TCS Shares Can Zoom 21% Says Yes Securities Post Q1 Revenue, Margin Beat; 1GW Data Center Foray

Yes Securities maintains 'Buy' on TCS shares post Q1 results, says deal conversion led to revenue growth; currency tailwinds help margins.

TCS’ disciplined execution, strong order book, and full-service offerings will help it sail through tough demand environment.

(Photo source: TCS)

Coupled with its deep enterprise relationships, AI-first delivery model, and disciplined capital allocation, the brokerage sees TCS evolving into a more diversified, infrastructure-plusservices technology leader with sustained earnings compounding potential.

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Yes Securities Report

We remain positive on Tata Consultancy Services Ltd. over the next 12 months, driven by broad-based recovery in revenue growth, accelerating deal conversions, and resilient margins despite wage and investment headwinds.

The company’s disciplined execution, strong order book, and full-service offerings will help it sail through tough demand environment. We expect H2 FY26 (0.5% YoY in CC) to be better than H1 (-3.2% YoY in CC) based on better conversion and increasing transformation deals in the pipeline along with margin tailwinds (24.5% in FY26 vs 24.3% in FY25) from the ongoing restructuring despite ramp-up in PO from BSNL.

Over a three-year horizon, we remain constructive on TCS as it leverages its proven strengths in large-scale project execution, systems integration, and ecosystem partnerships to expand into adjacencies like data centres and sovereign cloud.

The 1GW data-centre foray, built in collaboration with hyperscalers and governments, underscores TCS’s intent to capture the infrastructure layer of the AI economy while reinforcing long-term annuity revenues.

Coupled with its deep enterprise relationships, AI-first delivery model, and disciplined capital allocation, we see TCS evolving into a more diversified, infrastructure-plusservices technology leader with sustained earnings compounding potential.

Click on the attachment to read the full report:

Yes Securities Tata Consultancy Services_Q2FY26 Results Review.pdf
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Also Read: TCS Share Price Target Gets Multiple Hikes Post Q2 Result Upbeat — Here's What Brokerages Said

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