TCS.NS — Tata Consultancy Services Limited

Generated 2026-06-10 22:22
USAIND

Quarterly Verdict

🟢 93/100

Worth buying

Quality grade B; 3 improving / 1 weakening metrics this quarter.

➕ Pricing power (gross margin): Gross margin 40% — wide margins, likely pricing power
➕ Free cash flow yield: FCF yield 4.8% — strong
➕ Leverage (net debt / EBITDA): Net cash — $298.0B more cash than debt
➕ Non-cyclical (beta): Beta 0.23 — low volatility vs market
➕ Revenue +5.4% vs last quarter
➕ Net income +28.7% vs last quarter
➕ Free cash flow +2.7% vs last quarter
➖ Debt +17.4% vs last quarter

Heuristic from the Quality Scorecard + quarter-over-quarter trends. Not financial advice.

Valuation

Analyst consensus
UndervaluedFairOvervalued
Target ₹2,939.58 · Price ₹2,153.90 · +27% margin of safety · 43 analysts · range ₹1,775.00–₹3,900.00

Outside circle of competence — analyst targets only. Not financial advice.

Key Trends (6-yr)

GAAP EPS
Sales
Shares Outstanding

Quality Scorecard

B83/100
✅ Pricing power (gross margin) 40% Gross margin 40% — wide margins, likely pricing power
✅ Free cash flow yield 4.8% FCF yield 4.8% — strong
✅ Leverage (net debt / EBITDA) net cash Net cash — $298.0B more cash than debt
✅ Non-cyclical (beta) 0.23 Beta 0.23 — low volatility vs market
⚪ Recurring revenue — no recurring-revenue tag (add to watchlist.json / company_meta.json)
🟡 Returns capital to shareholders yes dividend ~5.8%; shares -0.0%/yr
🟡 Buyback efficiency (net share-count Δ) -0.0%/yr Shares outstanding -0.0% YoY — roughly flat

Compounder checklist (proxy metrics from yfinance). 6 of 7 criteria scored. Not financial advice.

Company Overview

Basic Information

Company Name: Tata Consultancy Services Limited
Symbol: TCS.NS
Exchange: NSI
Sector: Technology
Industry: Information Technology Services

Company Details

Country: India
City: Mumbai
Employees: 584,519
Market Cap: ₹7.79T
Website: https://www.tcs.com

Business Description

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services. It offers TCS ADD, a suite of AI powered life sciences platforms; TCS BaNCS, a financial services platform; TCS BFSI Platforms, a cloud-native, subscription-based as-a-service digital ecosystem for insurers and financial firms; TCS Chroma, a cloud-based AI-led hire-to-retire modular platform; TCS Customer Intelligence & Insights, an AI-powered, real-time customer data analytics solution; TCS ERP on Cloud, SAP transformation with AI-powered smart solutions; ignio, a cognitive automation software product; TCS iON, a learning ecosystem; and TCS HOBS, a cloud-native, catalog-centric platform with composable architecture and insights-led personalization capabilities. It also offers TCS Intelligent Urban Exchange for enterprises and smart cities; TCS OmniStore, a retail commerce platform; TCS Optumera, a strategic intelligence platform; TCS Tap, a platform for intelligent procurement; Quartz, a distributed ledger technology; TCS TwinX, a risk-free experimentation platform; TCS MasterCraft, an AI-driven cognitive automation product; Jile, an enterprise agile planning and delivery tool; TCS DigiBOLT, an end-to-end, organization-wide enterprise platform; and TCS AI WisdomNext, an enterprise grade GenAI platform. In addition, the company provides AI, data and analytics, cloud, cognitive business, consulting, cybersecurity, enterprise solutions, industrial autonomy and engineering, network solutions and services, TCS interactive, and sustainability services. It serves banking; capital markets; consumer packaged goods and distribution; communications, media, and information services; education; energy, resources, and utilities; healthcare; high tech; insurance; life sciences; manufacturing; public services; retail; and travel and logistics industries. The company was founded in 1968 and is based in Mumbai, India. The company operates as a subsidiary of Tata Sons Private Limited.

Key Metrics

Price & Valuation

Current Price
₹2.15K
Market Cap
₹7.79T
P/E Ratio
15.84
Forward P/E
13.02
PEG Ratio
2.33
Price to Book
6.87

Profitability

Profit Margin: 18.43%
Operating Margin: 25.29%
Gross Margin: 40.31%
Return on Equity (ROE): 48.40%
Return on Assets (ROA): 24.44%
Revenue Growth: 9.60%

Financial Health

Current Ratio: 2.23
Quick Ratio: 1.97
Debt to Equity: 10.39
Total Debt: ₹112.83B
Total Cash: ₹410.80B
Beta: 0.23

Trading & Analyst Info

52-Week Range

52-Week High: ₹3.54K
52-Week Low: ₹2.13K
50-Day Average: ₹2.40K
200-Day Average: ₹2.84K

