Telecommunication - Service Provider · Founded 1995 · www.tatatelebusiness.com · BSE 532371 · NSE TATA TELESER · ISIN INE517B01013
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Business
Tata Teleservices (Maharashtra) Ltd. (TTML) is an Indian telecommunication service provider. After divesting its consumer mobile business, the company, operating under the brand "Tata Tele Business Services" (TTBS), primarily focuses on providing a comprehensive suite of connectivity, collaboration, cloud, and security solutions to enterprise customers across India. Its core business model involves offering various telecom services such as internet leased lines, VPN, SD-WAN, cloud communication, voice, data, and value-added services. TTML generates revenue through subscription fees, usage charges for its connectivity solutions, and fees for integrated business services provided to its enterprise client base.
Revenue Mix
TTML's revenue is now almost entirely derived from its enterprise business segment. This segment includes:
Data Services: Internet Leased Lines (ILL), MPLS-based Virtual Private Networks (VPN), Software Defined Wide Area Network (SD-WAN), cloud services, IoT solutions, and cybersecurity services.
Voice Services: Business landline services, Centrex, and other voice solutions for enterprises.
Cloud & SaaS: Offering various Software-as-a-Service and cloud-based communication and collaboration tools.
While specific contribution percentages are not always publicly segregated, the strategic focus and majority of revenue stem from its data and connectivity solutions for businesses.
Industry
TTML operates in the highly competitive Indian telecommunication services industry, specifically targeting the enterprise segment. The broader telecom sector is dominated by three large private players (Reliance Jio, Bharti Airtel, Vodafone Idea). TTML is positioned as a niche player within this ecosystem, focusing on B2B clients rather than the mass consumer market. It leverages its existing robust fiber optic network and the credibility of the Tata brand to compete with the enterprise divisions of larger telecom operators (e.g., Airtel Business, JioBusiness) and other specialized IT/telecom service providers.
MOAT
Brand Reputation: Being part of the Tata Group provides significant brand credibility, trust, and a perception of reliability, which is crucial for securing and retaining enterprise clients.
Established Network Infrastructure: TTML possesses an existing fiber optic network and data centers, providing a foundational asset for delivering its services, although not as extensive as the largest operators.
Focused Enterprise Strategy: Its dedicated focus on enterprise solutions allows for specialized service offerings and potentially deeper understanding of business client needs compared to players balancing both consumer and enterprise.
Switching Costs: For complex integrated enterprise solutions, switching providers can involve significant operational disruption and costs, creating a degree of customer stickiness.
Growth Drivers
Digital Transformation of Indian Businesses: Increasing adoption of digitalization, cloud computing, IoT, and cybersecurity by SMEs and large enterprises drives demand for robust and reliable connectivity and related services.
Expansion of Value-Added Services: Growing the portfolio of offerings beyond basic connectivity to include SD-WAN, Managed Security, Cloud Communications, and industry-specific IoT solutions can drive revenue growth and higher margins.
Government Initiatives: "Digital India" and other government thrusts on digitalization across sectors encourage greater adoption of enterprise communication and IT services.
Increased Data Consumption: The overall trend of higher data consumption by businesses fuels demand for high-bandwidth solutions like Internet Leased Lines.
Risks
Intense Competition: The enterprise telecom segment is highly competitive, with larger, financially stronger players like Airtel and Jio actively expanding their B2B offerings.
Financial Health and Legacy Debt: TTML has historically faced significant financial challenges, accumulated losses, and high debt. While some debt has been restructured (e.g., conversion of AGR dues to government equity), ongoing capital requirements for network upgrades and expansion remain a concern.
Regulatory Risks: The Indian telecom sector is subject to evolving regulations, spectrum pricing policies, and licensing conditions, which can impact operational costs and profitability.
Technological Obsolescence: Continuous need for capital expenditure to upgrade network infrastructure and adopt new technologies (e.g., 5G-enabled enterprise solutions) to remain competitive.
Limited Scale: Compared to dominant players, TTML's relatively smaller scale might limit its ability to achieve economies of scale in network operations and technology investments.
Management & Ownership
TTML is part of the esteemed Tata Group, which is its primary promoter. Tata Sons (the holding company of the Tata Group) holds a significant stake, reflecting strong promoter backing and governance oversight. The company's management consists of experienced professionals, operating under the strategic guidance and ethical framework of the Tata Group. Post the conversion of Adjusted Gross Revenue (AGR) dues interest into equity, the Government of India also holds a minority stake in the company.
