY) -74.7%
Net debt ₹116B FY2026

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 41 · Market factors (momentum, volatility) 57

Profitability 53
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 16
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 71
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 53
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Tata Communications Limited provides telecom services worldwide. The company operates through Data Services, Voice Solutions, Payment Solutions, Transformation Services, Campaign Registry, and Real Estate segments.

Full company description

Tata Communications Limited provides telecom services worldwide. The company operates through Data Services, Voice Solutions, Payment Solutions, Transformation Services, Campaign Registry, and Real Estate segments. It provides voice and data transmission services; internet connectivity services; and other value-added services, such as unified conferencing and collaboration, managed hosting, mobile global roaming and signaling, transponder lease, and television up-linking, and other managed services, as well as sells and leases bandwidth on undersea cable systems. The company also offers end-to-end automated teller machines deployment, POS enablement, financial inclusion, card issuance and related managed services, and switching services to banking sector; cyber security; data center colocation services; network management and support services; system and platform integration services for Internet of Things (IoT) solutions; and provides IT consultation and support on services. In addition, it provides networking services, including managed LAN/WAN, private lines, business internet, hybrid WAN, and cloud connectivity; unified communications as a service; cloud solutions; Edge platform; cyber security services, such as cloud security, security assessment, consulting services, cyber threat detection and response, and networking security; managed SASE; IoT fabric solutions comprising connectivity, management, orchestration, and data analytics; carrier services, such as wholesale voice transport and termination, mobile messaging exchange, voice access services, strategic sourcing, and fraud prevention as a service; and content delivery network solutions. Further, the company engages in letting, leasing, licensing, or development of immovable properties. The company was formerly known as Videsh Sanchar Nigam Limited and changed its name to Tata Communications Limited in 2008. Tata Communications Limited was incorporated in 1986 and is based in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Tata Communications Limited reported revenue of ₹248B in FY2026 versus ₹167B in FY2022, a compound +10.4%/yr. Reported net income was ₹10.4B in FY2026, compounding −8.4%/yr from FY2022.

Growth Quality 75/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹248B
Latest YoY
+7.3%
Avg. growth/yr (3Y)
+11.6%
Avg. growth/yr (5Y)
+7.7%
Avg. growth/yr (28Y)
+5.1%
Revenue +10.4%/yr
FY22 ₹167B
FY23 ₹178B
FY24 ₹208B
FY25 ₹231B
FY26 ₹248B
Net income −8.4%/yr
FY22 ₹14.8B
FY23 ₹18.0B
FY24 ₹9.7B
FY25 ₹18.4B
FY26 ₹10.4B

TATACOMM screens 27% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "Tata Communications Limited Fair Value". https://www.fairvalue-calculator.com/stock/TATACOMM

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Telecom Services · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 41 · Bottom 25%
Fair Value upside −27% · Below median
Return on equity (TTM) 31% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 4% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth 9% · Above median
Dividend yield (TTM) 0.9% · Below median
Debt / equity 1.79× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 50.3× · Pricier than 75% of peers
P/B 15.21× · Pricier than 75% of peers
P/S (TTM) 2.11× · Pricier than median
P/FCF 0.4× · Cheaper than 75% of peers
EV/EBITDA 14.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 30
FUTURE 47 · sector 15
PAST 100 · sector 28
HEALTH 11 · sector 89
DIVIDEND 19 · sector 72

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is Tata Communications Limited (TATACOMM) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ₹1,287 versus a price of ₹1,755, about −27% (overvalued).
What is the fair value of TATACOMM?
Our model-based fair value for Tata Communications Limited is ₹1,287 (as of Jul 18, 2026), built from audited fundamentals. The current price is ₹1,755.
What is the quality score of TATACOMM?
Tata Communications Limited has a Quality Score of 41/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tata Communications Limited (TATACOMM)?
Tata Communications Limited reported trailing-twelve-month revenue of about ₹248B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of TATACOMM?
The net profit margin of Tata Communications Limited is about 4.0%, meaning it keeps roughly 4.0% of revenue as net income. Based on the latest reported figures.
Does Tata Communications Limited pay a dividend?
Tata Communications Limited currently shows a dividend yield of about 0.88% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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