Tata Consultancy Services (TCS) posted a solid Q3 FY26 earnings report that beat revenue expectations and kept its profit margin stable.
For the first nine months of FY26, TCS saw revenue, EBIT and adjusted profit increase by 2.9%, 5.2% and 10.1% respectively compared with the same period last year.
Analysts expect the next quarter (4Q FY26) to deliver revenue growth of about 6.8% and profit growth around 11% year‑on‑year. The company’s new contract backlog (TCV) was $9.3 billion, an 8.8% dip from last year, while its book‑to‑bill ratio stayed at 1.2x.
Motilal Oswal maintains a BUY rating on TCS with a target price of ₹4,400, implying roughly a 36% upside from the current market level.
Strong revenue, stable margins and a healthy backlog suggest TCS remains a robust pick for investors seeking steady growth in the tech services space.
Remember, this is just an overview, not a guarantee. Do your own research or consult a financial adviser before making any investment decisions.
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Join TelegramTata Consultancy Services (TCS) is speeding up its AI push, and analysts see steady profit growth over the next few years. Why TCS AI is Expanding Quickly The company’s AI services revenue is rising fast, driven by a culture that puts AI at the core of how it delivers projects. Big clients are adopting AI solutions in larger numbers, and TCS is reshaping its workforce to support these new tools. Key Drivers Behind the Growth AI-first delivery culture: Projects are built around AI from the start. Large‑client adoption: More big customers are buying AI services. Workforce transformation: Employees are being upskilled for AI work. Strong ecosystem partnerships: Includes the HyperVault AI‑led data‑centre joint venture with TPG. Financial Outlook Analysts expect the following compound annual growth rates (CAGR) from fiscal year 2025 to 2028: Revenue: 7.2% EBIT: 9.6% PAT: 8.9% They maintain a BUY rating with a target price of INR 3,950. This implies a price‑to‑earnings multiple of about 24× on the average FY27‑FY28 earnings per share (EPS) of roughly INR 164.6. Investor Takeaway The steady rise in AI‑related revenue and profit margins suggests TCS could enjoy a competitive edge for years to come. If you own TCS shares or are thinking about buying, the analyst’s outlook points to modest but consistent upside. Remember, this is a perspective, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.
HCL Technologies posted a solid Q3 FY26 performance, with revenue and earnings both beating expectations. Quarterly performance Revenue reached $3.8 billion, up 4.2% quarter‑on‑quarter on a constant‑currency basis, higher than the 2.3% growth analysts expected. EBIT margin improved to 18.6%, above the 18.1% forecast. Adjusted profit after tax (PAT) rose 13.3% quarter‑on‑quarter and 4.5% year‑on‑year to INR 48 billion. New contracts signed this quarter have a total contract value of $3 billion, a 43.5% increase from the previous year. Guidance for FY26 The company now expects full‑year revenue growth of 4%‑4.5% year‑on‑year in constant currency, slightly tighter than the earlier 3%‑5% range. Services revenue is projected to grow 4.75%‑5.25%. EBIT margin guidance remains at 17%‑18%. Analyst outlook Motilal Oswal expects revenue, EBIT and adjusted PAT to grow 12.3%, 7.4% and 9.0% respectively in Q4 FY26. The firm labels HCL Technologies as the fastest‑growing large‑cap IT player and keeps a BUY rating. Target price is set at INR 2,200, implying about a 32% upside from current levels. What this means for investors Strong quarterly results, a robust pipeline of new deals, and a clear growth outlook suggest that HCL Technologies could continue to outperform in a mixed‑demand environment. Remember, this is just an analysis, not a prediction. Do your own research or consult a certified advisor before making any investment decisions.
On Tuesday, L&T’s share price fell more than 4% after news that Kuwait might pull the plug on oil project tenders worth about $8.7 billion. Why L&T Shares Fell Reports say Kuwait is reviewing several oil contracts because the bids came in higher than expected, putting pressure on its budget. If the tenders are cancelled, it could affect companies that were bidding, including L&T, which had been the lowest bidder for projects worth over $4.5 billion. L&T’s Response The company said the projects mentioned in the media reports are not part of its order book. It also added that it cannot comment on the status of client tenders or commercial decisions. Order Book Outlook Despite the Kuwait news, L&T remains confident about its full‑year FY26 guidance. Management highlighted a strong pipeline of about ₹3.57 trillion in energy projects, mainly international hydrocarbon work (about 93% overseas). Other prospects include carbon‑lite solutions and clean‑energy projects. Hydrocarbon prospects: ~₹2.93 trillion CarbonLite Solutions: ~₹0.46 trillion Clean‑energy (mostly gas‑to‑power): ~₹0.18 trillion International orders made up roughly 49% of the order book as of September 2025. New Bridge Order Boosts Outlook Earlier on the same day, L&T announced that its transportation arm won a major contract worth between ₹1,000 crore and ₹2,500 crore. The project is an arterial cable‑stayed bridge over the Muri Ganga River in West Bengal, spanning 3.2 km with advanced traffic‑management and monitoring systems. The bridge will give the two‑lakh‑plus residents of Sagar Island year‑round road access, improve healthcare reach, and support pilgrimage traffic during the Ganga Sagar Mela. Recent Stock Performance L&T’s shares have slid about 7% over the last five trading days, though they are up nearly 10% over the past six months. The stock now trades around ₹3,846, a one‑month low, and carries a price‑to‑earnings ratio of 28.87. Remember, this is my perspective, not a prediction. Do your own research before making any investment decisions.