Tata Consultancy Services Limited (IN:TCS)
:TCS
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Tata Consultancy Services Limited
(TCS)
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Rating:76Outperform
Price Target:
₹2,533.00
▼(-5.91% Downside)
Action:Reiterated
Date:06/04/26
The score is driven primarily by strong financial performance (high profitability, low leverage, and robust cash generation) and supportive valuation (reasonable P/E and high dividend yield). These positives are partly offset by weaker technicals, with the stock trading below key moving averages and negative MACD.
Positive Factors
Strong free cash flow generation
TCS generates very large, recurring free cash flow that has grown materially over several years and converts closely to reported earnings. This durable cash engine supports reinvestment, dividends, buybacks and balance sheet resilience, underpinning long-term strategic optionality.
Negative Factors
Decelerating revenue growth
Top-line growth has slowed materially, reflecting tougher demand, pricing headwinds or mix shifts. Persistently weak revenue growth can limit operating leverage, slow free cash flow expansion, and constrain investment and account expansion over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
TCS generates very large, recurring free cash flow that has grown materially over several years and converts closely to reported earnings. This durable cash engine supports reinvestment, dividends, buybacks and balance sheet resilience, underpinning long-term strategic optionality.
Read all positive factors
Tata Consultancy Services Limited (TCS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹7.98T
Dividend Yield3.55%
Average Volume (3M)239.35K
Price to Earnings (P/E)16.2
Beta (1Y)0.90
Revenue Growth4.58%
EPS Growth1.35%
CountryIN
Employees607,979
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)136.01
Shares Outstanding3,618,087,400
10 Day Avg. Volume255,633
30 Day Avg. Volume239,351
Financial Highlights & Ratios
PEG Ratio12.79
Price to Book (P/B)7.95
Price to Sales (P/S)3.20
P/FCF Ratio16.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹2,968.75Price Target Upside10.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)155.1
Revenue Forecast (FY)₹2.89T
Tata Consultancy Services Limited Business Overview & Revenue Model
Company Description
Tata Consultancy Services Limited (TCS) is a worldwide leader in delivering information technology and IT-enabled services. Its extensive operations are structured into distinct business segments, encompassing Banking, Financial Services and Insur...
How the Company Makes Money
TCS makes money primarily by delivering technology and business services to enterprise and government clients under commercial contracts. Its revenue model is largely services-led: (1) IT Services and Consulting Fees: TCS earns fees for consulting...
Tata Consultancy Services Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
91
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.67T | 2.55T | 2.41T | 2.25T | 1.92T |
| Gross Profit | 825.67B | 1.10T | 1.08T | 1.06T | 914.87B |
| EBITDA | 722.65B | 713.69B | 677.30B | 626.62B | 568.57B |
| Net Income | 492.10B | 485.53B | 459.08B | 421.47B | 383.27B |
Balance Sheet | |||||
| Total Assets | 1.82T | 1.60T | 1.46T | 1.44T | 1.42T |
| Cash, Cash Equivalents and Short-Term Investments | 466.78B | 408.72B | 435.83B | 455.26B | 445.97B |
| Total Debt | 112.83B | 93.92B | 80.21B | 76.88B | 78.18B |
| Total Liabilities | 737.68B | 638.58B | 551.30B | 524.45B | 516.68B |
| Stockholders Equity | 1.07T | 947.56B | 904.89B | 904.24B | 891.39B |
Cash Flow | |||||
| Free Cash Flow | 505.06B | 449.71B | 416.64B | 388.65B | 369.54B |
| Operating Cash Flow | 542.85B | 489.08B | 443.38B | 419.65B | 399.49B |
| Investing Cash Flow | -159.34B | -23.18B | 60.26B | 390.00M | -8.97B |
| Financing Cash Flow | -412.35B | -474.38B | -485.36B | -478.78B | -335.81B |
Tata Consultancy Services Limited Technical Analysis
Negative
2692.15
Price Trends
2333.85
Negative
2496.86
Negative
2757.87
Negative
Market Momentum
-45.87
Negative
37.53
Neutral
62.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TCS, the sentiment is Negative. The current price of 2692.15 is above the 20-day moving average (MA) of 2224.84, above the 50-day MA of 2333.85, and below the 200-day MA of 2757.87, indicating a bearish trend. The MACD of -45.87 indicates Negative momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TCS.
Tata Consultancy Services Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹7.98T | 16.20 | ― | 3.55% | 4.58% | 1.35% | |
70 Outperform | ₹3.15T | 18.78 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.57T | 14.40 | ― | 2.70% | 9.61% | 11.08% | |
67 Neutral | ₹1.19T | 23.62 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.42T | 26.68 | ― | 2.76% | 7.22% | 12.99% | |
65 Neutral | ₹1.92T | 14.52 | ― | 4.05% | 3.97% | 0.34% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:TCS
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Tata Consultancy Services Limited Corporate Events
TCS Enters Agentic AI Commerce with Global Rezolve Ai Partnership
May 12, 2026
Tata Consultancy Services has formed a global strategic partnership with Rezolve Ai, an AI-native commerce infrastructure provider, marking TCS’s entry into the agentic AI commerce market. The collaboration will see TCS deploy Rezolve AiR...
TCS Launches Independent Probe and Oversight Panel Over Nashik Matter
Apr 17, 2026
Tata Consultancy Services said its CEO and managing director, K. Krithivasan, has outlined steps the company is taking in response to a recent matter involving its Nashik unit. The company emphasized that the Nashik facility remains operational an...
TCS Files FY2026 Earnings Call Transcript with Stock Exchanges
Apr 14, 2026
Tata Consultancy Services Limited notified the Indian stock exchanges that it has released the official transcript of its earnings conference call for the fourth quarter and full year ended March 31, 2026. The call, held on April 9, 2026, featured...
TCS and Pearson Forge Multi-Year AI Learning Partnership to Build Future-Ready Workforces
Mar 18, 2026
Tata Consultancy Services has entered a multi-year integrated partnership with Pearson to deliver AI-powered learning and assessment solutions aimed at helping enterprises build future-ready workforces. The collaboration combines Pearson’s l...
TPG Takes 49% Stake in TCS’s HyperVault, Ending Wholly Owned Status
Mar 9, 2026
Tata Consultancy Services has completed a transaction that brings private equity-backed TPG Terabyte Bidco in as a significant investor in its data center-focused subsidiary HyperVault AI Data Center Limited, which was incorporated in late 2025 an...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.