TCS: Rs 3.87 lakh crore investor wealth gone in 2025! Target prices ahead of Q2 results
Centrum Broking suggested a 'Buy' and a target price of Rs 4,270 on TCS. Equirus has 'Add' rating on the scrip with a target of Rs 3,560. MOFSL suggested a target of Rs 3,350.
- Oct 9, 2025,
- Updated Oct 9, 2025 9:05 AM IST
IT major Tata Consultancy Services Ltd (TCS) has lost 26 per cent of its market value since the start of the Calendar 2025 amid demand concerns, but analysts trcking the IT sector have largely maintained their positive stance on the stock ahead of the K Krithivasan-led firm's September quarter results. In its earnings preview note, Centrum Broking suggested a 'Buy' and a target price of Rs 4,270 on TCS. Equirus has 'Add' rating on the scrip with a target of Rs 3,560. MOFSL suggested a target of Rs 3,350 while retaining its 'Buy' call, saying outlook on near-term demand & tech budgets, BFSI vertical, and deal wins will be key monitorables. Kotak Institutional Equities finds fair value of TCS at Rs 3,450. Nirmal Bang Institutional Equities suggested a target of Rs 3,841 apiece and Antique Stock Broking Rs 3,575.
TCS is the second most-valued stock on Dalal Street. In 2025 so far, the scrip has lost Rs 3,87,262 crore in market capitalisation. On Wednesday. the stock commanded a m-cap of Rs 10,95,140.82 crore against Rs 14,82,402.82 crore at the end of 2024.
As far as earnings are concerned, ICICI Securities expects TCS to report 5.4 per cent rise in net profit at Rs 12,556 crore on a 2.7 per cent rise in sales at Rs 66,009 crore. Ebit is seen at Rs 16,218 crore with margin at 24.6 per cent, up 10 basis points YoY, led by rupee depreciation and benefit from ramp-down of the low-margin BSNL deal.
"We forecast TCS' revenue to increase 0.4 per cent in CC terms during the quarter. In USD terms, this translates into sequential growth of around 0.6 per cent, which includes a favorable cross-currency impact of 20 bps. On the profitability side, we expect EBIT margin to remain broadly stable on a QoQ basis at 24.5 per cent, despite one month of wage hike impact," Antique Stock Broking said.
This brokerage sees deal activity to remain healthy, with total contract value (TCV) bookings anticipated to be around $10 billion, indicating to sustained client demand despite a relatively cautious spending environment.
TCS has reportedly cancelled its scheduled press conference for the second-quarter and half-year FY26 results. However, the company will go ahead with its customary analyst call. According to reports, the press conference was called off as the date coincides with the death anniversary of Ratan Tata, the former Tata Sons Chairman and an iconic figure of the Tata Group. Business Today could not verify the accuracy of the reports at this point in time.
Equirus Securities expects dollar revenue for TCS to grow 0.6 per cent QoQ in CC terms. This tepid growth is largely due to expected growth softness in international markets.
Equirus Securities expects EBIT margins to improve 47 bps largely led by rupee depreciation, which will help compensate headwinds from wage hikes for junior staff and ongoing investments. The research house expects steady deal TCV QoQ with one mega deal win announced by TCS in Q2.
Other income is seen dipping QoQ given one-time income in Q1.
According to Nomura, TCS’s consolidated revenue is likely to rise 1.4 per cent year-on-year to about Rs 65,174 crore, while net profit may inch up 4.5 per cent YoY to Rs 12,441 crore. On a sequential basis, revenue is estimated to dip 0.5 per cent in constant currency, weighed down by the waning impact of the large BSNL deal that had boosted the previous quarter.
Margins are expected to stay largely flat, with operational efficiencies offsetting the impact of the company’s annual wage hike, which took effect for one month during the quarter. Analysts also said that TCS’s sharp focus on cost optimisation and strong offshore delivery mix should cushion the margin impact.
The Street will closely watch the company’s deal wins and Total Contract Value (TCV) for the quarter, with some delayed deals from Q1 likely closing in this period. Commentary around client budgets, discretionary spending, and demand visibility—especially from the US and European markets—will be another key highlight.
The BFSI segment, TCS’s largest vertical, will also be under the spotlight, as global banking clients continue to show caution in tech spending. Meanwhile, investors will look for management commentary on how the company plans to navigate persistent macroeconomic and geopolitical uncertainty.
IT major Tata Consultancy Services Ltd (TCS) has lost 26 per cent of its market value since the start of the Calendar 2025 amid demand concerns, but analysts trcking the IT sector have largely maintained their positive stance on the stock ahead of the K Krithivasan-led firm's September quarter results. In its earnings preview note, Centrum Broking suggested a 'Buy' and a target price of Rs 4,270 on TCS. Equirus has 'Add' rating on the scrip with a target of Rs 3,560. MOFSL suggested a target of Rs 3,350 while retaining its 'Buy' call, saying outlook on near-term demand & tech budgets, BFSI vertical, and deal wins will be key monitorables. Kotak Institutional Equities finds fair value of TCS at Rs 3,450. Nirmal Bang Institutional Equities suggested a target of Rs 3,841 apiece and Antique Stock Broking Rs 3,575.
TCS is the second most-valued stock on Dalal Street. In 2025 so far, the scrip has lost Rs 3,87,262 crore in market capitalisation. On Wednesday. the stock commanded a m-cap of Rs 10,95,140.82 crore against Rs 14,82,402.82 crore at the end of 2024.
As far as earnings are concerned, ICICI Securities expects TCS to report 5.4 per cent rise in net profit at Rs 12,556 crore on a 2.7 per cent rise in sales at Rs 66,009 crore. Ebit is seen at Rs 16,218 crore with margin at 24.6 per cent, up 10 basis points YoY, led by rupee depreciation and benefit from ramp-down of the low-margin BSNL deal.
"We forecast TCS' revenue to increase 0.4 per cent in CC terms during the quarter. In USD terms, this translates into sequential growth of around 0.6 per cent, which includes a favorable cross-currency impact of 20 bps. On the profitability side, we expect EBIT margin to remain broadly stable on a QoQ basis at 24.5 per cent, despite one month of wage hike impact," Antique Stock Broking said.
This brokerage sees deal activity to remain healthy, with total contract value (TCV) bookings anticipated to be around $10 billion, indicating to sustained client demand despite a relatively cautious spending environment.
TCS has reportedly cancelled its scheduled press conference for the second-quarter and half-year FY26 results. However, the company will go ahead with its customary analyst call. According to reports, the press conference was called off as the date coincides with the death anniversary of Ratan Tata, the former Tata Sons Chairman and an iconic figure of the Tata Group. Business Today could not verify the accuracy of the reports at this point in time.
Equirus Securities expects dollar revenue for TCS to grow 0.6 per cent QoQ in CC terms. This tepid growth is largely due to expected growth softness in international markets.
Equirus Securities expects EBIT margins to improve 47 bps largely led by rupee depreciation, which will help compensate headwinds from wage hikes for junior staff and ongoing investments. The research house expects steady deal TCV QoQ with one mega deal win announced by TCS in Q2.
Other income is seen dipping QoQ given one-time income in Q1.
According to Nomura, TCS’s consolidated revenue is likely to rise 1.4 per cent year-on-year to about Rs 65,174 crore, while net profit may inch up 4.5 per cent YoY to Rs 12,441 crore. On a sequential basis, revenue is estimated to dip 0.5 per cent in constant currency, weighed down by the waning impact of the large BSNL deal that had boosted the previous quarter.
Margins are expected to stay largely flat, with operational efficiencies offsetting the impact of the company’s annual wage hike, which took effect for one month during the quarter. Analysts also said that TCS’s sharp focus on cost optimisation and strong offshore delivery mix should cushion the margin impact.
The Street will closely watch the company’s deal wins and Total Contract Value (TCV) for the quarter, with some delayed deals from Q1 likely closing in this period. Commentary around client budgets, discretionary spending, and demand visibility—especially from the US and European markets—will be another key highlight.
The BFSI segment, TCS’s largest vertical, will also be under the spotlight, as global banking clients continue to show caution in tech spending. Meanwhile, investors will look for management commentary on how the company plans to navigate persistent macroeconomic and geopolitical uncertainty.