Tata Consultancy Services (TCS) posted a modest 2% rise in quarterly revenue, reaching about ₹670.9 billion. The growth came from steady deal activity and stable performance in its main business areas, even as some discretionary spending slowed.
Revenue and Growth Details
The company’s revenue grew 2.0% compared with the previous quarter and 4.9% year‑over‑year. Deal pipelines continued to rise, supporting the sequential increase, while weaker spending in certain non‑essential segments held back a bigger jump.
Future Outlook
Analysts expect TCS’s revenue to grow at an average of about 5.2% per year and earnings at roughly 7.2% per year from fiscal 2025 to 2027. The stock is currently priced at around 21 times the estimated earnings for FY27.
Valuation and Recommendation
Based on a projection of 22 times earnings for FY2027, the rating on TCS has been changed from “Buy” to “Accumulate,” indicating a more cautious stance while still seeing upside potential.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.