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:
DISCLAIMER
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.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
