Tata Consultancy Services (TCS) shares fell by 1.45% to ₹3,017.30 by midday on Thursday, despite the company reporting “better-than-expected” quarterly results that highlighted revenue growth and margin expansion. The stock opened at ₹3,050, down from the previous close of ₹3,061.70, with a traded volume of 63.45 lakh shares valued at ₹1,925.53 crore.
JM Financial has maintained a ‘Buy’ rating with a target price of ₹3,520, citing TCS’s strong operational performance that surpassed expectations. The firm indicated a sequential revenue growth of 0.8% in constant currency terms, alongside a 70-basis point increase in operating margins to 25.2%. TCS secured deal wins worth $10 billion, representing a 16% year-on-year increase, resulting in a healthy book-to-bill ratio of 1.4x. The brokerage also revised its FY26-28 earnings estimates upwards by 2%, attributing this to improved cost management, which included a 3% reduction in headcount.
Axis Securities has similarly issued a ‘Buy’ recommendation, targeting ₹3,460, which values the stock at 22 times the estimated earnings for FY27. The firm underscored TCS’s strategic shift towards becoming an AI-led technology services provider, aided by plans to develop 1GW of AI data center capacity in India with an investment of approximately $7 billion over the next five to seven years.
For the quarter ending September 30, TCS reported revenue of ₹65,799 crore, marking a 3.7% increase quarter-on-quarter, which exceeded market estimates of ₹65,114 crore. However, the net profit of ₹12,121 crore fell below the consensus estimate of ₹12,528 crore. The company also announced a dividend of ₹11 per share, with a record date set for October 15.
Additionally, TCS disclosed its acquisition of US-based ListEngage for up to $72.80 million, aimed at enhancing its Salesforce capabilities and Agentic AI offerings. The company plans to create 5,000 new jobs in the UK over the next three years and will launch an AI Experience Zone in London.
Both JM Financial and Axis Securities remain positive about TCS’s growth outlook, citing a robust deal pipeline, an improved international market perspective, and strategic investments in AI infrastructure, despite facing near-term demand challenges.
Published on October 10, 2025.
