Tata Consultancy Services Ltd. share price target

TCS reported an in-line quarter. Revenue grew 1.3% QoQ and 11.2% YoY to INR 73,188 Cr, but constant currency growth was only 0.5% QoQ. International business improved to 1.2% QoQ CC, while India fell 10.3% on a project deferral.

We maintain our BUY rating on the stock.

TCS delivered an encouraging Q2FY27 performance beneath a modest +0.5% q/q and +2.8% y/y CC growth. International revenue accelerated to +1.2% q/q CC, supported by the UK (+3.5%), BFSI (+2.5%), and Manufacturing and Technology (+3.1% each), however, a sharp 10.3% decline in India following project deferrals.

Growth remains subdued despite broad-based recovery: Q2 saw broad-based improvement across BFSI (+3.9% YoY CC), Manufacturing (+4.2% YoY CC) and Technology & Services (+4.8% YoY CC). However, overall growth remains modest, as management noted that the demand environment continues to be...

TCS delivered a clean Q2. Revenue came in at Rs 73,188cr, up 1.3% QoQ and 11.2% YoY. In dollar terms, it was USD 7,642mn, and CC growth was 0.5%/2.8% QoQ/YoY. International markets grew 1.2% QoQ, with all regions up sequentially and the UK leading at 3.5%. Growth also broadened across verticals, with BFSI up 2.5% QoQ and manufacturing and technology up 3.1% each. The soft spots were consumer (down 0.7%), energy (down 0.5%) and India, which fell on a project deferral that management expects to return, so we see no structural issue there....

Tata Consultancy Services (TCS IN) Q2FY27 Result Update Balancing growth at the cost of margins BUY

Revenue broadly in line, international business grew. Margin came in a bit weak. Commentary indicates focus on growth

TCS reported 2QFY27 USD revenue of USD7.6b, rising 0.5% QoQ in CC, in line with our estimate of 0.5% QoQ CC growth. 2Q growth was led by Manufacturing/Hi-Tech/BFSI, which grew 3.1%/3.1%/2.5% QoQ CC, while regional markets/consumer business declined 5.8%/0.7% QoQ CC.

TCS, through its wholly owned subsidiary TCS Netherlands B.V., has announced the acquisition of 100% equity shares of MHP Management und IT-Beratung GmbH (MHP), Porsche AG's Germany-based management and IT consulting subsidiary, for an enterprise value of EUR 320 million (approx. INR 3,550 Cr).

Revenue growth should accelerate from Q2 as the USD 9.5 billion TCV backlog converts, three of four soft verticals recover, and BFSI sustains. Margin trajectory is upward from the Q1 trough toward 25%+ exit.

TCS’ management is optimistic about demand recovery in Q2 on the back of pent-up demand and multiple net-new wins.

TCS reported 1QFY27 USD revenue of USD7.6b, up 0.4% QoQ in CC and above our estimate of flat QoQ CC growth. 1Q growth was led by Hi-tech/BFSI/regional markets, up 1.7%/1.6%/4.0% QoQ cc, while consumer/healthcare fell 4.0%/1.0% QoQ cc.

Reported PAT increased 12.1% YoY to Rs. 13,784cr, driven by margin expansion, favourable currency movement and reduced one-off expenses. TCS reported a TCV of $12bn in Q3FY26, of which $5.4bn came from North America. BFSI accounted for $3.9bn and the consumer business group $2.8bn. The company delivered strong single-digit revenue growth, supported by broadbased client additions, accelerating AI momentum, mega-deal wins and improved *over or under performance to benchmark index execution across key verticals. The impact from the Middle East conflict remains limited, confined mainly to regional operations and select travel and transportation clients. TCS is well positioned to benefit from enterprise AI adoption as clients move...

View on FY27 positive vis--vis FY26 due to exit momentum, order inflow and traction in new age services

Q4FY26 revenue at INR 70,698 Cr (+5.4% QoQ reported, +1.2% QoQ CC), marking the third consecutive quarter of sequential growth after a prolonged deceleration.

AI-led transformation to drive next leg of growth: The company is witnessing strong traction in AI-led services, with annualised AI revenue crossing US$2.3 bn (+27% QoQ, US%1.8 bn in Q3) and increasing enterprise adoption across verticals. Strategic partnerships with OpenAI (100MW scalable to 1GW), AMD and hyperscalers, along with investments in HyperVault, position TCS at the centre of large-scale AI infrastructure & transformation opportunities. Management highlighted increasing deal sizes and faster conversion cycles as enterprises move from pilots to scaled deployments, implying superior revenue...

TCS Q4's performance of 1.2% QoQ CC growth was largely in line with our estimates of 1.3% growth, aided by broad-based growth across all major geographies and segments except BFSI & CMT. AI revenue momentum continued with annualized revenue of USD 2.3 bn, up 27.8% QoQ and now forms 7.7% of revenue mix. However, geopolitical conflicts are not only having a direct impact on Travel and Transportation verticals, but delaying decisions within key verticals, especially BFSI. The vertical (BFSI) reported 2.9% USD growth in FY26, which will likely create a headwind in FY27E. The deal TCV growth remains weak (3.6% YoY) at 40.7b, despite the company winning 5...

We maintain our BUY rating on the stock, with a target price of Rs 3,155/share, implying an upside of 22% from the CMP.

TCS reported 4QFY26 USD revenue of USD7.6b, up 1.2% QoQ in CC (0.8% in organic cc terms), largely in line with our estimate of 1.5% growth. FY26 revenue declined 2.4% YoY CC.

Despite higher revenue, reported PAT declined 13.9% YoY to Rs. 10,720cr, primari- ly due to exceptional one-off items totalling Rs. 3,391cr, including restructuring expenses, the impact of new labour code and legal claim provision. TCS reported a TCV of $9.3bn in Q3FY26, of which $4.9bn came from North America. BFSI accounted for $3.8bn and the consumer business group $1.4bn. TCS displayed stable financial results in Q3, marked by healthy client engagement, strong deal momentum and growing leadership in AI-led solutions. Despite a challenging macro environment with geopolitical uncertainty and cautious spending, the company secured large contracts, enhanced its digital and cloud offerings and...