Tata Communications Ltd: Why Is It Outperforming Nifty 500?

Tata Communications Ltd's latest quarterly results (Mar 2026) show

• PAT Growth YoY: -75.1% (stable)
• Revenue Growth YoY: +9.4%
• Operating Margin: 20.0% (stable)

Tata Communications Ltd's profit is declining with an stable trend.

• PAT Growth YoY: -75.1% (latest quarter)
• PAT Growth QoQ: -28.8% (sequential)
• 3-Year PAT CAGR: -17.9%
• Trend: Stable — consistent growth pattern

Tata Communications Ltd's revenue growth trend is stable.

• Revenue Growth YoY: +9.4%
• Revenue Growth QoQ: +5.9% (sequential)
• 3-Year Revenue CAGR: +11.6%

Tata Communications Ltd's operating margin is stable.

• Current OPM: 20.0%
• OPM Change YoY: +1.0% basis points
• OPM Change QoQ: 0.0% basis points

Tata Communications Ltd's long-term compounding rates

• 3-Year Profit CAGR: -17.9%
• 3-Year Revenue CAGR: +11.6%

Tata Communications Ltd's earnings growth is stable with mixed signals on a sequential basis.

• YoY Acceleration: -129.3% bps
• Sequential Acceleration: -78.8% bps

Tata Communications Ltd's trailing twelve month (TTM) performance

• TTM PAT: ₹996 Cr
• TTM PAT Growth: -45.8% YoY
• TTM Revenue: ₹25,000 Cr
• TTM Revenue Growth: +7.3% YoY
• TTM Operating Margin: 19.5%

Tata Communications Ltd appears significantly overvalued based on our fair value analysis.

• Valuation Signal: Significantly Overvalued
• Current PE: 53.8x
• Price-to-Book: 16.5x

Tata Communications Ltd's current PE ratio is 53.8x.

• Current PE: 53.8x
• Market Cap: 56.8K Cr
• Dividend Yield: 0.88%

Tata Communications Ltd's current PE is 53.8x.

• Current PE: 53.8x
• Valuation Assessment: Significantly Overvalued

Tata Communications Ltd's price-to-book ratio is 16.5x.

• Price-to-Book (P/B): 16.5x
• Book Value per Share: ₹121
• Current Price: ₹1992

Tata Communications Ltd is rated Weak with a fundamental score of 38.91/100. This score is calculated from objective financial metrics

• Revenue Growth YoY: +9.4% (10% weight)
• PAT Growth YoY: -75.1% (10% weight)
• PAT Growth QoQ: -28.8% (10% weight)
• Margins stable (10% weight)

Tata Communications Ltd has a debt-to-equity ratio of N/A.

• Total Debt: ₹12,000 Cr

Tata Communications Ltd's return ratios over recent years

• FY2024: ROCE 18.0%
• FY2025: ROCE 15.0%
• FY2026: ROCE 15.0%

Tata Communications Ltd's operating cash flow is positive (FY2026).

• Cash from Operations (CFO): ₹4,000 Cr
• Free Cash Flow (FCF): ₹3,000 Cr
• CFO/PAT Ratio: 449% (strong cash conversion)

Tata Communications Ltd's current dividend yield is 0.88%.

• Dividend Yield: 0.88%
• Current Price: ₹1992

Tata Communications Ltd's shareholding pattern (Mar 2026)

• Promoters: 58.9%
• FII (Foreign): 14.4%
• DII (Domestic): 19.1%
• Public: 7.6%

Tata Communications Ltd's promoter holding has remained stable recently.

• Current Promoter Holding: 58.9% (Mar 2026)
• Previous Quarter: 58.9% (Dec 2025)
• Change: 0.00% (stable)

Tata Communications Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.

Tata Communications Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.

Based on quantitative research signals, here is why Tata Communications Ltd may be worth studying

• Cash flow is positive — CFO ₹4,000 Cr

Tata Communications Ltd investment thesis summary:

Tata Communications Ltd's forward outlook based on current data signals

• Earnings Trend: stable
• Revenue Trend: stable
• Margin Trend: stable
• Valuation: Significantly Overvalued