Tata CommunicationsNSE:TATACOMM -0.76%80 Interest Coverage is 3.04 as of Mar. 2026, which is 9% above its 10-year median of 2.79. GuruFocus rates NSE:TATACOMM with a GF Score™ of 80/100 and a GF Value™ of ₹2,045.13 (Fairly Valued). The stock has 8 warning signs investors should review. Among 284 Telecommunication Services companies, Tata Communications ranks worse than 69.37% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Tata Communications's
Operating Income
for the
three
months ended in Mar. 2026 was ₹5,529 Mil. Tata Communications's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1,817 Mil.
Tata Communications's interest coverage for the quarter that ended in Mar. 2026 was 3.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tata Communications's Interest Coverage or its related term are showing as below:
NSE:TATACOMM'
s Interest Coverage Range Over the Past 10 Years
Min: 1.15 Med: 2.79 Max: 5.68
Current: 2.62
NSE:TATACOMM's Interest Coverage is ranked worse than 69.37% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs NSE:TATACOMM: 2.62
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Tata Communications Interest Coverage Related Terms
Tata Communications Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tata Communications's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NSE:TATACOMM vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Tata Communications's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tata Communications's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (NSE:TATACOMM) has a Interest Coverage of 3.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Communications and its competitors. This is near median its historical median of 2.79. Over the past decade, Tata Communications' Interest Coverage has ranged from 1.15 to 5.68. According to the industry distribution chart, Tata Communications ranks #197 out of 284 companies in the Telecommunication Services industry, placing it in the top 69.4%.
Is Tata Communications' Interest Coverage too high?
Tata Communications' current Interest Coverage of 3.04 is near median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 1.15 to a high of 5.68. The Telecommunication Services industry median Interest Coverage is 4.69. Tata Communications' value of 3.04 is 35.1% below this industry median. Based on the distribution chart, Tata Communications ranks #197 out of 284 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Tata Communications has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #197 out of 284 companies for Interest Coverage. This places Tata Communications in the lower half of its industry. The industry median Interest Coverage is 4.69. Tata Communications' value of 3.04 is 35.1% below this benchmark. Historically, Tata Communications' own Interest Coverage has ranged from 1.15 to 5.68 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 4.69, Tata Communications has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current Interest Coverage of 3.04 is 35.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current Interest Coverage is 3.04, which is near median its own 10-year median of 2.79. 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 Fairly Valued. The stock's GF Value™ is ₹2,045.13, compared to a current price of ₹1,856.20 — trading 9.2% below its estimated fair value. The current Interest Coverage is 3.04, which is near median its 10-year median of 2.79 and 35.1% below the Telecommunication Services industry median of 4.69. Tata Communications' overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Interest Coverage is 3.04 as of Mar. 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 ₹1,856.20 is trading 9.2% below its estimated GF Value™ of ₹2,045.13.
GuruFocus considers Tata Communications to be Fairly Valued.
Key valuation signals for NSE:TATACOMM:
Interest Coverage: 3.04 (near median its 10-year median of 2.79)
GF Value™: ₹2,045.13 vs. price of ₹1,856.20 (9.2% below fair value)
Industry Position: 35.1% below the Telecommunication Services median (#197 of 284)
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 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.
80GF Score
Get the complete analysis for NSE:TATACOMM
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:TATACOMM has been successfully added to your 
