Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 16 Oct - TCS scheduled a non-deal roadshow in the USA from October 22-27, 2026.
Source: Bse
Tata Consultancy Services Limited (TCS)
Large CapIT stocks · Large cap · NSE
Tata Consultancy Services Limited (TCS) is a global IT services, consulting, and business solutions organization. It offers a wide range of services including AI-led transformation, cloud modernization, and enterprise systems. The company focuses on creating measurable value for clients through technology and human+AI delivery models.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals17 Oct 2026 · screener
Official result overlay30 Sept 2026 · nse-xbrl
Latest result08 Oct, 03:40 pm IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
69BullishSMA20 -3.5% / mo · RSI overbought · MACD + · sector +19.3pp vs Nifty 500 (3M)
Stock trend: 49
Sector RS: 100
Sector 3M: +13.7% vs Nifty 500 -5.6%
IT FPI tailwindBuilding
Latest FPI flow is positive, but a second consecutive positive fortnight is still required. View sector evidence
Technical chart
TCSD candles · FIT view+3.3%Latest close ₹2529.00 on 2026-10-21
Bar
+1.8%
RSI
76
MACD hist
53.56
52W pos
40%
2026-10-21O ₹2484.00H ₹2533.30L ₹2476.50C ₹2529.00Vol 57.1L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
TCSNifty ITNifty 500
- TCS
- +13.9%
- Nifty 500
- -6.5%
- Nifty IT
- +12.0%
- Vs Nifty 500
- +20.4 pp
Chart stats
21 Oct 2026- From 52W high
- -24.5%
- 52W range position
- 40%
- ATR (14)
- 2.9%
- Volume vs 20D
- 1.05x
- Avg traded value
- ₹1,263 Cr
- 20D price channel
- ₹2,032.4 - ₹2,533.3
₹3,350
₹1,976.8 - ₹3,350
₹74.1
Latest completed session
20-session average
35.3% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management trust is acceptable, price trend supports entry, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED65
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Average32
Revenue +11.2% · PAT +14.9% YoY
Technical
Bullish69
Price trend and sector-relative-strength timing.
Valuation
Legacy model+26.4%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Mixed Trust67
high confidence · 8/36 claims checked
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Sept 2026
Average · 32/100margin compression · Rev +11% YoY · PAT +15% YoY
Filed 08 Oct 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹73,188 Cr | +11.2% | +1.3% |
| EBITDA | ₹18,815 Cr | +4.7% | +1.4% |
| Operating margin | 25.7% | -129 bps | +4 bps |
| PAT | ₹13,934 Cr | +14.9% | +3.8% |
| PAT margin | 19.0% | +60 bps | +47 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 17.29
- P/B
- 7.49
- EV/EBITDA
- 11.27
- Market Cap
- 892330.00Cr
Profitability
- ROE
- 51.80%
- ROCE
- 63.00%
- ROA
- 27.18%
- Dividend Y
- 2.60%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 6.00%
- EPS 3Y
- 8.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 56.41×
- Altman Z
- 9.88
- Book Value
- 329.00
Cash Flow
- FCF Yield
- 4.51%
- FCF Positive Y
- 12/5
- OCF
- 52094.00 Cr
- EPS TTM
- 142.56
Shareholding
- Promoter Hold
- 71.77%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 36%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 73.2k+1.3% vs prev
Net Profit
₹ CrLatest: 13.9k+3.8% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 76. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~3.6% over last month) — short-term momentum negative.
- RSI(14) at 76 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- 25% off 52W high · 28% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
57
RS percentile
Stage 1 Base / Transition
1M return
+18.8%
3M return
+13.9%
6M return
+0.3%
1Y return
-17.3%
RS 1D
+9
RS 20D
+43
Sector rank
#1
Industry rank
#2
Stage evidence
- Price is 10.4% above the 30-week proxy without full trend alignment.
