TCS At Inflection Point As AI Becomes Core Engine, Says IDBI Capital After Q3 Results — Check Target Price

TCS' revenue grew modestly (0.8% CC QoQ) amid caution, yet margins held firm at 25.2%, backed by productivity gains precisely counterbalanced wage hikes and strategic AI investments, signaling disciplined execution..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. .IDBI Capital Report.IDBI Capital has reiterated its Buy rating on Tata Consultancy Services Ltd. with a target price of Rs 3,733, valuing the stock at 24.4x FY27E EPS. The brokerage highlights TCS’s operational resilience amid macroeconomic headwinds, supported by disciplined execution and strategic AI positioning.Revenue witnessed a muted 0.8% constant currency QoQ, topline grew 4.9% YoY reflecting cautious global spending but signaling recovery momentum in consumer, EN&U, and life sciences verticals. Operating margin stood at 25.2% (ex-one-offs), aided by productivity gains offset by wage hikes and brand investments, underscoring management’s focus on long-term competitiveness..AI revenue surged to $1.8 billion annualized, up 17.3% QoQ, driven by rapid-build projects delivering tangible business value. Strong cash conversion (130% of net income) and $9.3bn TCV signings, including North America mega-deals, reinforce confidence in CY2026 outlook.Strategic partnerships and workforce upskilling position TCS as an AI-enabled transformation leader..Click on the attachment to read the full report:.TCS Q3 Review: Brokerages Split As Inline Quarter Meets Tepid Global Demand, FY27 Hope Intact.DISCLAIMERThis 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..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TCS At Inflection Point As AI Becomes Core Engine, Says IDBI Capital After Q3 Results — Check Target Price

Strategic partnerships and workforce upskilling position TCS as an AI-enabled transformation leader.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP