What should investors do with TCS stock post Q4: buy, sell or hold?

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26 Aug, 2025 12:21

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Tata Consultancy Services (TCS) share price rose over 6 percent in the early trade on April 17 after the company reported its fourth-quarter numbers.

The company on April 16 reported a consolidated profit of Rs 8,049 crore, down 0.85 percent on a quarter-on-quarter basis.

Dollar revenue for the quarter under review stood at $5,444 million, down 2.5 percent QoQ.

Constant currency revenue growth at 3 percent was much lower compared to 6.8 percent in December quarter and 12.7 percent in Q4 FY19.

Also Read - TCS Q4: IT bellwether posts lacklustre numbers; 8 key takeaways

At the operating level, earnings before interest and tax rose half a percent sequentially to Rs 10,025 crore. The margin number was in line with estimates, expanding 10 bps to 25.1 percent.

Phillip Capital | Rating: buy | Target: cut to Rs 1,875 from Rs 1,950 per share

The recovery in Indian markets may be led by domestic consumption stories.

IT sector might see a longer gestation period, while the recovery in IT sector would be led by large caps

The overall management commentary was quite somber, meanwhile, one company that can emerge stronger out of this crisis will be TCS.

FY21 anyways remains a washout year for the entire sector however expect the company to bounce back strongly in FY22

Phillip Capital sees TCS as a fundamentally superior stock to own in one’s portfolio.

Axis Capital | Rating: Add | Target: Cut to Rs 1,820 from Rs 1,900 per share

Axis Capital reduced FY21/22 dollar revenue estimates by 4.5percent, while EPS estimate is down by 5.2percent/4.3percent in FY21/22.

It sees 0.8percent revenue CAGR in dollar terms over FY19-22 with EPS of Rs 86/87/96 in FY20/21/22.

Jefferies | Rating: Buy | Target: Rs 1,900 per share

Broking house kept buy rating on company given strong franchise. It expect lower revenue & earnings volatility for company than other market leaders.

The near-term stock price weakness provides good opportunities for investors.

The significant broad-based demand impact expected in the near term. 2/3rd of Covid-19 impact on Q4 performance on account of supply side issues.

CLSA | Rating: Buy | Target: Cut to Rs 2,115 from Rs 2,550 per share

CLSA sees challenges for both revenue & margin in H1FY21, while it expect a recovery only in H2FY21 led by its strong order book.

Company is at best positioned to exploit scale digital transformation adoption. CLSA has cut FY21-22 EPS estimates by 8-10percent.

Morgan Stanley | Rating: Equal-weight | Target: Cut to Rs 1,780 from Rs 1,825 per share

Q4 saw supply-side challenges, while FY21 to see heightened demand impact.

Investec | Rating: Hold | Target: Rs 1,822 per share

The drop in revenue was largely led by supply-side disruptions. The company expects a sharp drop in Q1 & Q3FY21 revenues.

Broking house sees no meaningful change to its organic growth estimates

At 09:28 hrs Tata Consultancy Services was quoting at Rs 1,823.20, up Rs 107.60, or 6.27 percent on the BSE.