- The 30-week proxy changed -2.0% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price above
200-DMA
price above
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 90.93+3.73%
RS vs Nifty 50091
Valuation & peers
U-Score 65 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 65 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · UNDERVALUEDValuation12/30
Growth9/25
Quality20/20
Balance Sheet12/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
65
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
65/100 · legacy band UNDERVALUED
Positive drivers
- FCF yield is supportive at 4.5%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 26.4%.
Main drags
- Growth is weaker at 9/25; verify the latest quarterly trend.
- Valuation is weaker at 12/30; verify the latest quarterly trend.
- Cash flow is weaker at 7/10; verify the latest quarterly trend.
Sector valuation model
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
17.3
PB
7.5
EV/EBITDA
11.3
ROE
51.8%
ROCE
63.0%
FCF Yield
4.5%
Debt/Equity
0.1
MoS
+26.4%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
65
Previous: 65
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+26.4%
Previous: +28.4%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
68
68
69
69
67
67
67
65
65
65
65
65
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹1,027.28
-146.2% MoS
Growth-justified P/E
24.1
Growth-justified Value
₹3,435.7
+26.4% MoS
PEG
2.01
Comparable companies
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
TECHM
Large
Tech Mahindra Limited
IT Services / Digital
match 162
43
30.7
17.5%
-256%
WATCHLIST
INFY
Large
Infosys Limited
IT Services / Digital
match 139
69
14.2
31.9%
+37%
UNDERVALUED
HCLTECH
Large
HCL Technologies Limited
IT Services / Digital
match 138
59
19.7
23.8%
+15%
FAIR VALUE
WIPRO
Large
Wipro Limited
IT Services / Digital
match 135
55
13.9
15.5%
-25%
FAIR VALUE
SONATSOFTW
Large
Sonata Software Limited
IT Services / Digital
match 130
66
13.8
28.2%
+55%
UNDERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-10-19T07:16:03.761Z
Management commentary snapshot
TCS reports Q2FY27 revenue of ₹73,188 crore, up 2.8% YoY and 0.5% QoQ in constant currency. International markets grew 1.2% QoQ. Order book healthy at US$9.6 billion. Annualized AI revenue crossed $3.1 billion, now over 10% of total revenue. Operating margin stable at 24%.
Despite a selective and uneven demand environment, TCS sustained growth momentum, driven by international markets and core portfolio segments like BFSI, Manufacturing, and Technology & Services. Strong AI revenue growth and a healthy order book indicate future opportunities, though margin expansion remains challenged by ongoing investments and subcon costs.
Growth engines
AI-led Transformation
Annualized AI revenue reached $3.1 billion, crossing 10% of overall revenue, driven by AI-native solutions, AI-led enterprise transformation, and autonomous GBS.
Core Portfolio Growth
BFSI grew 2.5% sequentially in CC, Manufacturing and Technology & Services each grew 3.1% sequentially in CC.
Strategic Partnerships & Acquisitions
Partnership with Porsche and proposed acquisition of MHP strengthen position in AI-powered mobility and engineering. Best Buy GCC engagement highlights ability to build AI-native global capability centers.
New Offerings & Adjacencies
Expanding into data center services, increasing offerings for GCCs and mid-market segments, strengthening presence in ServiceNow, Public Services, and Sovereign Cloud.
Capacity and execution
Talent & Capability Creation
Investing in talent and capability creation at scale on learning and development, as well as on hiring niche talent.
Autonomous Engineering Lab
Launched Autonomous Engineering Lab powered by NVIDIA in Bengaluru.
AI-first Lights-out Factory Lab
Launched an AI-first lights-out factory lab in Pune.
Data Center Services
Planning expansion on data centers once contracts come in; will take about 18 to 24 months before revenues start kicking in.
Tailwinds
AI as Structural Growth Opportunity
AI continues to scale as a structural growth opportunity; annualized AI revenue reached $3.1 billion and crossed 10% of overall revenue.
Client Focus on AI for Business Outcomes
Clients see TCS as a partner who can use AI to enable growth, speed, and efficiency, keen to invest productivity benefits into enterprise transformation.