Analyst Recommendations

Recommendation: BUY
Target Mean Price: ₹2.94K
Target High: ₹3.90K
Target Low: ₹1.77K

Price History

Financial Statements

Income Statement (Annual)

Item2026-03-312025-03-312024-03-312023-03-312022-03-31
Tax Effect Of Unusual Items₹-9.02B₹445.28M₹-1.91B₹277.56MN/A
Tax Rate For Calcs₹0.25₹0.25₹0.26₹0.26N/A
Normalized EBITDA₹759.40B₹711.93B₹685.06B₹626.00BN/A
Total Unusual Items₹-36.66B₹1.76B₹-7.46B₹1.08BN/A
Total Unusual Items Excluding Goodwill₹-36.66B₹1.76B₹-7.46B₹1.08BN/A
Net Income From Continuing Operation Net Minority Interest₹492.10B₹485.53B₹459.08B₹421.47BN/A
Reconciled Depreciation₹55.60B₹52.42B₹49.85B₹50.22BN/A
Reconciled Cost Of Revenue₹1.47T₹1.46T₹1.33T₹1.20TN/A
EBITDA₹722.74B₹713.69B₹677.60B₹627.08BN/A
EBIT₹667.14B₹661.27B₹627.75B₹576.86BN/A
Net Interest Income₹26.27B₹25.00B₹30.03B₹24.69BN/A
Interest Expense₹12.27B₹7.96B₹7.78B₹7.79BN/A
Interest Income₹38.54B₹32.96B₹37.81B₹32.48BN/A
Normalized Income₹519.74B₹484.22B₹464.63B₹420.67BN/A
Net Income From Continuing And Discontinued Operation₹492.10B₹485.53B₹459.08B₹421.47BN/A

Showing 15 of 48 rows

Balance Sheet (Annual)

Item2026-03-312025-03-312024-03-312023-03-312022-03-31
Treasury Shares NumberN/AN/A₹0.00N/A₹0.00
Ordinary Shares Number₹3.62B₹3.62B₹3.62B₹3.66BN/A
Share Issued₹3.62B₹3.62B₹3.62B₹3.66BN/A
Total Debt₹112.83B₹93.92B₹80.21B₹76.88BN/A
Tangible Book Value₹979.54B₹919.25B₹880.87B₹876.03BN/A
Invested Capital₹1.07T₹947.56B₹904.89B₹904.24BN/A
Working Capital₹747.91B₹700.10B₹668.80B₹667.12BN/A
Net Tangible Assets₹979.54B₹919.25B₹880.87B₹876.03BN/A
Capital Lease Obligations₹112.83B₹93.92B₹80.21B₹76.88BN/A
Common Stock Equity₹1.07T₹947.56B₹904.89B₹904.24BN/A
Total Capitalization₹1.07T₹947.56B₹904.89B₹904.24BN/A
Total Equity Gross Minority Interest₹1.08T₹957.71B₹913.19B₹912.06BN/A
Minority Interest₹12.38B₹10.15B₹8.30B₹7.82BN/A
Stockholders Equity₹1.07T₹947.56B₹904.89B₹904.24BN/A
Other Equity Interest₹1.07T₹943.94B₹901.27B₹900.58BN/A

Showing 15 of 81 rows

Cash Flow Statement (Annual)

Item2026-03-312025-03-312024-03-312023-03-312022-03-31
Free Cash Flow₹479.48B₹449.71B₹416.64B₹388.65BN/A
Repurchase Of Capital StockN/A₹0.00₹-170.00B₹0.00₹-180.00B
Issuance Of Capital Stock₹1.26B₹0.00N/AN/A₹1.62B
Capital Expenditure₹-41.46B₹-39.37B₹-26.74B₹-31.00BN/A
End Cash Position₹64.17B₹83.42B₹90.16B₹71.23BN/A
Beginning Cash Position₹83.42B₹90.16B₹71.23B₹124.88BN/A
Effect Of Exchange Rate Changes₹9.59B₹1.74B₹650.00M₹5.09BN/A
Changes In Cash₹-28.84B₹-8.48B₹18.28B₹-58.74BN/A
Financing Cash Flow₹-421.33B₹-474.38B₹-485.36B₹-478.78BN/A
Net Other Financing Charges₹740.00M₹280.00M₹-39.59B₹-41.74BN/A
Interest Paid Cff₹-9.01B₹-8.40B₹-6.99B₹-7.79BN/A
Cash Dividends Paid₹-394.37B₹-448.64B₹-251.37B₹-413.47BN/A
Net Preferred Stock Issuance₹1.26B₹0.00N/AN/AN/A
Preferred Stock Issuance₹1.26B₹0.00N/AN/AN/A
Net Common Stock IssuanceN/A₹0.00₹-170.00B₹0.00₹-180.00B

Showing 15 of 50 rows

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