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Tata Consultancy Services Limited
(TCS)
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Rating:76Outperform
Price Target:
₹2,769.00
▲(22.85% Upside)
Action:Reiterated
Date:07/13/26
Score is driven primarily by strong financial quality (high margins, low leverage, strong free cash flow) and supportive valuation (moderate P/E with a high dividend yield). These positives are partially offset by weak technical signals, with price trading below key moving averages and negative MACD indicating bearish momentum.
Positive Factors
High Profitability
Sustained high margins indicate strong pricing power, efficient delivery and scalable operating model. For a services-led firm, persistent operating and net margins this high support reinvestment, funding of platforms, and durable cash returns even if growth moderates.
Negative Factors
Slowing Revenue Growth
A persistent deceleration in top-line expansion limits the ability to leverage fixed costs and sustain very high returns. Slower revenue trends can pressure future margin expansion, reduce scope for investment-led growth, and make results more dependent on pricing or share gains.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high margins indicate strong pricing power, efficient delivery and scalable operating model. For a services-led firm, persistent operating and net margins this high support reinvestment, funding of platforms, and durable cash returns even if growth moderates.
Read all positive factors
Tata Consultancy Services Limited (TCS) vs. iShares MSCI India ETF (INDA)
Market Cap
₹8.56T
Dividend Yield4.69%
Average Volume (3M)239.35K
Price to Earnings (P/E)17.2
Beta (1Y)0.90
Revenue Growth7.70%
EPS Growth1.07%
CountryIN
Employees584,519
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)137.64
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
₹2,262.50Price Target Upside0.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)154.06
Revenue Forecast (FY)₹2.90T
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
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.76T | 2.67T | 2.55T | 2.41T | 2.25T | 1.92T |
| Gross Profit | 1.05T | 825.67B | 1.10T | 1.08T | 1.06T | 914.87B |
| EBITDA | 726.32B | 722.65B | 713.69B | 677.30B | 626.62B | 568.57B |
| Net Income | 497.99B | 492.10B | 485.53B | 459.08B | 421.47B | 383.27B |
Balance Sheet | ||||||
| Total Assets | 1.84T | 1.82T | 1.60T | 1.46T | 1.44T | 1.42T |
| Cash, Cash Equivalents and Short-Term Investments | 496.03B | 466.78B | 408.72B | 435.83B | 455.26B | 445.97B |
| Total Debt | 114.35B | 112.83B | 93.92B | 80.21B | 76.88B | 78.18B |
| Total Liabilities | 735.22B | 737.68B | 638.58B | 551.30B | 524.45B | 516.68B |
| Stockholders Equity | 1.10T | 1.07T | 947.56B | 904.89B | 904.24B | 891.39B |
Cash Flow | ||||||
| Free Cash Flow | 494.19B | 505.06B | 449.71B | 416.64B | 388.65B | 369.54B |
| Operating Cash Flow | 536.81B | 542.85B | 489.08B | 443.38B | 419.65B | 399.49B |
| Investing Cash Flow | -130.13B | -159.34B | -23.18B | 60.26B | 390.00M | -8.97B |
| Financing Cash Flow | -422.22B | -412.35B | -474.38B | -485.36B | -478.78B | -335.81B |
Tata Consultancy Services Limited Technical Analysis
Neutral
2253.90
Price Trends
2201.50
Positive
2290.28
Positive
2622.49
Negative
Market Momentum
71.61
Negative
58.25
Neutral
67.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TCS, the sentiment is Neutral. The current price of 2253.9 is below the 20-day moving average (MA) of 2293.83, above the 50-day MA of 2201.50, and below the 200-day MA of 2622.49, indicating a neutral trend. The MACD of 71.61 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 67.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:TCS.
Tata Consultancy Services Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | ₹3.65T | 20.83 | ― | 4.72% | 12.59% | 2.65% | |
76 Outperform | ₹8.56T | 17.19 | ― | 4.92% | 7.70% | 1.07% | |
75 Outperform | ₹1.29T | 26.78 | ― | 2.80% | 13.87% | 10.72% | |
74 Outperform | ₹4.59T | 14.45 | ― | 4.61% | 5.76% | 12.64% | |
70 Outperform | ₹1.62T | 28.50 | ― | 3.27% | 10.95% | 12.97% | |
67 Neutral | ₹1.82T | 14.54 | ― | 6.21% | 6.40% | -1.86% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:TCS
Tata Consultancy Services Limited
2,453.70
-459.85
-15.78%
IN:HCLTECH
HCL Technologies Limited
1,348.90
-62.63
-4.44%
IN:INFY
Infosys Limited
1,173.10
-199.39
-14.53%
IN:LTIM
LTIMindtree Limited
4,665.00
-259.36
-5.27%
IN:TECHM
Tech Mahindra Limited
1,649.90
222.53
15.59%
IN:WIPRO
Wipro Limited
186.70
-44.18
-19.14%
Tata Consultancy Services Limited Corporate Events
TCS and ABB Deepen Partnership with AI-Led Global Network Deal
Jul 13, 2026
Tata Consultancy Services has expanded its long-standing partnership with ABB through a multi-million, multi-year agreement to transform ABB’s global network operations. Under the new arrangement, TCS will shift from managing infrastructure ...
TCS Strengthens Global Leadership With New Business Heads for BFSI and Travel Verticals
Jul 12, 2026
Tata Consultancy Services has announced changes in its senior management, appointing Ramakrishna Mohan Veeturi as Business Head – BFSI Americas-2 and Arun Pradeep Surendra Mohan as Business Head – Travel, Transport Hospitality, effect...
TCS Publishes Audio of Q1 FY27 Earnings Call for Investors
Jul 9, 2026
Tata Consultancy Services has notified stock exchanges that it has published the audio recording of its earnings conference call for the quarter ended June 30, 2026. The call, held on July 9, 2026 after the board meeting approving the results, is ...
TCS Announces Q1 FY27 Results and Declares Interim Dividend
Jul 9, 2026
Tata Consultancy Services has reported its audited standalone and consolidated interim financial results for the quarter ended June 30, 2026, prepared under Indian Accounting Standards and approved by its board. The results have been reviewed by i...
TCS Schedules Analyst and Institutional Investor Meet for June 12, 2026
Jun 9, 2026
Tata Consultancy Services Limited has notified stock exchanges about its planned interaction with analysts and institutional investors in June 2026. The company will participate in the CLSA India GenAI Access Day via a virtual group investor call ...
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...
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.