Vendor Consolidation
AI-powered software engineering and IT ops are helping differentiate and grow market share in traditional services through vendor consolidation.
Cybersecurity Demand
Cybersecurity is a priority globally; focus on cyber resilience and recovery is rising, with opportunities in integrated AI-powered operating models.
Headwinds
Selective and Uneven Demand Environment
The demand environment has not materially changed; discretionary programs without near-term value remain under scrutiny.
Higher Bench and Subcontractor Hiring
Invested in a higher bench and increased hiring of subcontractors to meet near-term skills and delivery requirements, impacting margins.
Project Deferral in India
India revenue declined due to a project deferral, though management expects projects to be reinstated in subsequent quarters.
Acquisition-Related Dilution
The MHP acquisition is likely to impact margins by about 50 basis points depending on the timing of closure and integration.
Risk radar
Demand Environment Volatility
Demand environment remains selective and uneven, with discretionary programs under scrutiny, impacting overall growth.
Margin Pressure from Investments
Prioritizing investments in strategic partnerships, M&A, niche talent, and capacity creation, which can weigh on near-term margins.
AI Deflation Impact
AI brings productivity benefits that can cause deflation, though management notes new opportunities are offsetting this.
Regional Market Volatility
Regional markets, including India, are a bunch of volatile segments with lumpy deliveries, leading to revenue fluctuations.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
QoQ comparison is crucial for assessing sequential momentum in the dynamic IT services market, particularly for international revenue and vertical performance. YoY comparison provides insight into overall growth stability and performance against the previous year, accounting for potential seasonality.
Sector KPIs management disclosed
Revenue (Constant Currency QoQ)
Revenue grew 0.5% sequentially in constant currency.
Revenue (Constant Currency YoY)
Revenue grew 2.8% year-on-year in constant currency.
International Revenue (Constant Currency QoQ)
International revenue grew 1.2% sequentially in constant currency, with all international markets growing.
Order Book (TCV)
TCV for the quarter was US$9.6 billion, excluding the Porsche and Best Buy deals.
Management forward view
AI as Primary Opportunity
Our primary opportunity and focus are on translating the advances in AI into measurable enterprise advantage for our clients.
Long-term Profitable Growth
Consistent with our philosophy to drive long-term profitable growth, we continued to prioritize investments for growth.
Sustainable Growth
Our priority remains clear: convert investments into sustainable growth while preserving the discipline that has consistently underpinned our profitability.
Aspiration to be AI-led Technology Services Company
These priorities support our aspiration to become the world’s leading AI-led technology services company and create sustainable value.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| AI Revenue Growth | $3.1 billion annualized, >10% of total revenue | Continued acceleration in AI revenue and its contribution to overall growth, indicating successful adoption and monetization of AI services. |
| Operating Margin | 24% | Management's ability to inch up margins from current levels, balancing ongoing investments with operating levers and growth efficiencies. |
| North America Growth | Lagging company average (0.4% QoQ CC) | Recovery and acceleration of growth in North America, as management expects it to become healthy soon. |
| Order Book (TCV) | $9.6 billion | Sustained healthy deal wins and their conversion into revenue, reflecting continued client confidence and demand for transformation programs. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
margin outlookdeliveredquantified
TCS expects immediate margin headwinds in FY27 from annual salary increments to be in the range of 150 to 200 basis points.
Timeframe: FY27Direction: negativeConfidence: high
"range of 150 to 200 basis points"
Outcome check: OPM moved from 27.0% to average 26.0% (-1.0 pp).
margin outlookcontradictedquantified
TCS aims to move its operating margins towards 26% on a longer-term basis.
Timeframe: longer-termDirection: positiveConfidence: medium
"move towards 26%, but on a longer-term basis"
Outcome check: OPM moved from 27.0% to average 26.0% (-1.0 pp).
project executionnot yet verifiablequantified
TCS has partnered with OpenAI to build 100 MW of AI capacity, with an option to scale up to 1 GW in the future.
