Tata Consultancy Services Limited (IN:TCS)
:TCS
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Tata Consultancy Services Limited
(TCS)
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Rating:75Outperform
Price Target:
₹2,911.00
▲(8.13% Upside)
Action:ReiteratedDate:04/10/26
Score is driven primarily by strong financial performance (profitability, low leverage, and robust cash flow) and supported by an attractive dividend yield. These positives are partially offset by weaker technicals (below key longer-term moving averages with negative MACD) and signs of slowing growth/margin pressure in the financials.
Positive Factors
Strong free cash flow
TCS's rising free cash flow, which grew from ~₹356B to ~₹505B over 2021–2026, provides durable internal funding for reinvestment, dividends and buybacks. High cash conversion versus earnings underpins balance-sheet resilience and long-term capital allocation flexibility.
Negative Factors
Slowing revenue growth
A marked slowdown in top-line growth to low single digits reduces operating leverage and constrains the scale benefits that drive margins and cash generation. Prolonged deceleration would pressure reinvestment capacity and make it harder to maintain historic profit expansion rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
TCS's rising free cash flow, which grew from ~₹356B to ~₹505B over 2021–2026, provides durable internal funding for reinvestment, dividends and buybacks. High cash conversion versus earnings underpins balance-sheet resilience and long-term capital allocation flexibility.
Read all positive factors
Tata Consultancy Services Limited (TCS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹8.81T
Dividend Yield3.55%
Average Volume (3M)239.35K
Price to Earnings (P/E)15.6
Beta (1Y)0.91
Revenue Growth4.58%
EPS Growth1.36%
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)155.09
Revenue Forecast (FY)₹2.89T
Tata Consultancy Services Limited Business Overview & Revenue Model
Company Description
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. The company operates through Banking, Financial Services and Insurance; Manufacturing; Retail and Consumer Business; Communication, Media and...
How the Company Makes Money
TCS makes money primarily by delivering technology and business services to enterprise clients under commercial contracts. Its main revenue streams typically include: (1) IT services and consulting fees for strategy, architecture, systems integrat...
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 | 668.38B | 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
2611.83
Negative
2884.50
Negative
2963.78
Negative
Market Momentum
-5.54
Negative
55.73
Neutral
83.60
Negative
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 2460.99, above the 50-day MA of 2611.83, and below the 200-day MA of 2963.78, indicating a neutral trend. The MACD of -5.54 indicates Negative momentum. The RSI at 55.73 is Neutral, neither overbought nor oversold. The STOCH value of 83.60 is Negative, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹8.81T | 15.55 | ― | 3.55% | 4.58% | 1.36% | |
70 Outperform | ₹3.23T | 20.22 | ― | 2.86% | 11.18% | -4.28% | |
69 Neutral | ₹4.73T | 14.83 | ― | 2.70% | 9.61% | 11.08% | |
68 Neutral | ₹2.09T | 14.04 | ― | 4.05% | 3.97% | 0.34% | |
67 Neutral | ₹1.28T | 21.36 | ― | 1.08% | 11.31% | 9.00% | |
65 Neutral | ₹1.44T | 22.66 | ― | 2.76% | 7.22% | 12.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Tata Consultancy Services Limited Corporate Events
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...
TCS Deepens Zscaler Partnership With AI-Powered Workspace Experience Platform
Mar 2, 2026
Tata Consultancy Services has expanded its strategic partnership with cloud security provider Zscaler to launch the TCS Workspace Experience Studio engineered with Zscaler Digital Experience, a solution that integrates Zero Trust security, observa...
TCS Appoints Madhav Uppuluri as New General Counsel
Feb 28, 2026
Tata Consultancy Services has announced a leadership transition in its legal function, with veteran lawyer Madhav Uppuluri appointed General Counsel effective April 1, 2026. He will succeed current General Counsel Madhav Anchan, who retires upon s...
TCS Publishes Earnings Call Transcript for December 2025 Quarter
Jan 16, 2026
Tata Consultancy Services Limited has informed the stock exchanges that it has released the transcript of its earnings conference call for the third quarter and nine-month period ended December 31, 2025, following a board meeting held on January 1...
TCS Completes 100% Acquisition of Coastal Cloud Holdings
Jan 14, 2026
Tata Consultancy Services Limited has completed the acquisition of 100% equity interest in Coastal Cloud Holdings, LLC and its subsidiaries, finalizing a transaction previously announced in December 2025. The deal was executed in two steps: an 86%...
TCS Completes 100% Acquisition of Coastal Cloud Holdings
Jan 14, 2026
Tata Consultancy Services Limited has completed the acquisition of 100% equity interest in U.S.-based Coastal Cloud Holdings, LLC and its subsidiaries as of January 14, 2026, through a two-step transaction executed via its subsidiaries ListEngage ...
TCS Publishes Audio Recording of Q3 FY26 Earnings Call for Investors
Jan 12, 2026
Tata Consultancy Services Limited has notified the stock exchanges that it has made available the audio recording of its earnings conference call covering the audited standalone and consolidated financial results for the quarter and nine‑mon...
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.