Tata Communications Limited (TATACOMM.NS) stock analysis
In our weekly check, Tata Communications Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 5, red flags: 8.
About Tata Communications Limited
Tata Communications Limited is a Communication Services company (Telecommunications Services) based in India, listed on NSE as TATACOMM.NS.
What our checks show for TATACOMM.NS
Red flags
- Net debt is 2.4x a year of EBITDA (debt/equity 3.93). That limits room in a downturn and raises refinancing risk.
- The net margin fell by 4.6 points over 5 years, to 4.2%: the company keeps less of each sale as profit.
- The gross margin fell by 4.3 points, to 30.4%: costs are rising faster than prices.
- Profits not backed by cash
- The net margin is only 4.2%: little room if costs rise.
- The stock has fallen as much as 81% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 3.3 years.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Operating profit covers interest only 2.9 times: a weak year could make the payments hard.
- Earnings per share fell 15% a year over the last 3 years.
- Net profit fell 15% a year over the last 3 years.
- Free cash flow is only 0% of revenue.
- Thinly traded (about 342 thousand shares a day): buying and selling can move the price.
Strengths
- Analysts expect earnings per share to grow about 45% a year over the next years.
- Analysts expect the net margin to improve by 4.2 points from today's 4.2%.
Next earnings report: 2027-01-20
Similar companies
TRUE-R.BK · 4904.TW · 3045.TW · MTN.JO · VOD.JO · INDUSTOWER.NS
Questions
What grade does Tata Communications Limited (TATACOMM.NS) have?
In our weekly check, Tata Communications Limited is graded D (A to F). Of 24 checks on debt, profit, cash flow and trend: 11 pass, warnings: 5, red flags: 8. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of TATACOMM.NS stock?
This week's biggest flags for Tata Communications Limited: High debt, Margins falling, Gross margin falling. In total 13 of 24 checks show a warning or a red flag.
What does Tata Communications Limited do?
Tata Communications Limited is a Communication Services company (Telecommunications Services) based in India, listed on NSE as TATACOMM.NS.
When does Tata Communications Limited report earnings next?
The next earnings report is expected on 2027-01-20. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-31
Open the full analysis