telecom
Tata Communications
TATACOMM · Nifty 50
₹1,899.8
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Tata Communications scores 85/100 on fundamentals (strong). Tata Communications: BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 53.9% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 53.94% is strong leverage-driven and stable. Net margin of 7.5% × asset turnover of 0.87x × leverage of 8.2x. High leverage amplifies returns but increases risk.
What This Means
Net margin of 7.5% means the company keeps ₹7.5 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.87x means the company efficiently uses its assets to generate revenue. Leverage of 8.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
54.0%
Operating
11.5%
Net
7.5%
Gross margin 54.0% → operating margin 11.5% → net margin 7.5%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
STRONGCash flow covers net income 2.4x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.
Debt Sustainability
ADEQUATEInterest covered 3.8x — adequate buffer. Debt is manageable. Debt/EBITDA at 2.2x is moderate.
Free Cash Flow
STRONGFCF margin at 8.3% — moderate. Generating cash after investments.
Peer Comparison
Tata Communications is compared against 4 peers in the telecom sector.
Key Watchpoints
Breaks above ₹1995 (+5%)
Trend reversal confirmation
Breaks below ₹1805 (-5%)
Further downside risk
Telecom sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 0 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes