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Tata Consultancy Services (TCS) is a prominent Computers - Software & Consulting company with the stock ticker TCS. As of now, it boasts a market capitalization of Rs. 1,306,564.7 Crores.
TCS provides a wide range of information technology (IT) and IT-enabled services across various global regions, including the Americas, Europe, and India. The company operates through multiple segments:
The company offers a comprehensive suite of products and services, including:
Additionally, TCS provides cloud services, cognitive business solutions, consulting, cybersecurity, data analytics, enterprise solutions, and digital engineering.
Founded in 1968 and headquartered in Mumbai, India, TCS is a subsidiary of Tata Sons Private Limited.
The company has demonstrated strong financial performance, with a trailing 12-month revenue of Rs. 256,173 Crores and a profit of Rs. 49,006 Crores in the past four quarters. TCS has also experienced a revenue growth of 35.7% over the last three years. The company's commitment to its shareholders is evident through its dividend yield of 4.18%, returning Rs. 151 per share in the last 12 months.
Valuation | |
|---|---|
| Market Cap | 12.48 LCr |
| Price/Earnings (Trailing) | 25.46 |
| Price/Sales (Trailing) | 4.87 |
| EV/EBITDA | 17.4 |
| Price/Free Cashflow | 35.64 |
| MarketCap/EBT | 18.97 |
Fundamentals | |
|---|---|
| Revenue (TTM) | 2.56 LCr |
| Rev. Growth (Yr) | 6.14% |
| Rev. Growth (Qtr) | 0.35% |
| Earnings (TTM) | 49.01 kCr |
| Earnings Growth (Yr) | 12.14% |
| Earnings Growth (Qtr) | 4.09% |
Profitability | |
|---|---|
| Operating Margin | 25.68% |
| EBT Margin | 25.68% |
| Return on Equity | 47.87% |
| Return on Assets | 30.42% |
| Free Cashflow Yield | 2.81% |
Buy Backs: Company has bought back it's stock in the past which is a good thing.
Dividend: Pays a strong dividend yield of 4.38%.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money has been increasing their position in the stock.
Profitability: Very strong Profitability. One year profit margin are 19%.
Technicals: Bullish SharesGuru indicator.
Size: It is among the top 200 market size companies of india.
Momentum: Stock is suffering a negative price momentum. Stock is down -5.2% in last 30 days.
Comprehensive comparison against sector averages
TCS metrics compared to IT
| Category | TCS | IT |
|---|---|---|
| PE | 25.46 | 25.53 |
| PS | 4.87 | 3.95 |
| Growth | 5.3 % | 4.3 % |
TCS vs IT (2021 - 2025)
Updated Apr 27, 2025
TCS experienced a market cap loss of Rs 24,295.46 crore after announcing the deferral of employee salary hikes due to economic uncertainties.
TCS shares declined by 3.82%, closing at Rs 3,238, as the company reported a slight dip in consolidated net profit for Q4 FY25.
Despite revenue growth of 5.3% year-on-year, TCS's outlook remains cautious due to recent tariff-induced uncertainties in the sector.
TCS has partnered with ICICI Securities to enhance its retail trading and brokerage platform, utilizing the TCS BaNCS trading solution.
TCS declared a final dividend of Rs 30 per share for FY25, following a special dividend of Rs 66 and interim dividends totaling Rs 20.
Brokerage Elara Capital upgraded TCS to 'BUY' due to favorable valuations and a strong outlook for technology spending.
This information is AI-generated and may contain inaccuracies. Please verify from multiple sources.
Understand Tata Consultancy Services ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| TATA SONS PRIVATE LIMITED | 71.74% |
| LIC of India | 4.63% |
| Sbi Nifty 50 Etf | 1.37% |
| TATA INVESTMENT CORPORATION LIMITED | 0.03% |
| JAMSETJI TATA TRUST (Mr. Noel N. Tata, Mr. Venu Srinivasan, Mr. Vijay Singh) | 0% |
| NAVAJBAI RATAN TATA TRUST (Mr. Noel N. Tata, Mr. Venu Srinivasan, Mr. Vijay Singh, Mr. J. N. Mistry) | 0% |
| TATA INTERNATIONAL LIMITED | 0% |
| Tata Capital Ltd | 0% |
| THE TATA POWER COMPANY LIMITED | 0% |
| TATA INDUSTRIES LIMITED | 0% |
| TATA STEEL LIMITED | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Analysis of Tata Consultancy Services's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Banking, Financial Services and Insurance | 36.7% | 23.5 kCr |
| Communication, Media and Technology | 18.7% | 12 kCr |
| Consumer Business | 15.7% | 10 kCr |
| Life Sciences and Healthcare | 10.0% | 6.4 kCr |
| Manufacturing | 9.7% | 6.2 kCr |
| Others | 9.1% | 5.8 kCr |
| Total | 64 kCr |
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 | InfosysComputers - Software & Consulting | 6.15 LCr | 1.65 LCr | -7.47% | +2.89% | 22.2 | 3.72 | +5.96% | +13.44% |
| HCLTECH | HCL TechComputers - Software & Consulting | 4.28 LCr | 1.18 LCr | -3.38% | +4.92% | 25.07 | 3.64 | +7.49% | +8.85% |
| WIPRO | WiproComputers - Software & Consulting | 2.52 LCr | 92.14 kCr | -9.91% | +4.51% | 20.2 | 2.74 | -1.32% | +10.05% |
| TECHM | Tech MahindraComputers - Software & Consulting | 1.43 LCr | 53.53 kCr | +3.23% | +22.83% | 37.9 | 2.67 | -0.30% | +32.11% |
| LTIM | LTIMindtreeComputers - Software & Consulting | 1.33 LCr | 38.08 kCr | -2.63% | -2.94% | 29.14 | 3.5 | +6.13% | -0.52% |
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: Apr 25
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:
Outlook hinges on execution of large deals, AI-driven efficiency, and resolving global economic volatility.
Last updated: Apr 25
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.
Investor Care | |
|---|---|
| Dividend Yield | 4.38% |
| Dividend/Share (TTM) | 151 |
| Shares Dilution (1Y) | 0.00% |
| Diluted EPS (TTM) | 134.78 |
Financial Health | |
|---|---|
| Current Ratio | 2.62 |
| Debt/Equity | 0.00 |
| Debt/Cashflow | 0.00 |