TCS Share Price Target Gets Multiple Hikes Post Q2 Result Upbeat — Here's What Brokerages Said

The average of 12-month analyst TCS price targets is Rs 3,517, which implies a potential upside of 15% over the previous close.

Analysts had a split view on India's largest IT player TCS. (Image: NDTV Profit)

Tata Consultancy Services Ltd. share price target received hikes from several brokerages after its second-quarter financial results.

Analysts had a split view on India's largest IT player, with some maintaining a cautious or neutral stance, and others more optimistic, focusing on strong deal momentum and bottoming-out trends.

TCS's new Data Center business plans are a major point of discussion, viewed as either an ambitious growth driver or an unrelated distraction. The commentary also highlights the risk to artificial intelligence-led productivity in existing businesses.

Out of the 51 analysts tracking TCS, 33 have a 'buy' rating on the stock, 13 recommend a 'hold', and five suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets is Rs 3,517, which implies a potential upside of 15% over the previous close.

The TCS share price has declined 25% so far this year and 33% from its all-time high in August 2024.

Also Read: TCS Share Price Declines Despite Q2 Results Upbeat

TCS share price down 25% so far in 2025.

TCS share price down 25% so far in 2025.

Read TCS Q2 Results — Five Key Highlights

Also Read: TCS Q2 Results: IT Giant Skips Attrition Rate, Headcount Details In Unusual Move

Analyst Commentary

Citi

  • Maintain 'Sell' but raise TCS price target to Rs 2,800 from Rs 2,790.

  • Inline Q2; Asset intensity to increase medium term.

  • Headcount reduction of 3% QoQ highlights weak outlook.

  • See the risk to AI-led productivity in existing business.

  • Maintain a cautious view.

Jefferies

  • Maintain 'Hold' and reduce TCS price target to Rs 3,100 from Rs 3,230.

  • Weak Q2 growth; Data center to add limited upside.

  • Growth in key markets is yet to recover and 3% QoQ decline in headcount does not bode well.

  • While TCS' intent to invest in growth is promising, its data center foray has limited synergies.

  • Cut earnings estimates by up to 1% and expect 4% EPS growth over FY26.

Avendus Spark

  • Upgrade to 'Buy' from 'Add' and raise TCS price target to Rs 3,700 from Rs 3,690.

  • Better-than-expected Q2, thereby reversing a string of poor performances in the last few quarters.

  • Deal win momentum remains strong and provides visibility on recovery in revenue through the second half of the current year and FY27.

  • This would lead to a reversal in the decline in headcount trend in the coming quarters.

  • Deal extension from BSNL would augment revenue in the near term.

  • Upgrade in the rating is also driven by near-term underperformance, which makes the risk-reward attractive and restricts downside.

Also Read: TCS Q2 Results: Profit Slips 5% On Exceptional Restructuring Charges; Margin Expands, Beats Estimates

Nomura

  • Maintain 'Neutral' with TCS price target at Rs 3,300.

  • Forays into the data center (DC) business; capex of $6-6.5 billion over six years.

  • Management continues to expect FY26 to be better than FY25 for major markets.

  • Significant margin improvement in FY26 is unlikely.

UBS

  • Maintain 'Neutral' raise price target to Rs 3,435 from Rs 3,400.

  • Margin beat and AI investments announced.

  • Management highlighted that clients remain cautious, leading to tight discretionary budgets and project delays.

  • Albeit deferrals are lower than the previous quarter.

CLSA

  • Maintain 'Outperform' and raise TCS price target to Rs 3,559 from Rs 3,545.

  • Beat on all fronts.

  • Ambitious data centre investment plans.

  • Becoming more acquisitive to gain speed.

  • Big, bold and ambitious data centre plans to participate in India AI story.

JPMorgan

  • Maintain 'Overweight' and raise TCS price target to Rs 4,050 from Rs 3,900.

  • Underlying trends are bottoming out.

  • The AI colocation business appears to be an unrelated distraction.

  • Margin improvement was heartening.

  • Underlying cost control has been achieved post-restructuring.

Also Read: AI-Focused Expansion: TCS Acquires Salesforce Partner ListEngage In $73-Million Deal

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WRITTEN BY
Shubhayan Bhattacharya
Shubhayan covers markets and business news at NDTV Profit. He has a keen in... more
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