Tata Communications (NSE:TATACOMM) Effective Interest Rate on Debt %: 6.07% (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NSE:TATACOMM Tata Communications Ltd NSE:TATACOMM
79 GF Score
Price ₹1,710.00
GF Value ₹2,031.33
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Tata Communications Effective Interest Rate on Debt %?

Tata Communications NSE:TATACOMM -1.37% 79 Effective Interest Rate on Debt % is 6.07% as of Jun. 2026. GuruFocus rates NSE:TATACOMM with a GF Score™ of 79/100 and a GF Value™ of ₹2,031.33 (Modestly Undervalued). The stock has 4 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Tata Communications's annualized positive value of Interest Expense for the quarter that ended in Jun. 2026 was ₹7,436 Mil. Tata Communications's average total debt for the quarter that ended in Jun. 2026 was ₹122,489 Mil. Therefore, Tata Communications's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 was 6.07%.


Tata Communications  (NSE:TATACOMM) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Tata Communications Effective Interest Rate on Debt % Related Terms


Tata Communications Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Tata Communications's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tata Communications Effective Interest Rate on Debt % Chart

Tata Communications Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.51 4.89 6.35 6.17 6.19

Tata Communications Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.71 6.06 6.04 5.93 6.07

NSE:TATACOMM vs VZ, TMUS, T: Effective Interest Rate on Debt % Comparison

For the Telecom Services subindustry, Tata Communications's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tata Communications Effective Interest Rate on Debt % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Tata Communications's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Tata Communications's Effective Interest Rate on Debt % falls into.


NSE:TATACOMM
79GF Score
Tata Communications Ltd NSE:TATACOMM
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tata Communications Effective Interest Rate on Debt % Calculation

Tata Communications's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -7616/( (123573.2+122489)/ 2 )
=-1  *  -7616/123031.1
=6.19 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=81593.1 + 41980.1
=123573.2

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=74393.1 + 48095.9
=122489

Tata Communications's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2026 )+Total Debt  (Q: Jun. 2026 ))/ count )
=-1  *  -7436/( (122489+0)/ 1 )
=-1  *  -7436/122489
=6.07 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=74393.1 + 48095.9
=122489

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 6.07% mean?
Tata Communications (NSE:TATACOMM) has a Effective Interest Rate on Debt % of 6.07% as of Jun. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tata Communications and its competitors.
Is Tata Communications' Effective Interest Rate on Debt % too high?
Tata Communications' current Effective Interest Rate on Debt % is 6.07%. Overall, Tata Communications has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' Effective Interest Rate on Debt % compare to VZ and TMUS?
Tata Communications' Effective Interest Rate on Debt % of 6.07% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Telecommunication Services company?
A good Effective Interest Rate on Debt % depends on the Telecommunication Services industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tata Communications and its competitors. Tata Communications's current Effective Interest Rate on Debt % is 6.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Communications stock overvalued right now?
Based on GuruFocus' analysis, Tata Communications (NSE:TATACOMM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,031.33, compared to a current price of ₹1,710.00 — trading 15.8% below its estimated fair value. The current Effective Interest Rate on Debt % is 6.07%. Tata Communications' overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Effective Interest Rate on Debt % is 6.07% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tata Communications (NSE:TATACOMM) Overvalued in 2026?

Based on GuruFocus' analysis, Tata Communications stock appears to be undervalued. The current stock price of ₹1,710.00 is trading 15.8% below its estimated GF Value™ of ₹2,031.33. GuruFocus considers Tata Communications to be Modestly Undervalued.

Key valuation signals for NSE:TATACOMM:

  • Effective Interest Rate on Debt %: 6.07%
  • GF Value™: ₹2,031.33 vs. price of ₹1,710.00 (15.8% below fair value)
  • GF Score™: 79/100 with 4 warning signs

No single metric tells the full story. See the NSE:TATACOMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tata Communications Business Description

Other Exchanges 500483:India
Address Plot No. C21 & C36, ‘G’ Block, 7th Floor, Bandra Kurla Complex, Mumbai, MH, IND, 400 098
Tata Communications Ltd offers international and national voice and data transmission services, selling and leasing of bandwidth on undersea cable systems, internet connectivity services, and other value-added services comprising unified conferencing and collaboration services, managed hosting, mobile roaming and signalling services, transponder lease, television uplinking and other managed services, data center colocation services, network management and support, and other related services. The Group also undertakes leasing, letting out, licensing or developing immovable properties to earn income, including rental, lease and license income from land and buildings. Its segments are Data Services, Voice Solutions, and Real Estate, with Data Services generating maximum revenue.
79GF Score

Get the complete analysis for NSE:TATACOMM

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,710.00
Price
₹2,031.33
GF Value