Tata Communications Limited (TATACOMM.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+7.7%

₹1,905.76

vs ₹1,769.60 price

Levered DCF

₹1,754.17

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.07

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	38.36×	27.72×	51.69×	19.76×	23.63×	24.22×	-77.2×	-131.17×
P/B	11.61×	14.9×	32.49×	23.38×	37.75×	262.34×	-5.2×	-59.43×
P/S	1.61×	1.95×	2.79×	1.99×	2.09×	1.77×	0.39×	0.65×
EV / EBITDA	10.2×	12.33×	15.62×	9.97×	10.28×	9.59×	5.49×	7.27×
Gross margin	22.9%	29.3%	30.8%	34.3%	34.8%	34.6%	32.0%	31.3%
Operating margin	8.0%	27.3%	29.1%	32.4%	25.3%	24.9%	19.3%	16.6%
Net margin	4.2%	7.9%	4.7%	10.1%	8.9%	7.3%	-0.5%	-0.5%
Current ratio	0.49×	0.58×	0.44×	0.59×	0.58×	0.75×	0.52×	0.56×
Debt / equity	3.55×	4.09×	6.3×	5.65×	9.83×	98.68×	-9.71×	-54.72×
Interest coverage	2.62×	8.66×	9.4×	13.35×	11.73×	9.3×	4.05×	6.92×
Dividend yield	1.8%	1.1%	1.0%	1.7%	1.1%	0.4%	2.3%	1.4%
Payout ratio	68.3%	25.9%	61.8%	32.8%	26.9%	9.1%	-175.4%	-186.2%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	30.3%	60.8%	54.2%	118.3%	159.7%	1083.2%	6.7%	45.3%
Return on invested capital	7.3%	26.6%	30.7%	36.6%	23.3%	22.2%	-13.1%	-8.4%
Return on assets	3.7%	6.9%	3.9%	8.7%	7.5%	5.9%	-0.4%	-0.4%
Free cash flow yield	3.9%	1.6%	1.9%	8.1%	7.3%	6.0%	12.7%	0.9%
Earnings yield	2.6%	4.1%	1.7%	5.1%	4.2%	4.1%	-1.3%	-0.8%
Enterprise value	₹515.9B	₹567.9B	₹685.7B	₹430.7B	₹434.4B	₹408.7B	₹182.1B	₹199.6B
Net debt / EBITDA	2.28×	2.56×	2.4×	1.75×	1.99×	2.48×	3.49×	3.34×
Cash conversion cycle (days)	-19	-13	-25	-41	-43	-49	-50	-51