Over two-thirds of the analysts tracking Tata Consultancy Services Ltd. (TCS), India’s largest IT services company, continue to maintain a “buy” rating on the stock, even as it has corrected 25% over the past
12 months.
TCS’ December-quarter results were largely in line with expectations, prompting mixed reactions from brokerages.
Macquarie has the highest price target on TCS at Rs 4,810, implying an upside potential of 48.2% from Monday’s closing level. The brokerage expects growth acceleration and margin improvement to drive a price-to-earnings re-rating in FY27.
Kotak Institutional Equities reiterated its “buy” call with a price target of Rs 3,675, saying TCS is well placed to remain a core partner for clients across cloud, data and artificial intelligence. While early traction is encouraging, Kotak said sustained execution—especially in AI—will be critical for a meaningful re-rating.
On the other hand, Citi maintained its “sell” rating with a price target of Rs 3,020, citing muted growth in TCS’ international business. The brokerage said this could disappoint investors, as expectations had risen after positive management commentary at the end of Q2. Citi added that equipment and software businesses accounted for nearly half of TCS’ growth in the third quarter.
Nomura stayed “neutral” on the stock with a target of Rs 3,300, noting that meaningful margin expansion in FY27 appears unlikely without stronger growth.
HSBC also retained its “hold” rating with a price target of Rs 3,450, saying the risk-reward looks balanced. While demand commentary was largely positive, the brokerage believes it is unlikely to exceed what the Street has already factored in.
In total, 51 analysts track TCS, with 35 recommending “buy”, 12 suggesting “hold”, and four maintaining a “sell” rating.
Shares of TCS ended 1.1% higher on Monday at Rs 3,243, ahead of the earnings announcement.