Timeframe: futureDirection: positiveConfidence: high
"build 100 MW capacity, with an option to scale to 1 GW"
demand outlooknot yet verifiable
TCS expects that most known client-specific headwinds are behind them and does not expect major new headwinds going forward.
Timeframe: FY27Direction: positiveConfidence: medium
"most of the headwinds we know probably are behind us"
market share expansionnot yet verifiable
TCS aspires to become the world's largest AI-led technology services company by capitalizing on AI-led renewals, vendor consolidation, and cost optimization.
Timeframe: long-termDirection: positiveConfidence: medium
"aspires to be the World’s largest AI led Tech Services company"
project executionnot yet verifiable
TCS will continue to accelerate the deployment of its five-pillar AI strategy as it moves into FY27.
Timeframe: FY27Direction: positiveConfidence: high
"continue to accelerate deployment of our five-pillar AI strategy"
revenue outlookdelivered
TCS expects a regular Q1 and Q2, with a stronger first half (1H) of the fiscal year as its planning assumption.
Timeframe: 1H FY27Direction: positiveConfidence: medium
"expecting a stronger 1H"
Outcome check: Revenue YoY averaged 13.9% across 1 later quarter(s).
revenue outlookfailed
TCS expects AI-related services to be net accretive to revenue growth in fiscal 2027, helping to arrest degrowth.
Timeframe: FY27Direction: positiveConfidence: medium
"expectation is AI will be net accretive"
Outcome check: Revenue YoY averaged 13.9% across 1 later quarter(s).
Trust Score
67Mixed Trust · high confidenceClaim-tested Trust
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Management has 63% delivered/partly-delivered outcomes on 8 checked claims, with 3 adverse claim outcomes. It ranks around the 52nd percentile of the scored universe and 47th percentile within IT. No major sub-score weakness stands out.
Healthy Trust: 8/36 extracted management claims have outcome checks; 25% were fully delivered and 3 were partially delivered. 3 claim(s) were contradicted or failed. Key concern: 3/8 matched management claims were contradicted or failed.
Computed 21 Oct 2026
management-trust-v1
68 extracted concalls · 8/36 claims matched
Score band
Mixed Trust
Usable, but needs evidence. Treat guidance with a margin of safety.
Relative rank
52nd percentile
overall median 67 · IT: 47th pctile, median 69 · Large: 29th pctile, median 73
Evidence depth
Medium sample
8/36 claims have outcome checks.
Claim delivery
63% delivered or partly delivered
8/36 claims checked · 3 contradicted/failed claims
How to read this Trust Score
Mixed Trust · high confidenceWhat it measures
Reliability of management and financial delivery, using management claims matched with later outcomes.
Confidence
Enough evidence exists to treat this as a stronger reliability read.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
86
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
82
strong · capital discipline
Results
95
strong · quarterly consistency
Trust positives
- ▸Promoter holding is 71.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.5%.
- ▸12 years of positive FCF.
Trust risks
- ▸3/8 matched management claims were contradicted or failed.
Continue researching Tata Consultancy Services Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 10 Oct - Newspaper Advertisement pertaining to loss of share certificate
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 9 Oct - Newspaper Advertisement - Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015
Source: Bse
Announcement
Statement Of The Company Regarding The Announcement By The US Government On The Permanent Labor Certification Program 9 Oct - TCS says US PERM suspension should not affect workforce strategy; plans to hire 15,000 locally over five years.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 1 Oct - TCS announced Best Buy’s India GCC will transition to TCS under a multi-year AI-native capability agreement.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Acquisition 1 Oct - TCS to acquire 100% of BBY Services India LLP for INR 1 lakh; completion expected in 3-4 weeks.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 25 Sep - Newspaper Advertisement-Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 24 Sep - Newspaper advertisement regarding the opening of another special window for re-lodgement of transfer request of physical shares.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 17 Sep - Newspaper Advertisement pertaining to loss of share certificate
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 11 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 25 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 9 Jun
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.