During Q1 FY26, global conflicts, economic uncertainty, and supply chain bottlenecks led to higher cost pressure, project deferrals, delay in decision making, rescoping of work which ultimately led to lower revenue conversion. With pricing being largely stable and pent-up demand to follow once trade deals are announced between the US and its major trading partners, TCS believes that FY26 international growth to be better than FY25.
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Deven Choksey Report
We have revised our FY26E/FY27E EPS estimate of Tata Consultancy Services Ltd. by -1.7%/-3.6% respectively, led by lower revenue conversion on the back of reduced demand.
We value TCS at 25.0x Jun’27 EPS (~10-year average NTM P/E), implying a target price of Rs 4,067.
TCS is currently trading at a 1-year fwd. P/E of 23.7x, below its medium and long-term averages across tenures including one-year, three-year, five-year, seven-year and 10-year average NTM P/E.
We reiterate our “Buy” rating on the stock.
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This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
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