Tata Consultancy Services Limited (TCS) AI Stock Analysis

• Market Cap: ₹11.42T
• Dividend Yield: 3.71%
• Average Volume (3M): 128.39K
• Price to Earnings (P/E): 23.1
• Beta (1Y): 0.92
• Revenue Growth: 4.92%
• EPS Growth: 5.63%
• Country: IN
• Employees: 607,979
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): 35.27
• Shares Outstanding: 3,618,087,400
• 10 Day Avg. Volume: 151,195
• 30 Day Avg. Volume: 128,391
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,726.24
• Price Target Upside: 18.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 68 Neutral
• Price Target: ₹3,273.00 ▲(3.70% Upside)

The overall stock score for TCS is primarily driven by its strong financial performance, indicating minimal financial risk and a stable growth trajectory. However, bearish technical indicators and short-term downside risks temper the overall score, despite a favorable valuation.

Tata Consultancy Services Limited Business Overview & Revenue Model

Company Description

Tata Consultancy Services Limited (TCS) is a leading global IT services, consulting, and business solutions organization. Headquartered in Mumbai, India, TCS is part of the Tata Group, one of India's largest multinational conglomerates. The company operates in various sectors, including banking and financial services, healthcare, telecommunications, retail, and manufacturing, providing a wide range of services such as IT infrastructure services, application development, and business process outsourcing.

How the Company Makes Money

TCS generates revenue primarily through its comprehensive range of IT services and solutions. The company's revenue model is largely based on long-term contracts with clients across various industries, where it provides end-to-end IT services, including consulting, application development, systems integration, and maintenance. TCS also earns from digital transformation projects, which involve modernizing clients' IT systems and processes using emerging technologies like cloud computing, artificial intelligence, and internet of things (IoT). Additionally, TCS has significant revenue streams from business process services and IT infrastructure services. The company's strategic partnerships with leading technology vendors and ongoing investments in innovation and R&D further bolster its earnings by enabling it to offer cutting-edge solutions to its clients.

Tata Consultancy Services Limited Financial Statement Overview

Summary

TCS exhibits exceptional financial health with strong revenue growth, profitability, and efficient cash flow management. The balance sheet is solid with low leverage, and the company is positioned well for future growth with minimal financial risk.

Income Statement

TCS demonstrates a strong income statement with consistent revenue growth and healthy profit margins. The TTM Gross Profit Margin is approximately 41.53%, and the Net Profit Margin is 19.43%. The revenue growth rate has been robust, with a 10.08% increase from the previous year. The EBIT and EBITDA margins stand at 24.94% and 28.54%, respectively, indicating efficient operations and strong earnings before and after depreciation and amortization.

Balance Sheet

The balance sheet of TCS reflects a solid financial position with a low Debt-to-Equity Ratio of 0.10, showcasing prudent financial management. The Return on Equity is approximately 48.60%, highlighting excellent profitability relative to shareholder equity. The Equity Ratio is 58.83%, indicating a strong capital foundation with more than half of the assets funded by equity.

Cash Flow

TCS maintains strong cash flow management with a Free Cash Flow growth rate of 9.60% in the latest TTM. The Operating Cash Flow to Net Income Ratio stands at 1.04, reflecting efficient cash conversion from net income. The Free Cash Flow to Net Income Ratio is 0.96, showing that a significant portion of net income is translated into free cash flow, supporting flexibility and strategic investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.56T	2.55T	2.41T	2.25T	1.92T	1.64T
Gross Profit	1.14T	1.10T	1.08T	1.06T	914.87B	773.02B
EBITDA	722.86B	713.69B	677.30B	626.62B	568.57B	483.66B
Net Income	492.73B	485.53B	459.08B	421.47B	383.27B	324.30B
Balance Sheet
Total Assets	1.66T	1.46T	1.44T	1.42T	1.31T	1.21T
Cash, Cash Equivalents and Short-Term Investments	420.44B	417.33B	439.04B	451.23B	483.01B	383.96B
Total Debt	96.10B	80.21B	76.88B	78.18B	77.95B	81.76B
Total Liabilities	675.29B	551.30B	524.45B	516.68B	436.51B	361.50B
Stockholders Equity	979.10B	904.89B	904.24B	891.39B	864.33B	841.26B
Cash Flow
Free Cash Flow	462.51B	449.71B	416.64B	388.65B	369.54B	356.26B
Operating Cash Flow	504.10B	489.08B	443.38B	419.65B	399.49B	388.02B
Investing Cash Flow	-39.69B	-23.18B	60.26B	390.00M	-8.97B	-81.29B
Financing Cash Flow	-481.59B	-474.38B	-485.36B	-478.78B	-335.81B	-326.34B

Tata Consultancy Services Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3156.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3156.25 is above the 20-day moving average (MA) of 3055.58, below the 50-day MA of 3215.28, and below the 200-day MA of 3617.79, indicating a neutral trend. The MACD of -25.01 indicates Negative momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 76.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	76 Outperform	₹1.53T	33.21		2.13%	7.64%	3.35%
WIPRO	74 Outperform	₹2.64T	19.71		4.36%	0.41%	20.30%
INFY	71 Outperform	₹6.36T	23.28		2.81%	7.03%	2.21%
TCS	68 Neutral	₹11.42T	23.06		3.71%	4.92%	5.63%
HCLTECH	64 Neutral	₹4.05T	24.00		3.22%	6.87%	3.34%
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
TECHM	55 Neutral	₹1.47T	29.74		3.00%	2.88%	79.99%

Tata Consultancy Services Limited Corporate Events

TCS Issues Reminder on Unclaimed Dividends and Share Transfers

Tata Consultancy Services Limited has issued a reminder to shareholders regarding unclaimed dividends from the financial year 2018-19. The company has published notices in multiple newspapers to inform shareholders whose dividends have remained unclaimed for seven or more consecutive years, making their shares liable for transfer to the Investor Education and Protection Fund (IEPF) Authority. This move is in compliance with the Companies Act, 2013, and related rules, ensuring that shareholders are adequately informed and have the opportunity to claim their dividends before the shares are transferred.

TCS Extends Partnership with Weatherford for AI-Driven Transformation

Tata Consultancy Services has announced a five-year extension of its partnership with Weatherford International, a multinational oilfield service company. The renewed agreement will see TCS implement advanced AI-driven solutions to enhance operational efficiencies in finance, supply chains, and human resources, aiming to reduce costs and improve scalability. This collaboration builds on a seven-year relationship, during which TCS has significantly reduced Weatherford’s total cost of ownership. The partnership underscores the strategic importance of integrating AI-driven solutions in the energy sector to drive operational excellence and position Weatherford as a leader in adapting to the evolving industry landscape.

TCS Releases Q1 FY26 Financial Results Recordings

Tata Consultancy Services Limited announced the availability of audio and video recordings of its press conference and earnings conference call for the quarter ended June 30, 2025. The financial results, approved by the Board, provide insights into the company’s performance and strategic direction, potentially impacting stakeholders and market positioning.