Outlook
TTML is strategically focused on the enterprise segment, a growing market driven by digital transformation. The company benefits from the strong Tata brand, which enhances trust and credibility with business clients. Its dedicated focus on B2B services, including specialized data, voice, and cloud solutions, positions it to capture a share of this expanding market. However, the path to sustained profitability is challenged by intense competition from larger, better-capitalized players and the company's historical financial legacy, which necessitates careful capital management and efficient operations. Success hinges on its ability to continually innovate, expand its value-added services portfolio, and effectively leverage its existing network infrastructure while maintaining financial discipline.
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| #(Fig in Cr.) | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 296 | 323 | 324 | 344 | 333 | 308 | 284 | 286 | 294 | 296 |
| Other Income | 5 | 3 | 6 | 3 | 2 | 5 | 4 | 4 | 3 | 4 |
| Total Income | 301 | 327 | 329 | 346 | 335 | 313 | 288 | 290 | 298 | 300 |
| Total Expenditure | 160 | 182 | 189 | 206 | 184 | 158 | 140 | 148 | 121 | 135 |
| Operating Profit | 141 | 144 | 140 | 140 | 151 | 155 | 149 | 142 | 177 | 165 |
| Interest | 411 | 414 | 423 | 429 | 423 | 419 | 433 | 425 | 288 | 215 |
| Depreciation | 38 | 39 | 41 | 42 | 43 | 42 | 37 | 37 | 36 | 32 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | -4 | 0 | -4 | 663 |
| Profit Before Tax | -308 | -309 | -323 | -330 | -315 | -306 | -325 | -321 | -150 | 581 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -308 | -309 | -323 | -330 | -315 | -306 | -325 | -321 | -150 | 581 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -308 | -309 | -323 | -330 | -315 | -306 | -325 | -321 | -150 | 581 |
| Adjusted Earnings Per Share | -1.6 | -1.6 | -1.7 | -1.7 | -1.6 | -1.6 | -1.7 | -1.6 | -0.8 | 3 |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | 2972 | 2703 | 1869 | 1277 | 1078 | 1044 | 1094 | 1106 | 1192 | 1308 | 1160 | 1160 |
| Other Income | 69 | 104 | 211 | 533 | 35 | 24 | 17 | 17 | 16 | 16 | 15 | 15 |
| Total Income | 3041 | 2807 | 2079 | 1811 | 1112 | 1068 | 1111 | 1123 | 1208 | 1324 | 1175 | 1176 |
| Total Expenditure | 2256 | 2126 | 1878 | 1078 | 656 | 555 | 626 | 614 | 664 | 737 | 543 | 544 |
| Operating Profit | 785 | 681 | 202 | 733 | 456 | 513 | 485 | 509 | 544 | 587 | 633 | 633 |
| Interest | 684 | 1282 | 1569 | 1554 | 1545 | 1561 | 1539 | 1502 | 1622 | 1694 | 1361 | 1361 |
| Depreciation | 460 | 796 | 533 | 178 | 195 | 169 | 160 | 147 | 150 | 168 | 142 | 142 |
| Exceptional Income / Expenses | 0 | -959 | -7942 | 331 | -2430 | -780 | 0 | -5 | 0 | 0 | 655 | 655 |
| Profit Before Tax | -358 | -2356 | -9842 | -668 | -3714 | -1997 | -1215 | -1145 | -1228 | -1275 | -215 | -215 |
| Provision for Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Tax | -358 | -2356 | -9842 | -668 | -3714 | -1997 | -1215 | -1145 | -1228 | -1275 | -215 | -215 |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit After Adjustments | -358 | -2356 | -9842 | -668 | -3714 | -1997 | -1215 | -1145 | -1228 | -1275 | -215 | -215 |
