TCS - Tata Consultancy Services Ltd. Share Price
IT - Software
Valuation | |
|---|---|
| Market Cap | 11.35 LCr |
| Price/Earnings (Trailing) | 23.03 |
| Price/Sales (Trailing) | 4.35 |
| EV/EBITDA | 15.58 |
| Price/Free Cashflow | 24.67 |
| MarketCap/EBT | 17.17 |
| Enterprise Value | 11.26 LCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.61 LCr |
| Rev. Growth (Yr) | 2.4% |
| Earnings (TTM) | 49.51 kCr |
| Earnings Growth (Yr) | 5.9% |
Profitability | |
|---|---|
| Operating Margin | 25% |
| EBT Margin | 25% |
| Return on Equity | 51.7% |
| Return on Assets | 31.02% |
| Free Cashflow Yield | 4.05% |
Price to Sales Ratio
Revenue (Last 12 mths)
Net Income (Last 12 mths)
Growth & Returns | |
|---|---|
| Price Change 1W | -1.7% |
| Price Change 1M | -9% |
| Price Change 6M | -24.5% |
| Price Change 1Y | -27.4% |
| 3Y Cumulative Return | 0.20% |
| 5Y Cumulative Return | 7.8% |
| 7Y Cumulative Return | 7.1% |
| 10Y Cumulative Return | 9.6% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -2.32 kCr |
| Cash Flow from Operations (TTM) | 48.91 kCr |
| Cash Flow from Financing (TTM) | -47.44 kCr |
| Cash & Equivalents | 8.34 kCr |
| Free Cash Flow (TTM) | 45.99 kCr |
| Free Cash Flow/Share (TTM) | 127.11 |
Balance Sheet | |
|---|---|
| Total Assets | 1.6 LCr |
| Total Liabilities | 63.86 kCr |
| Shareholder Equity | 95.77 kCr |
| Current Assets | 1.23 LCr |
| Current Liabilities | 53 kCr |
| Net PPE | 10.98 kCr |
| Inventory | 21 Cr |
| Goodwill | 1.86 kCr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.00 |
| Debt/Equity | 0.00 |
| Interest Coverage | 79.78 |
| Interest/Cashflow Ops | 60.79 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 127 |
| Dividend Yield | 4.05% |
| Shares Dilution (1Y) | 0.00% |
| Shares Dilution (3Y) | -1.1% |
Risk & Volatility | |
|---|---|
| Max Drawdown | -9.5% |
| Drawdown Prob. (30d, 5Y) | 0.00% |
| Risk Level (5Y) | 24.9% |
Latest News and Updates from Tata Consultancy Services
Updated Jul 26, 2025
The Bad News
TCS shares traded lower at Rs 3,161.40, down 0.56%, reflecting bearish market sentiment.
Despite solid financial results, TCS's stock saw declines of 1.03% and 0.56% in recent trading sessions.
A recent analysis indicates a bearish sentiment towards the stock, despite its strong financial performance.
The Good News
TCS reported a revenue increase to Rs 63,437 Crore and a net profit rise to Rs 12,819 Crore for the quarter ending June 2025.
Over five years, TCS's revenue grew from Rs 164,177 Crore in 2021 to Rs 255,324 Crore in 2025.
The company has consistently increased its earnings per share (EPS) and announced dividends throughout 2025.
Updates from Tata Consultancy Services
Newspaper Publication • 19 Jul 2025 Newspaper Advertisement regarding the opening of special window for re-lodgement of transfer requests of physical shares |
General • 17 Jul 2025 Press Release |
General • 15 Jul 2025 Press Release |
Earnings Call Transcript • 14 Jul 2025 Earnings Conference Call Transcript for the quarter ending June 30, 2025 |
Earnings Call Transcript • 14 Jul 2025 Earnings Conference Call Transcript for the quarter ending June 30, 2025 |
Newspaper Publication • 12 Jul 2025 Copy of newspaper publication for financial results for quarter ended June 30, 2025. |
Newspaper Publication • 11 Jul 2025 Newspaper Advertisement - Dividend |
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Summary of Latest Earnings Report from Tata Consultancy Services
Summary of Tata Consultancy Services's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated:
Management Outlook:
TCS projects cautious optimism for FY26, anticipating improved performance driven by strong deal momentum (record Q4 TCV of $12.2 billion) and strategic investments in AI, cloud, and talent. Despite near-term macroeconomic uncertainties (delayed decision-making, discretionary spend pressure), management expects medium-term growth from technology modernization, vendor consolidation, and AI/GenAI adoption. International markets are prioritized, with expectations of FY26 outperforming FY25.
Key Points:
- Financial Performance: FY25 revenue grew 4.2% (CC), operating margin at 24.3%, net margin 19%. Q4 revenue up 2.5% (CC).
