Tata CommunicationsNSE:TATACOMM -1.62%83 Operating Margin % is 8.44% as of Mar. 2026, which is 3% below its 10-year median of 8.70. GuruFocus rates NSE:TATACOMM with a GF Score™ of 83/100 and a GF Value™ of ₹2,043.39 (Fairly Valued). The stock has 8 warning signs investors should review. Among 363 Telecommunication Services companies, Tata Communications ranks worse than 56.47% on this metric.
Tata Communications Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.7%.
The historical rank and industry rank for Tata Communications's Operating Margin % or its related term are showing as below:
NSE:TATACOMM'
s Operating Margin % Range Over the Past 10 Years
Min: 3.17 Med: 8.7 Max: 12.23
Current: 8.05
NSE:TATACOMM's Operating Margin % is ranked worse than 56.47% of 363
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs NSE:TATACOMM: 8.05
Tata Communications's 5-Year Average Operating Margin % Growth Rate was -7.70% per year.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tata Communications Operating Margin % Related Terms
Tata Communications Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tata Communications's Operating Margin % 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.
NSE:TATACOMM vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Tata Communications's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tata Communications's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Tata Communications's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* 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 Operating Margin % of 8.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tata Communications and its competitors. This is near median its historical median of 8.70. Over the past decade, Tata Communications' Operating Margin % has ranged from 3.17 to 12.23. According to the industry distribution chart, Tata Communications ranks #205 out of 363 companies in the Telecommunication Services industry, placing it in the top 56.5%.
Is Tata Communications' Operating Margin % too high?
Tata Communications' current Operating Margin % of 8.44% is near median its 10-year median of 8.70. Over the past 10 years, this metric has ranged from a low of 3.17 to a high of 12.23. The Telecommunication Services industry median Operating Margin % is 9.73. Tata Communications' value of 8.44% is 13.3% below this industry median. Based on the distribution chart, Tata Communications ranks #205 out of 363 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Tata Communications has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #205 out of 363 companies for Operating Margin %. This places Tata Communications in the lower half of its industry. The industry median Operating Margin % is 9.73. Tata Communications' value of 8.44% is 13.3% below this benchmark. Historically, Tata Communications' own Operating Margin % has ranged from 3.17 to 12.23 over the past decade. While the company's 10-year median is 8.70 vs. the industry median of 9.73, 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 Operating Margin % for a Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current Operating Margin % of 8.44% is 13.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current Operating Margin % is 8.44%, which is near median its own 10-year median of 8.70. 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 ₹2,043.39, compared to a current price of ₹1,906.70 — trading 6.7% below its estimated fair value. The current Operating Margin % is 8.44%, which is near median its 10-year median of 8.70 and 13.3% below the Telecommunication Services industry median of 9.73. Tata Communications' overall GF Score™ is 83/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Operating Margin % is 8.44% 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 ₹1,906.70 is trading 6.7% below its estimated GF Value™ of ₹2,043.39.
GuruFocus considers Tata Communications to be Fairly Valued.
Key valuation signals for NSE:TATACOMM:
Operating Margin %: 8.44% (near median its 10-year median of 8.70)
GF Value™: ₹2,043.39 vs. price of ₹1,906.70 (6.7% below fair value)
Industry Position: 13.3% below the Telecommunication Services median (#205 of 363)
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.
83GF Score
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