Tata Communications (NSE:TATACOMM) Dividend Payout Ratio: 2.52 (As of Jun. 2026) — 641% Above Median

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NSE:TATACOMM Tata Communications Ltd NSE:TATACOMM
81 GF Score
Price ₹1,800.70
GF Value ₹2,051.82
Valuation Modestly Undervalued
! 7 Warning Signs
View Full Analysis

What is Tata Communications Dividend Payout Ratio?

Tata Communications NSE:TATACOMM +2.23% 81 Dividend Payout Ratio is 2.52 as of Jun. 2026, which is 641% above its 10-year median of 0.34. GuruFocus rates NSE:TATACOMM with a GF Score™ of 81/100 and a GF Value™ of ₹2,051.82 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 191 Telecommunication Services companies, Tata Communications ranks better than 57.59% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Tata Communications's Dividend Payout Ratio for the months ended in Jun. 2026 was 2.52.

The historical rank and industry rank for Tata Communications's Dividend Payout Ratio or its related term are showing as below:

NSE:TATACOMM' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.09   Med: 0.34   Max: 0.63
Current: 0.47

During the past 13 years, the highest Dividend Payout Ratio of Tata Communications was 0.63. The lowest was 0.09. And the median was 0.34.

NSE:TATACOMM's Dividend Payout Ratio is ranked better than
57.59% of 191 companies
in the Telecommunication Services industry
Industry Median: 0.54 vs NSE:TATACOMM: 0.47

As of today (2026-07-24), the Dividend Yield % of Tata Communications is 0.99%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Tata Communications was 2.48%. The lowest was 0.31%. And the median was 1.20%.

Tata Communications's Dividends per Share for the months ended in Jun. 2026 was ₹17.50.

During the past 12 months, Tata Communications's average Dividends Per Share Growth Rate was -30.00% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 6.50% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 32.00% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 21.90% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Tata Communications was 215.00% per year. The lowest was -67.00% per year. And the median was 0.00% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Tata Communications (NSE:TATACOMM) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Tata Communications Dividend Payout Ratio Related Terms

Tata Communications Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Tata Communications's Dividend Payout Ratio 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 Dividend Payout Ratio Chart

Tata Communications Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.27 0.34 0.45 0.41 0.63

Tata Communications Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Dividend Payout Ratio 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 2.88 0.00 0.00 0.00 2.52

NSE:TATACOMM vs TMUS, VZ, T: Dividend Payout Ratio Comparison

For the Telecom Services subindustry, Tata Communications's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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 Dividend Payout Ratio vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Tata Communications's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Tata Communications's Dividend Payout Ratio falls into.


NSE:TATACOMM
81GF Score
Tata Communications Ltd NSE:TATACOMM
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tata Communications Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Tata Communications's Dividend Payout Ratio for the fiscal year that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Mar. 2026 )/ EPS without NRI (A: Mar. 2026 )
=25/ 39.766
=0.63

Tata Communications's Dividend Payout Ratio for the quarter that ended in Jun. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Jun. 2026 )/ EPS without NRI (Q: Jun. 2026 )
=17.5/ 6.934
=2.52

* 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.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 2.52 mean?
Tata Communications (NSE:TATACOMM) has a Dividend Payout Ratio of 2.52 as of Jun. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Tata Communications and its competitors. This is 641% above median its historical median of 0.34. Over the past decade, Tata Communications' Dividend Payout Ratio has ranged from 0.09 to 0.63. According to the industry distribution chart, Tata Communications ranks #81 out of 191 companies in the Telecommunication Services industry, placing it in the top 42.4%.
Is Tata Communications' Dividend Payout Ratio too high?
Tata Communications' current Dividend Payout Ratio of 2.52 is 641% above median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 0.63. The Telecommunication Services industry median Dividend Payout Ratio is 0.54. Tata Communications' value of 2.52 is 366.7% above this industry median. Based on the distribution chart, Tata Communications ranks #81 out of 191 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Tata Communications has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' Dividend Payout Ratio compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #81 out of 191 companies for Dividend Payout Ratio. This puts Tata Communications in the upper half of its industry. The industry median Dividend Payout Ratio is 0.54. Tata Communications' value of 2.52 is 366.7% above this benchmark. Historically, Tata Communications' own Dividend Payout Ratio has ranged from 0.09 to 0.63 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 0.54, Tata Communications has consistently been above 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 Dividend Payout Ratio for a Telecommunication Services company?
The median Dividend Payout Ratio among Telecommunication Services companies is 0.54, based on 191 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current Dividend Payout Ratio of 2.52 is 366.7% above 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median Dividend Payout Ratio is 0.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current Dividend Payout Ratio is 2.52, which is 641% above median its own 10-year median of 0.34. 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 ₹2,051.82, compared to a current price of ₹1,800.70 — trading 12.2% below its estimated fair value. The current Dividend Payout Ratio is 2.52, which is 641% above median its 10-year median of 0.34 and 366.7% above the Telecommunication Services industry median of 0.54. Tata Communications' overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Dividend Payout Ratio is 2.52 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 ₹1,800.70 is trading 12.2% below its estimated GF Value™ of ₹2,051.82. GuruFocus considers Tata Communications to be Modestly Undervalued.

Key valuation signals for NSE:TATACOMM:

  • Dividend Payout Ratio: 2.52 (641% above median its 10-year median of 0.34)
  • GF Value™: ₹2,051.82 vs. price of ₹1,800.70 (12.2% below fair value)
  • GF Score™: 81/100 with 7 warning signs
  • Industry Position: 366.7% above the Telecommunication Services median (#81 of 191)

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.
81GF Score

Get the complete analysis for NSE:TATACOMM

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,800.70
Price
₹2,051.82
GF Value