- Demand Drivers:
- BFSI: Focus on modernization, data/AI, cloud adoption.
- Energy/Utilities: Strong growth via AI, analytics, and cloud investments.
- Regional Markets: Robust pipeline (22.5% growth in Q4) driven by public sector digitization.
- Consumer/Manufacturing: Softness due to macroeconomic headwinds.
- Technology Focus:
- AI/GenAI: Rising adoption in IT/business use cases (e.g., code automation, customer experience).
- Cloud: Sovereign cloud demand, legacy modernization, and FinOps.
- Operational Strategy:
- Talent development: 56M learning hours, 5.2M competencies acquired in FY25.
- Margins: Targeting 26% via productivity, pyramid optimization, and operating leverage.
- Risks: Macro uncertainty, geopolitical shifts, and currency fluctuations may impact near-term growth.
Outlook hinges on execution of large deals, AI-driven efficiency, and resolving global economic volatility.
Last updated:
Question 1:
Yogesh Aggarwal (HSBC Securities): "Samir at the media conference, you mentioned some tactical investments, which is why the margins were a bit weak this quarter. Can you elaborate a little bit?"
Answer: Samir clarified that tactical interventions (e.g., promotions effective January 1) caused a 100-basis-point margin impact. These were part of planned annual cycles, not unplanned expenses.
Question 2:
Yogesh Aggarwal (HSBC Securities): "Krithi, it's hard to be optimistic... do you think there are any new areas which could open up for the industry?"
Answer: Krithi highlighted AI/GenAI and tech modernization (e.g., cloud adoption, legacy upgrades) as growth drivers, driven by productivity gains and reduced tech debt post-macro stabilization.
Question 3:
Sudheer Guntupalli (Kotak Mahindra AMC): "What is giving confidence that FY26 will be better than FY25 despite macro deterioration?"
Answer: Krithi cited strong recent TCV (total contract value) performance and expectations of short-lived uncertainty, with clients resuming tech investments post-clarity.
Question 4:
Ravi Menon (Macquarie): "Were promotions delayed, conflicting with wage hike deferrals?"
Answer: Milind confirmed promotions were part of FY25's planned cycle, while wage hikes for FY26 will be decided post-environmental clarity.
Question 5:
Ankur Rudra (JPMorgan): "Is FY26 growth expectation for international business only?"
Answer: Krithi clarified FY26 optimism applies to international markets but noted efforts to replace domestic headwinds (e.g., BSNL revenue loss).
Question 6:
Apurva Prasad (Franklin Templeton): "How is AI for IT vs. AI for Business impacting revenues?"
Answer: Krithi explained AI for IT drives productivity gains shared with clients (market share gains), while AI for Business represents net-new opportunities funded by cost savings.
Question 7:
Vibhor Singhal (Nuvama Equities): "Is uncertainty sector-specific or broad-based?"
Answer: Krithi noted consumer sectors (retail, auto) faced greater impact, while BFSI remained stable. Hi-tech saw softness in professional services, not core tech.
Question 8:
Gaurav Rateria (Morgan Stanley): "How is talent strategy evolving for AI?"
Answer: Milind highlighted increased digital hires (40% trainees vs. 17% last year) and lateral hires with AI/GenAI skills, aligning with demand.
Question 9:
Kumar Rakesh (BNP Paribas): "Are recent TCV trends sustainable?"
Answer: Krithi attributed strong TCV to faster deal closures in H2 FY25, with a steady pipeline but cautioned quarterly volatility due to decision timelines.
Question 10:
Kumar Rakesh (BNP Paribas): "Are margin headwinds recurring?"
Answer: Samir stated the 60-basis-point impact (marketing, CSR) was routine, not one-time. Promotions followed FY24's pattern, with no material variance.
