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 provides technology services across diverse industries and geographies, managing growth, competition, and talent. The company serves a broad client base, focusing on large-scale contracts and emerging technologies.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
high confidence · 8/36 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 22/100margin compression · Rev +14% YoY · PAT +5% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹72,275 Cr | +13.9% | +2.2% |
| EBITDA | ₹18,556 Cr | +10.0% | -3.7% |
| Operating margin | 26.0% | -100 bps | -100 bps |
| PAT | ₹13,420 Cr | +4.7% | -2.6% |
| PAT margin | 18.6% | -164 bps | -93 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
TCS reported Q1 FY27 INR revenue up 2.2% QoQ and 13.9% YoY, with USD revenue flat QoQ and up 2.7% YoY. Constant currency revenue grew 0.4% QoQ and 3.2% YoY. Operating margin declined to 24.0%, while net margin was 19.2%. Order book stood at $9.5 Bn.
Q1 FY27 results show muted sequential constant currency revenue growth and a notable decline in operating margin. While the order book remains strong, the flat USD revenue QoQ and increased employee costs as a percentage of revenue indicate potential pressure on near-term profitability and growth momentum.
Revenue by Vertical (Q1 FY27)
Latest issuer-disclosed distribution across 8 reported categories.
Strong Order Book
INTACTOrder book TCV at $9.5 Bn, with North America at $4.7 Bn and BFSI at $2.5 Bn.
Client Base Expansion
INTACTClients $10M+ up by 5, $5M+ up by 8, and $1M+ up by 4 QoQ.
India Market Growth
INTACTIndia market grew 7.6% QoQ and 22.9% YoY in constant currency.
BFSI Vertical Performance
INTACTBFSI vertical grew 1.6% QoQ CC and 2.4% YoY CC, contributing 32.1% of revenue.
Talent Development
INTACT14.6 Mn Learning Hrs (FY27 YTD) and 1.3 Mn competencies acquired (FY27 YTD).
AI/ML Proficiency
INTACT312K+ associates with higher proficiency in AI/ML.
Strong Demand in India
INTACTIndia market showed robust growth of 7.6% QoQ and 22.9% YoY in constant currency.
BFSI Sector Resilience
INTACTBFSI vertical, the largest contributor, grew 1.6% QoQ in constant currency.
Muted Overall Growth
UNDER_STRESSConstant currency revenue growth was only 0.4% QoQ and 3.2% YoY.
Margin Contraction
UNDER_STRESSOperating margin declined to 24.0% from 25.3% QoQ, and Net margin to 19.2% from 19.4% QoQ.
Weak Consumer Business
UNDER_STRESSConsumer Business vertical declined 4.0% QoQ in constant currency.
North America Slowdown
UNDER_STRESSNorth America, the largest market, declined 0.4% QoQ in constant currency.
Intense Competition
Intense competition among global IT services companies.
Profitability Factors
Various factors which may affect our profitability, such as wage increases or an appreciating Rupee.
Talent Attraction & Retention
Our ability to attract and retain highly skilled professionals.
Client Concentration
Risk of client concentration.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
QoQ comparison is crucial for assessing sequential momentum in IT services demand, utilization, and project execution. YoY comparison provides insight into overall annual growth trends and market share changes, especially for a large, established player like TCS.
Constant Currency Revenue Growth QoQ
UNDER_STRESSConstant currency revenue up 0.4% QoQ
Constant Currency Revenue Growth YoY
UNDER_STRESSConstant currency revenue up 3.2% YoY
Operating Margin
UNDER_STRESSOperating Margin at 24.0% (vs 25.3% QoQ)
Net Margin
UNDER_STRESSNet Margin at 19.2% (vs 19.4% QoQ)
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Constant Currency QoQ Growth | 0.4% | Acceleration in sequential constant currency revenue growth across key markets. |
| Operating Margin | 24.0% | Stabilization and recovery of operating margins towards previous levels. |
| Order Book TCV | $9.5 Bn | Sustained strong deal wins, especially in North America and BFSI, to support future growth. |
| North America CC Growth | -0.4% QoQ | Reversal of the negative sequential growth trend in the largest market. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
TCS expects immediate margin headwinds in FY27 from annual salary increments to be in the range of 150 to 200 basis points.
"range of 150 to 200 basis points"
Outcome check: OPM moved from 27.0% to average 26.0% (-1.0 pp).
TCS aims to move its operating margins towards 26% on a longer-term basis.
"move towards 26%, but on a longer-term basis"
Outcome check: OPM moved from 27.0% to average 26.0% (-1.0 pp).
TCS has partnered with OpenAI to build 100 MW of AI capacity, with an option to scale up to 1 GW in the future.
"build 100 MW capacity, with an option to scale to 1 GW"
TCS expects that most known client-specific headwinds are behind them and does not expect major new headwinds going forward.
"most of the headwinds we know probably are behind us"
TCS aspires to become the world's largest AI-led technology services company by capitalizing on AI-led renewals, vendor consolidation, and cost optimization.
"aspires to be the World’s largest AI led Tech Services company"
TCS will continue to accelerate the deployment of its five-pillar AI strategy as it moves into FY27.
"continue to accelerate deployment of our five-pillar AI strategy"
TCS expects a regular Q1 and Q2, with a stronger first half (1H) of the fiscal year as its planning assumption.
"expecting a stronger 1H"
Outcome check: Revenue YoY averaged 13.9% across 1 later quarter(s).
TCS expects AI-related services to be net accretive to revenue growth in fiscal 2027, helping to arrest degrowth.
"expectation is AI will be net accretive"
Outcome check: Revenue YoY averaged 13.9% across 1 later quarter(s).
Trend score and candlestick chart
48NeutralMACD −
Technical chart
TCSdaily · 1Y · AUTO-10.7%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 48.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 31% off 52W high · 17% 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.
Relative Strength & Trend Stage
- Price is 3.0% below the 30-week proxy.
- The 50-DMA is below the 30-week proxy and its slope is falling -4.4%.
Valuation & score drivers
U-Score 66 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 66 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.8%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 30.5%.
Main drags
- Valuation is weaker at 12/30; verify the latest quarterly trend.
- Growth is weaker at 11/25; verify the latest quarterly trend.
- Cash flow is weaker at 7/10; verify the latest quarterly trend.
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.
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.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 49th percentile of the scored universe and 45th 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.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · IT: 45th pctile, median 69 · Large: 26th pctile, median 73
8/36 claims have outcome checks.
8/36 claims checked · 3 contradicted/failed claims
How to read this Trust Score
Mixed Trust · high confidenceRead 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.
Trust positives
- ▸Promoter holding is 71.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.8%.
- ▸12 years of positive FCF.
Trust risks
- ▸3/8 matched management claims were contradicted or failed.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 15.50
- P/B
- 7.78
- EV/EBITDA
- 10.63
- Market Cap
- 833607.00Cr
Profitability
- ROE
- 51.80%
- ROCE
- 63.00%
- ROA
- 27.63%
- Dividend Y
- 2.78%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 6.00%
- EPS 3Y
- 8.00%
Balance Sheet
- Debt/Equity
- 0.11
- Interest Coverage
- 56.77×
- Altman Z
- 9.91
- Book Value
- 296.00
Cash Flow
- FCF Yield
- 4.82%
- FCF Positive Y
- 12/5
- OCF
- 52094.00 Cr
- EPS TTM
- 137.64
Shareholding
- Promoter Hold
- 71.77%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 24%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
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.