Deven Choksey's research report on Tata Consultancy Services
TCS’s Q1FY26 revenue came in at NR 6,34,370 Mn. (-1.6% QoQ /+1.3% YoY), below our estimates by 2.4%, driven by ramp-down of BSNL deal and, weakness across North America, UK and Europe. Moreover, its revenue in CC terms was weaker at -3.1% YoY to USD 7,421 Mn. driven by higher cross currency impacts
Outlook
We have revised our FY26E/FY27E EPS estimate by -1.7%/-3.6% respectively, led by lower revenue conversion on the back of reduced demand. We value TCS at 25.0x Jun’27 EPS (~10-year avg NTM P/E), implying a target price of INR 4,067.
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