Tata Consultancy Services: Muted growth | Soft bookings | Maintain U-PF

研报英文原文证据摘录

Tata Consultancy Services: Muted growth | Soft bookings | Maintain U-PF

India | Computer Services & IT Consulting

Tata Consultancy Services EquityJulyResearch9, 2026

TARGET | ESTIMATE CHANGEMuted growth | Soft bookings | Maintain U-PF

TCS's Jun-26 qtr revenues missed, though margins were in line with RATING UNDERPERFORM

estimates. Weak growth across key regions, flat YoY bookings and PRICE INR2,058.55^

continued AI-led revenue deflation should keep TCS's growth in check. PRICE TARGET | % TO PT INR1,800 (INR2,275) |

Margins are expected to remain range-bound in absence of strong revenue -13%

52W HIGH-LOW INR3,416.60 - INR1,976.00

growth. We cut our estimates by up to 1% and expect a subdued ~4% EPS

FLOAT (%) | ADV MM (USD) 28.2% | 127.74

CAGR over FY27-29. Maintain U-PF with a reduced TP of Rs1,800, based

MARKET CAP INR7.4T | $77.9B

on 11x PE.

TICKER TCS IN

^Prior trading day's closing price unless otherwise

Results largely in line: TCS' revenues at US$7.6bn, up 0.4% QoQcc, were tad lower to our noted.

estimates. EBIT margins at 24%, down 130bps QoQ, were in line with estimates. Reported

profits at Rs132bn, up 3% YoY, missed estimates; however, normalized for the settlement of

legal claim of Rs6.7bn, profits were up 15% YoY and beat estimates due to forex gains of FY (Mar) CHANGE TO JEFe JEF vs CONS

Rs5.9bn. 2027 2028 2027 2028

REV NA NA NA NA

Subdued revenue growth: TCS' 0.4% QoQcc revenue growth was primarily driven by India ops EPS <1% <-1% NM -2%

(+7.6% QoQcc), excluding which revenues were flat QoQ (1.9% YoYcc). Growth across its key

markets was subdued, with North America declining by 0.4% QoQcc, affected by airlines and 2027 (INR) Q1 Q2 Q3 Q4 FY

non-essential retail. Among verticals, while BFSI saw decent growth (+1.6% QoQcc), weaker EPS -- -- -- -- 154.60