Tata CommunicationsNSE:TATACOMM -1.62%83 ROE % is 30.55% as of Mar. 2026, which is 55% below its 10-year median of 67.50. GuruFocus rates NSE:TATACOMM with a GF Score™ of 83/100 and a GF Value™ of ₹2,042.68 (Fairly Valued). The stock has 8 warning signs investors should review. Among 345 Telecommunication Services companies, Tata Communications ranks better than 90.14% on this metric.
The historical rank and industry rank for Tata Communications's ROE % or its related term are showing as below:
NSE:TATACOMM'
s ROE % Range Over the Past 10 Years
Min: -51.88 Med: 67.5 Max: 284.12
Current: 32.25
During the past 13 years, Tata Communications's highest ROE % was 284.12%. The lowest was -51.88%. And the median was 67.50%.
NSE:TATACOMM's ROE % is ranked better than 90.14% of 345
companies
in the Telecommunication Services industry
Industry Median: 7.35
vs NSE:TATACOMM: 32.25
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Tata Communications ROE % Related Terms
Tata Communications ROE % Historical Data
* Premium members only.
The historical data trend for Tata Communications's ROE % 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.
For the Telecom Services subindustry, Tata Communications's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Tata Communications's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Tata Communications (NSE:TATACOMM) has a ROE % of 30.55% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Communications and its competitors. This is 55% below median its historical median of 67.50. According to the industry distribution chart, Tata Communications ranks #34 out of 345 companies in the Telecommunication Services industry, placing it in the top 9.9%.
Is Tata Communications' ROE % too high?
Tata Communications' current ROE % of 30.55% is 55% below median its 10-year median of 67.50. The Telecommunication Services industry median ROE % is 7.35. Tata Communications' value of 30.55% is 315.6% above this industry median. Based on the distribution chart, Tata Communications ranks #34 out of 345 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. 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' ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #34 out of 345 companies for ROE %. This places Tata Communications in the top 10% of its industry — outperforming the majority of peers. The industry median ROE % is 7.35. Tata Communications' value of 30.55% is 315.6% above this benchmark. While the company's 10-year median is 67.50 vs. the industry median of 7.35, 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 ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.35, based on 345 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Communications's current ROE % of 30.55% is 315.6% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median ROE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current ROE % is 30.55%, which is 55% below median its own 10-year median of 67.50. 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 ₹2,042.68, compared to a current price of ₹1,906.70 — trading 6.7% below its estimated fair value. The current ROE % is 30.55%, which is 55% below median its 10-year median of 67.50 and 315.6% above the Telecommunication Services industry median of 7.35. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current ROE % is 30.55% 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 ₹2,042.68.
GuruFocus considers Tata Communications to be Fairly Valued.
Key valuation signals for NSE:TATACOMM:
ROE %: 30.55% (55% below median its 10-year median of 67.50)
GF Value™: ₹2,042.68 vs. price of ₹1,906.70 (6.7% below fair value)
Industry Position: 315.6% above the Telecommunication Services median (#34 of 345)
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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