TCS Share Price Declines Despite Q2 Results Upbeat
TCS received share price target hikes from multiple brokerages.
Tata Consultancy Services Ltd. shares fell during early trade on Friday, after its second-quarter financial results. The management highlighted that clients remain cautious, leading to tight discretionary budgets and project delays.
Consolidated net profit dropped of 5.4% sequentially to Rs 12,075 crore, due to exceptional restructuring expenses. Revenue from operations rose 3.7% to Rs 65,799 crore.
On the operating front, the core profitability or EBIT (earnings before interest and taxes) of the IT major rose 7% to Rs 16,565 crore compared to Rs 15,514 crore on a sequential basis. EBIT margin expanded 25.2%.
Total contract value (TCV) of deals in the Sept. quarter stood at $10 billion, compared to $9.4 billion in the July quarter.
TCS announced a second interim dividend of Rs 11 per equity share for FY26. The company will distribute nearly Rs 3,979 crore to shareholders.
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. The stock received share price target hikes from multiple brokerages.
TCS Share Price Movement
TCS share price fell 1.5% intraday to Rs 3,014 apiece.
TCS share price fell 1.5% intraday to Rs 3,014 apiece. The benchmark Nifty 50 was up 0.1%.
The total traded turnover was Rs 371 crore on the NSE. The relative strength index was at 61.
The TCS share price has declined 25% so far this year and 33% from its all-time high in August 2024.
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.