| Adjusted Earnings Per Share | -1.8 | -12.1 | -50.3 | -3.4 | -19 | -10.2 | -6.2 | -5.9 | -6.3 | -6.5 | -1.1 | -1.1 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -11% | 2% | 2% | -9% |
| Operating Profit CAGR | 8% | 8% | 4% | -2% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -39% | -18% | 16% | 21% |
| ROE Average | 0% | 0% | 0% | 0% |
| ROCE Average | 158% | 89% | 69% | -66% |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Shareholder's Funds | -3986 | -5909 | -15159 | -14820 | -17479 | -18491 | -18832 | -19055 | -19253 | -19570 | -19983 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 7245 | 10662 | 7862 | 5708 | 6138 | 9869 | 10711 | 10027 | 12957 | 10865 | 2920 |
| Other Non-Current Liabilities | 284 | 2 | 124 | 22 | 178 | 122 | 63 | 17 | 69 | 52 | 221 |
| Total Current Liabilities | 5919 | 7151 | 9230 | 11431 | 12877 | 10009 | 9423 | 10221 | 7535 | 9957 | 18184 |
| Total Liabilities | 9462 | 11906 | 3380 | 4531 | 1714 | 1509 | 1365 | 1211 | 1307 | 1304 | 1341 |
| Fixed Assets | 5364 | 9937 | 847 | 718 | 894 | 830 | 779 | 740 | 788 | 798 | 939 |
| Other Non-Current Assets | 3051 | 717 | 649 | 295 | 225 | 191 | 207 | 199 | 228 | 211 | 218 |
| Total Current Assets | 1047 | 1252 | 803 | 1107 | 596 | 488 | 378 | 271 | 290 | 294 | 184 |
| Total Assets | 9462 | 11906 | 3380 | 4531 | 1714 | 1509 | 1365 | 1211 | 1307 | 1304 | 1341 |
| #(Fig in Cr.) | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 49 | 65 | 37 | 39 | 171 | 85 | 43 | 17 | 14 | 32 | 42 |
| Cash Flow from Operating Activities | 766 | 730 | 603 | -734 | -360 | 567 | 530 | 558 | 587 | 505 | 668 |
| Cash Flow from Investing Activities | -1183 | -2198 | 259 | -101 | 510 | -177 | -130 | -66 | -65 | -109 | -91 |
| Cash Flow from Financing Activities | 434 | 1041 | -860 | 967 | -237 | -432 | -427 | -494 | -503 | -386 | -604 |
| Net Cash Inflow / Outflow | 18 | -427 | 2 | 132 | -87 | -42 | -26 | -2 | 18 | 10 | -27 |
| Closing Cash & Cash Equivalent | 67 | -362 | 39 | 171 | 85 | 43 | 17 | 14 | 32 | 42 | 15 |
| # | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -1.83 | -12.05 | -50.34 | -3.42 | -19 | -10.21 | -6.22 | -5.86 | -6.28 | -6.52 | -1.1 |
| CEPS(Rs) | 0.52 | -7.98 | -47.62 | -2.51 | -18 | -9.35 | -5.4 | -5.1 | -5.51 | -5.66 | -0.38 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | -20.39 | -30.23 | -77.54 | -75.81 | -89.41 | -94.59 | -96.33 | -97.47 | -98.48 | -100.11 | -102.22 |
| Core EBITDA Margin(%) | 24.09 | 21.33 | -0.48 | 15.59 | 39.13 | 46.84 | 42.75 | 44.52 | 44.26 | 43.64 | 53.21 |
| EBIT Margin(%) | 10.94 | -39.74 | -442.76 | 69.38 | -201.26 | -41.73 | 29.65 | 32.26 | 32.99 | 32.01 | 98.75 |
| Pre Tax Margin(%) | -12.06 | -87.18 | -526.73 | -52.27 | -344.62 | -191.32 | -111.08 | -103.49 | -103.09 | -97.5 | -18.56 |
| PAT Margin (%) | -12.06 | -87.18 | -526.73 | -52.27 | -344.62 | -191.32 | -111.08 | -103.49 | -103.09 | -97.5 | -18.56 |
| Cash Profit Margin (%) | 3.41 | -57.74 | -498.21 | -38.37 | -326.53 | -175.15 | -96.43 | -90.18 | -90.46 | -84.66 | -6.33 |
| ROA(%) | -4.62 | -22.06 | -128.77 | -16.88 | -118.95 | -123.88 | -84.56 | -88.9 | -97.58 | -97.7 | -16.28 |
| ROE(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ROCE(%) | 5.37 | -11.95 | -154.21 | 82.65 | -457.8 | -542.57 | 35.84 | 43.46 | 53.41 | 56.84 | 157.86 |
