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Tata CommunicationsNSE:TATACOMM -0.85%81 Pretax Margin % is 6.62% as of Mar. 2026, which is 9% above its 10-year median of 6.07. GuruFocus rates NSE:TATACOMM with a GF Score™ of 81/100 and a GF Value™ of ₹2,048.07 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 362 Telecommunication Services companies, Tata Communications ranks worse than 56.08% on this metric.
The historical rank and industry rank for Tata Communications's Pretax Margin % or its related term are showing as below:
NSE:TATACOMM'
s Pretax Margin % Range Over the Past 10 Years
Min: -3.01 Med: 6.07 Max: 11.96
Current: 5.8
NSE:TATACOMM's Pretax Margin % is ranked worse than 56.08% of 362
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs NSE:TATACOMM: 5.80
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Tata Communications Pretax Margin % Related Terms
Tata Communications Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Tata Communications's Pretax 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: Pretax Margin % Comparison
For the Telecom Services subindustry, Tata Communications's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Tata Communications's Pretax Margin % falls into.
* 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 Pretax Margin % of 6.62% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tata Communications and its competitors. This is near median its historical median of 6.07. According to the industry distribution chart, Tata Communications ranks #203 out of 362 companies in the Telecommunication Services industry, placing it in the top 56.1%.
Is Tata Communications' Pretax Margin % too high?
Tata Communications' current Pretax Margin % of 6.62% is near median its 10-year median of 6.07. The Telecommunication Services industry median Pretax Margin % is 7.64. Tata Communications' value of 6.62% is 13.4% below this industry median. Based on the distribution chart, Tata Communications ranks #203 out of 362 companies in the Telecommunication Services industry, which is below 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' Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #203 out of 362 companies for Pretax Margin %. This places Tata Communications in the lower half of its industry. The industry median Pretax Margin % is 7.64. Tata Communications' value of 6.62% is 13.4% below this benchmark. While the company's 10-year median is 6.07 vs. the industry median of 7.64, 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 Pretax Margin % for a Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.64, based on 362 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current Pretax Margin % of 6.62% is 13.4% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current Pretax Margin % is 6.62%, which is near median its own 10-year median of 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 ₹2,048.07, compared to a current price of ₹1,839.90 — trading 10.2% below its estimated fair value. The current Pretax Margin % is 6.62%, which is near median its 10-year median of 6.07 and 13.4% below the Telecommunication Services industry median of 7.64. Tata Communications' overall GF Score™ is 81/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Pretax Margin % is 6.62% 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 ₹1,839.90 is trading 10.2% below its estimated GF Value™ of ₹2,048.07.
GuruFocus considers Tata Communications to be Modestly Undervalued.
Key valuation signals for NSE:TATACOMM:
Pretax Margin %: 6.62% (near median its 10-year median of 6.07)
GF Value™: ₹2,048.07 vs. price of ₹1,839.90 (10.2% below fair value)
Industry Position: 13.4% below the Telecommunication Services median (#203 of 362)
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.
81GF Score
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