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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% |
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.
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)
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 |
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 |
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.
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% |