Tata CommunicationsNSE:TATACOMM -0.76%80 Quick Ratio is 0.48 as of Mar. 2026, which is 14% below its 10-year median of 0.56. GuruFocus rates NSE:TATACOMM with a GF Score™ of 80/100 and a GF Value™ of ₹2,045.22 (Fairly Valued). The stock has 8 warning signs investors should review. Among 367 Telecommunication Services companies, Tata Communications ranks worse than 86.65% on this metric.
Tata Communications has a quick ratio of 0.48. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Tata Communications's Quick Ratio or its related term are showing as below:
NSE:TATACOMM'
s Quick Ratio Range Over the Past 10 Years
Min: 0.43 Med: 0.56 Max: 0.75
Current: 0.48
During the past 13 years, Tata Communications's highest Quick Ratio was 0.75. The lowest was 0.43. And the median was 0.56.
NSE:TATACOMM's Quick Ratio is ranked worse than 86.65% of 367
companies
in the Telecommunication Services industry
Industry Median: 1.05
vs NSE:TATACOMM: 0.48
Tata Communications (NSE:TATACOMM) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Tata Communications Quick Ratio Related Terms
Tata Communications Quick Ratio Historical Data
* Premium members only.
The historical data trend for Tata Communications's Quick 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.
NSE:TATACOMM vs TMUS, VZ, T: Quick Ratio Comparison
For the Telecom Services subindustry, Tata Communications's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tata Communications's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Tata Communications's Quick Ratio 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 Quick Ratio of 0.48 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Tata Communications and its competitors. This is 14% below median its historical median of 0.56. Over the past decade, Tata Communications' Quick Ratio has ranged from 0.43 to 0.75. According to the industry distribution chart, Tata Communications ranks #318 out of 367 companies in the Telecommunication Services industry, placing it in the top 86.6%.
Is Tata Communications' Quick Ratio too high?
Tata Communications' current Quick Ratio of 0.48 is 14% below median its 10-year median of 0.56. Over the past 10 years, this metric has ranged from a low of 0.43 to a high of 0.75. The Telecommunication Services industry median Quick Ratio is 1.05. Tata Communications' value of 0.48 is 54.3% below this industry median. Based on the distribution chart, Tata Communications ranks #318 out of 367 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. 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' Quick Ratio compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #318 out of 367 companies for Quick Ratio. This places Tata Communications in the lower half of its industry. The industry median Quick Ratio is 1.05. Tata Communications' value of 0.48 is 54.3% below this benchmark. Historically, Tata Communications' own Quick Ratio has ranged from 0.43 to 0.75 over the past decade. While the company's 10-year median is 0.56 vs. the industry median of 1.05, 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 Quick Ratio for a Telecommunication Services company?
The median Quick Ratio among Telecommunication Services companies is 1.05, based on 367 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current Quick Ratio of 0.48 is 54.3% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current Quick Ratio is 0.48, which is 14% below median its own 10-year median of 0.56. 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 ₹2,045.22, compared to a current price of ₹1,856.20 — trading 9.2% below its estimated fair value. The current Quick Ratio is 0.48, which is 14% below median its 10-year median of 0.56 and 54.3% below the Telecommunication Services industry median of 1.05. 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 Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current Quick Ratio is 0.48 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 ₹2,045.22.
GuruFocus considers Tata Communications to be Fairly Valued.
Key valuation signals for NSE:TATACOMM:
Quick Ratio: 0.48 (14% below median its 10-year median of 0.56)
GF Value™: ₹2,045.22 vs. price of ₹1,856.20 (9.2% below fair value)
Industry Position: 54.3% below the Telecommunication Services median (#318 of 367)
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
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