Financial & Valuation Intelligence™
Tata Communications Limited
NSE
TATACOMM
Sector: Telecommunication· Telecom - Cellular & Fixed line servicesCurrent Price
₹1,616.8
Market Cap
₹50.28K Cr
AI Financial Summary
Tata Communications Limited demonstrates a complex financial profile marked by high operational profitability and strong capital allocation scores, though it is currently hampered by a significant debt load and volatile bottom-line growth. While the firm exhibits solid operational cash generation, its current valuation appears stretched relative to intrinsic value estimates.
Business Performance (CAGR)
10 Years
Revenue
3.9%
PAT
-3.4%
EPS
-3.4%
Book Value
11.7%
Free Cash Flow
15.0%
Valuation Snapshot
P/E38.4
P/B11.1
EV/EBITDA12.8
P/S2
Div Yield0.99%
Financial Health
Debt to Equity3.55
Interest Coverage2.8x
Current Ratio0.39
Cash & Investments₹2.99K Cr
Profitability Metrics
ROE
29.1%
ROCE
13.7%
ROA
3.5%
EBITDA Mgn
19.4%
Op Margin
8.7%
Net Margin
4.0%
Cash Flow Intelligence
Operating Cash Flow₹4.48K Cr
Free Cash Flow₹340 Cr
Cash Conversion447.2%
FCF Margin1.4%
Intrinsic Value
PremiumEstimated Intrinsic Value
████████
Current Price₹1,616.8
Margin of Safety██.██%
Estimated Intrinsic Value & DCF Fair Value are available with Premium plans.
AI Business Verdict
The company displays strong operational quality but is currently constrained by an elevated valuation and financial leverage, suggesting a cautious outlook.
- High return on equity relative to industry peers
- Robust operating cash flow generation
- Disciplined capital allocation strategy
Balance Sheet
AI-Powered Analysis
Balance Sheet Strength™
55/100
Adequate
Tata Communications Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
AI Confidence
92%
Stability
52
Flexibility
52
Strength Factors
Liquidity42
Leverage40
Working Capital68
Asset Quality57
Shareholder Strength77
Financial Stability52
Financial Flexibility™
52/100
Adequate
Capacity to fund growth, withstand downturns and return capital.
Total Assets
₹28.29K Cr
▲ 0.7% YoY
Total Liabilities
₹24.84K Cr
▼ 0.9% YoY
Shareholder Equity
₹3.45K Cr
▲ 14.1% YoY
Net Cash Position
₹-9.26K Cr
Monitor
Debt / Equity
3.55x
Elevated
Enterprise Value
₹59.54K Cr
Capital Structure
Assets
₹28.29K Cr
Equity
₹3.45K Cr (12.2%)
Liabilities
₹24.84K Cr (87.8%)
Debt Intelligence™
Debt vs Cash Trend
Debt / Equity3.55x
Interest Coverage2.8x
Debt / EBITDA12.23x
Net Debt₹9.26K Cr
Debt Trend (5Y)5.9%
Debt MaturityWell Staggered
Liquidity Intelligence™
Current Ratio0.39
Quick Ratio0.39
Cash Ratio0.03
Working Capital₹-7.62K Cr
Operating Cash CoverageAdequate
Short-term LiquidityWeak
Working Capital Intelligence™
CCC Trend
Receivable Days61
Inventory Days1
Payable DaysNot Available
Cash Conversion Cycle63 days
Asset Quality (% of Total Assets)
Cash & Investments2.5%
Property, Plant & Equip.54.7%
ReceivablesNot Available
InventoryNot Available
GoodwillNot Available
Intangible AssetsNot Available
Other Assets42.3%
Shareholder Strength™
Strength Radar
Book Value CAGR (5Y)11.7%
Net Worth CAGR (5Y)11.7%
Retained EarningsStrong
Equity Dilution0.00%
Buyback EfficiencyStrong
Dividend Sustain.Strong
Balance Sheet Evolution
Annual
Balance Sheet Risk Monitor
Debt RiskHigh
Liquidity RiskHigh
Working Capital RiskModerate
Refinancing RiskElevated
Asset Quality RiskElevated
Dilution RiskLow
Contingent LiabilityLow
Overall Balance Sheet RiskElevated
Balance Sheet Stress Test™
Economic Slowdown55
Acquisition Capacity49
High Interest Rates62
Dividend Sustainability65
Revenue Decline47
Cash Flow Resilience52
Expansion Capacity62
Overall Resilience Score
56/100
Adequate Resilience
AI Balance Sheet Commentary
Overall Assessment
- Tata Communications Limited has an adequate but tight balance sheet — leverage and liquidity warrant monitoring.
What Stands Out
- Strong shareholder equity growth
Areas To Monitor
- Elevated debt-to-equity ratio
- Thin interest coverage — cyclical earnings risk
- Tight short-term liquidity cushion
- Large 'other assets' bucket — investigate composition
Financial data based on consolidated numbers and TTM · Source: Company Filings, Annual Report AI Analysis · Data as of: 31/03/2026