Revenue Breakdown
Analysis of Tata Consultancy Services's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Jun 30, 2025
| Description | Share | Value |
|---|---|---|
| Banking, Financial Services and Insurance | 39.0% | 24.7 kCr |
| Consumer Business | 16.0% | 10.2 kCr |
| Communication, Media and Technology | 14.9% | 9.4 kCr |
| Life Sciences and Healthcare | 10.1% | 6.4 kCr |
| Manufacturing | 10.1% | 6.4 kCr |
| Others | 9.9% | 6.3 kCr |
| Total | 63.4 kCr |
Share Holdings
Understand Tata Consultancy Services ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Holding Pattern
Share Holding Details
| Shareholder Name | Holding % |
|---|---|
| TATA SONS PRIVATE LIMITED | 71.74% |
| LIC of India | 4.86% |
| Sbi Nifty 50 Etf | 1.17% |
| TATA INVESTMENT CORPORATION LIMITED | 0.03% |
| Tata Communications Lanka Limited | 0% |
| Tata Communications Middle East Technology Services L.L.C | 0% |
| Tata Communications Services (International) Pte. Limited | 0% |
| Tata Communications SVCS Pte Ltd | 0% |
| Tata Communications Transformation Services (Hungary) Kft. | 0% |
| Tata Communications Transformation Services (US) Inc | 0% |
| Tata Communications Transformation Services Pte Limited | 0% |
| Tata Communications Transformation Services South Africa (Pty) Ltd | 0% |
| Tata Consulting Engineers USA, LLC (Formerly CDI Engineering Solutions, LLC) | 0% |
| Tata Electronics America Inc | 0% |
| Tata Electronics Singapore Pte. Ltd | 0% |
| Tata Electronics Taiwan Co. Ltd | 0% |
| Tata Engineering Consultants Saudi Arabia Company | 0% |
| Tata Holdings Mocambique Limitada | 0% |
| Tata Incorporated | 0% |
| Tata International AG, Zug | 0% |
Overall Distribution
Distribution across major stakeholders
Ownership Distribution
Distribution across major institutional holders
Is Tata Consultancy Services Better than it's peers?
Detailed comparison of Tata Consultancy Services against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| INFY | Infosys | 6.3 LCr | 1.7 LCr | -6.10% | -16.90% | 23.03 | 3.71 | - | - |
| HCLTECH | HCL Tech | 4.04 LCr | 1.21 LCr | -13.20% | -6.10% | 23.79 | 3.34 | - | - |
| WIPRO | Wipro | 2.72 LCr | 93.48 kCr | -3.80% | +2.30% | 20.14 | 2.91 | - | - |
| LTIM | LTIMindtree | 1.51 LCr | 30.49 kCr | -6.20% | -9.00% | 42.11 | 4.95 | - | - |
| TECHM | Tech Mahindra | 1.43 LCr | 54.26 kCr | -14.30% | -4.40% | 28.52 | 2.64 | - | - |
Sector Comparison: TCS vs IT - Software
Comprehensive comparison against sector averages
Comparative Metrics
TCS metrics compared to IT
| Category | TCS | IT |
|---|---|---|
| PE | 23.03 | 24.11 |
| PS | 4.35 | 3.74 |
| Growth | 5.1 % | 5.5 % |
Performance Comparison
TCS vs IT (2021 - 2025)
- 1. TCS is among the Top 3 Computers - Software & Consulting companies by market cap.
- 2. The company holds a market share of 31.6% in Computers - Software & Consulting.
- 3. The company is growing at an average growth rate of other Computers - Software & Consulting companies.
Income Statement for Tata Consultancy Services
Balance Sheet for Tata Consultancy Services
Cash Flow for Tata Consultancy Services
What does Tata Consultancy Services Ltd. do?
Tata Consultancy Services (TCS) is a prominent Computers - Software & Consulting company with a stock ticker of TCS. With a market capitalization of Rs. 1,245,889.3 Crores, TCS is recognized for delivering a broad range of information technology (IT) and IT-enabled services across various global regions, including the Americas, Europe, and India.
The company operates through several segments, such as:
- Banking, Financial Services and Insurance
- Manufacturing
- Consumer Business
- Communication, Media and Technology
- Life Sciences and Healthcare
- Others
TCS offers a diverse suite of products and solutions, including:
- TCS ADD: Technology platforms for clinical research and drug development
- TCS BaNCS: Financial services platform
- TCS BFSI Platforms: Cloud-native services for financial institutions
- TCS CHROMA: Cloud-based workforce management
- TCS ERP on Cloud: Hosted ERP applications
- TCS HOBS: Catalog-centric platform for product personalization
- Ignio: Autonomous enterprise software
- TCS Intelligent Urban Exchange: Smart city solutions
- TCS OmniStore and TCS Optumera: Retail commerce and strategic intelligence platforms, respectively
- Quartz: A blockchain solution
In addition to these platforms, Tata Consultancy Services provides services in areas like cloud computing, consulting, cybersecurity, data and analytics, and digital engineering, serving industries such as banking, healthcare, manufacturing, retail, and more.
Founded in 1968 and headquartered in Mumbai, India, TCS is a subsidiary of Tata Sons Private Limited. The company has reported impressive financial performance, with a trailing 12 months revenue of Rs. 256,173 Crores and a profit of Rs. 49,006 crores over the last four quarters. TCS has also demonstrated significant revenue growth, achieving 35.7% growth over the past three years.
In terms of shareholder value, TCS maintains a dividend yield of 4.39% annually, returning Rs. 151 per share in the last 12 months, further solidifying its standing as a profitable entity.