| Receivable days | 30.14 | 34.96 | 37.58 | 35.32 | 35.74 | 34.96 | 33.28 | 38.1 | 40.67 | 41.93 | 37.77 |
| Inventory Days | 1.05 | 0.45 | 0.21 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Payable days | 7073.11 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PER(x) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Price/Book(x) | -0.33 | -0.24 | -0.07 | -0.04 | -0.02 | -0.15 | -1.73 | -0.57 | -0.75 | -0.56 | -0.31 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 4.33 | 6.51 | 8.89 | 13.29 | 15.74 | 21.22 | 47.82 | 27.72 | 28.85 | 23.94 | 23.07 |
| EV/Core EBITDA(x) | 16.41 | 25.85 | 82.44 | 23.17 | 37.19 | 43.16 | 107.95 | 60.2 | 63.25 | 53.37 | 42.31 |
| Net Sales Growth(%) | 2.74 | -9.06 | -30.87 | -31.65 | -15.62 | -3.16 | 4.8 | 1.13 | 7.73 | 9.77 | -11.3 |
| EBIT Growth(%) | 815.54 | -430.2 | -670.23 | 110.71 | -344.77 | 79.92 | 174.47 | 10.02 | 10.18 | 6.51 | 173.61 |
| PAT Growth(%) | 41.76 | -557.61 | -317.66 | 93.22 | -456.34 | 46.24 | 39.15 | 5.78 | -7.31 | -3.82 | 83.12 |
| EPS Growth(%) | 41.76 | -557.61 | -317.66 | 93.22 | -456.34 | 46.24 | 39.15 | 5.78 | -7.31 | -3.82 | 83.12 |
| Debt/Equity(x) | -2.92 | -2.75 | -1.03 | -1.12 | -0.96 | -1.05 | -1.05 | -1.04 | -1.04 | -1.04 | -1.03 |
| Current Ratio(x) | 0.18 | 0.18 | 0.09 | 0.1 | 0.05 | 0.05 | 0.04 | 0.03 | 0.04 | 0.03 | 0.01 |
| Quick Ratio(x) | 0.18 | 0.17 | 0.09 | 0.1 | 0.05 | 0.05 | 0.04 | 0.03 | 0.04 | 0.03 | 0.01 |
| Interest Cover(x) | 0.48 | -0.84 | -5.27 | 0.57 | -1.4 | -0.28 | 0.21 | 0.24 | 0.24 | 0.25 | 0.84 |
| Total Debt/Mcap(x) | 8.99 | 11.52 | 14.46 | 27.57 | 47.46 | 7.05 | 0.6 | 1.83 | 1.38 | 1.85 | 3.38 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 |
| FII | 2.26 | 2.46 | 2.38 | 2.39 | 2.34 | 2.54 | 2.82 | 2.64 | 2.64 | 2.6 |
| DII | 0.05 | 0.06 | 0.07 | 0.09 | 0.1 | 0.11 | 0.12 | 0.13 | 0.14 | 0.17 |
| Public | 23.33 | 23.12 | 23.19 | 23.16 | 23.2 | 22.99 | 22.7 | 22.87 | 22.87 | 22.87 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 |
| FII | 4.42 | 4.81 | 4.65 | 4.67 | 4.58 | 4.96 | 5.51 | 5.16 | 5.15 | 5.08 |
| DII | 0.1 | 0.12 | 0.14 | 0.18 | 0.2 | 0.22 | 0.24 | 0.26 | 0.27 | 0.32 |
| Public | 45.61 | 45.2 | 45.34 | 45.28 | 45.35 | 44.94 | 44.38 | 44.71 | 44.7 | 44.72 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | -11% | +2% | +2% | -9% |
| Operating Profit CAGR | +8% | +8% | +4% | -2% |
| PAT CAGR | — | — | — | — |
| Share Price CAGR | -39% | -18% | +16% | +21% |
| ROE Average | 0% | 0% | 0% | 0% |
| ROCE Average | +158% | +89% | +69% | -66% |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 | 74.36 |
| FII | 2.26 | 2.46 | 2.38 | 2.39 | 2.34 | 2.54 | 2.82 | 2.64 | 2.64 | 2.6 |
| DII | 0.05 | 0.06 | 0.07 | 0.09 | 0.1 | 0.11 | 0.12 | 0.13 | 0.14 | 0.17 |
| Public | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 | 25.64 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 | 145.37 |
| FII | 4.42 | 4.81 | 4.65 | 4.67 | 4.58 | 4.96 | 5.51 | 5.16 | 5.15 | 5.08 |
| DII | 0.1 | 0.12 | 0.14 | 0.18 | 0.2 | 0.22 | 0.24 | 0.26 | 0.27 | 0.32 |
| Public | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 | 50.13 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 | 195.49 |
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