Tata Teleservices (Maharashtra) Limited

Communication Services — Telecom Services · NSE

₹33.51+₹0.05 (+0.15%)

DalalBaazaar Score

21 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Tata Teleservices (Maharashtra) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Tata Teleservices (Maharashtra) Limited provides wire line voice, data, and managed telecom services to enterprise customers in Maharashtra and Goa. The company offers its information and communication solutions under the Tata Tele Business Services brand name.

IndustryTelecom Services

SectorCommunication Services

Employees396

Annual revenue₹1,150 Cr

How does it make money?

Turns over ₹1,150 Cr a year. Of every ₹100 of sales, about ₹-19 reaches shareholders as profit, with ₹54 left at the operating level before interest, tax and depreciation. Each of its 396 employees supports ₹2.90 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.90 Cr

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +4% while net margin moved -82% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+4%

Margin effect-82%

DalalBaazaar Score

21/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

21/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

176.4x

Sector Median

21.7x

median of 2 sector peers

⚠️Against its sector it trades 711% above the peer median of 21.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

21.7x median of 2 peers · +711%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

40.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 45.2% to 54.3% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹215 Cr in the latest reported year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.01 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 45.2% to 54.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 30.3x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 711% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 1.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 52%✓ 54.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 30.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 1.5% CAGR
Latest reported year was 6.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹532 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹6,551 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

176.4x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.19

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

6.1%

Modest

Modest growth

Profit Growth (YoY)

83.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹532 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

43.6%

Good

Healthy core-business profitability

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

0.01

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

34.4 / 36.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,101 Cr	₹1,187 Cr	₹1,301 Cr	₹1,150 Cr	+1.5%
EBITDA	₹498 Cr	₹534 Cr	₹578 Cr	₹624 Cr	+7.8%
EBITDA Margin	45.2%	45.0%	44.4%	54.3%	—
PAT (Net Profit)	-₹1,145 Cr	-₹1,228 Cr	-₹1,275 Cr	-₹215 Cr	—
EPS	₹-5.86	₹-6.28	₹-6.52	₹-1.1	—
Total Debt	₹18,086 Cr	₹20,047 Cr	₹18,639 Cr	₹18,931 Cr	+1.5%
Free Cash Flow	₹447 Cr	₹478 Cr	₹406 Cr	₹532 Cr	+6.0%

🟡 Revenue has been broadly flat over 3 years (1.5% a year).

🟢 EBITDA has grown at 7.8% a year over 3 years.

🟢 EBITDA Margin has risen from 45.2% to 54.3% over 3 years (+9.0 pts).

🟡 Total Debt has been broadly flat over 3 years (1.5% a year).

🟢 Free Cash Flow has grown at 6.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,341 Cr

Total Liabilities

₹21,324 Cr

Cash & Equivalents

₹15 Cr

Operating Cash Flow

₹668 Cr

Capex

-₹135 Cr

Shareholding (proxy)

Institutional Holding

2.0%

Insider Holding

74.4%

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

2 mixed4 general

Tata Teleservices Maharashtra Share Price Target 2026: Rs 51.3 Analyst Forecast

Univest, 26 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Tata Teleservices Maharashtra shares surge most in over 15 months; here is why

Upstox, 28 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Why Tata Teleservices (Maharashtra) Share Price Rallied on Thursday?

Equitymaster, 13 Aug

This Tata Group stock jumps 6% despite fall in Sensex, Nifty - What's behind crash defying surge and what lies ahead?

Livemint, 28 Sept

Volumes jump at Tata Teleservices (Maharashtra) Ltd counter

Business Standard, 28 Sept

Tata Teleservices (Maharashtra) reports superannuation of Pravir Dahiya

scanx.trade, 30 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Tata Teleservices (Maharashtra) Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