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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Tata Communications's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was -3.91%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Tata Communications's 3-Year ROIIC % or its related term are showing as below:
NSE:TATACOMM's 3-Year ROIIC % is ranked worse than 63.92% of 352
companies
in the Telecommunication Services industry
Industry Median: 1.54
vs NSE:TATACOMM: -3.91
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Tata Communications 3-Year ROIIC % Related Terms
Tata Communications 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Tata Communications's 3-Year ROIIC % 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 VZ, TMUS, T: 3-Year ROIIC % Comparison
For the Telecom Services subindustry, Tata Communications's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Tata Communications's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Tata Communications's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Tata Communications (NSE:TATACOMM) has a 3-Year ROIIC % of -3.91 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tata Communications and its competitors. According to the industry distribution chart, Tata Communications ranks #225 out of 352 companies in the Telecommunication Services industry, placing it in the top 63.9%.
Is Tata Communications' 3-Year ROIIC % too high?
Tata Communications' current 3-Year ROIIC % is -3.91. Based on the distribution chart, Tata Communications ranks #225 out of 352 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Tata Communications has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Communications' 3-Year ROIIC % compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Tata Communications ranks #225 out of 352 companies for 3-Year ROIIC %. This places Tata Communications in the lower half of its industry. The industry median 3-Year ROIIC % is 1.54. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Telecommunication Services company?
The median 3-Year ROIIC % among Telecommunication Services companies is 1.54, based on 352 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Tata Communications and its competitors. For the Telecommunication Services industry, the median 3-Year ROIIC % is 1.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Communications's current 3-Year ROIIC % is -3.91. 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 ₹2,024.21, compared to a current price of ₹1,689.80 — trading 16.5% below its estimated fair value. The current 3-Year ROIIC % is -3.91. Tata Communications' overall GF Score™ is 79/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Tata Communications (NSE:TATACOMM), the current 3-Year ROIIC % is -3.91 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 ₹1,689.80 is trading 16.5% below its estimated GF Value™ of ₹2,024.21.
GuruFocus considers Tata Communications to be Modestly Undervalued.
Key valuation signals for NSE:TATACOMM:
3-Year ROIIC %: -3.91
GF Value™: ₹2,024.21 vs. price of ₹1,689.80 (16.5% below fair value)
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.
79GF Score
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