TCS share price targets: Highest, lowest among 30 analysts; Morgan Stanley, CLSA weigh in
Among global brokerages, Morgan Stanley's Gaurav Rateria suggested 'Equal weight' on ITCS with a target of Rs 2,160. CLSA's Sumeet Jain suggested 'Hold' and a target of Rs 2,038.
- Oct 9, 2026,
- Updated Oct 9, 2026 9:13 AM IST
Tata Consultancy Services Ltd received mixed ratings from brokerages, with targets largely unchanged following its September quarter results. A few brokerage felt TCS delivered a weak set of Q2 numbers in terms of underlying growth and order-book momentum, while margins remained under pressure.
TCS investments are likely to weigh on margins in FY27, said foreign brokerage Nomura. It retained its 'Buy' on TCS with an unchanged target of Rs 2,630. Nomura said there was no change in the demand environment for TCS, and continued scrutiny on discretionary spends that offer no near-term benefits. In Q2 particularly, there was a deferral of a project in India which TCS expects to come back in the medium term, while it expects international markets to maintain the current momentum based on the deal pipeline and client demand, Nomura noted.
Demand for AI services remains on growth path and now form 10 per cent of total revenues, it added. The highest target on the Street stands at Rs 3,266 by Centrum Broking's Piyush Pandey. Nirmal Bang's target of Rs 1,578 is the lowest among 30-odd brokerages.
TCS' deal wins at $9.6 billion remained soft and did not yet signal a meaningful acceleration in demand, said Nirmal Bang Institutional Equities.
"TCS’s revenue and order book momentum continue to remain a concern, with Q2FY27 CC growth at just 0.5 per cent QoQ and TCV at $9.6bn (down 4 per cent YoY). Management indicated that the demand environment remains selective, with discretionary programmes without near-term value still under scrutiny, while margins remain at 24 per cent despite continued investments and higher subcontracting costs," Nirmal Bang said as it suggested 'Sell' and a target of Rs 1,578 on the stock. MOFSL said demand commentary saw no meaningful change, with discretionary programs continuing to see measured decision making. While TCV increased and client conversations remained constructive, MOFSL believe the near-term outlook remains dependent on pipeline conversion and a recovery in regional markets. This brokerage suggested a target of Rs 2,400.
Nuvama stayed positive. It said TCS is well-positioned for a gradual recovery in FY27 with improving international growth and strong traction in AI revenue. "While near-term margins face pressure, we view investments for growth as the right strategy. We are making a minor change to FY27E/28E EPS. Retain ‘BUY’ with an unchanged target of Rs 2,750," Nuvama said.
Antique Stock Broking called TCS Q2 a mixed bag. It said the growth was led by BFSI, Manufacturing and Technology and broadening across international markets, but a project deferral in India weighed on overall performance and deal momentum moderated. This brokerage suggested 'Hold' and a target of Rs 2,325 on the stock against Rs 2,400 earlier.
JM Financial said near-term growth could benefit from seasonal recovery in consumer business and BSNL ramp-up, although Q3 furloughs remain a headwind, expected to be similar versus last year. I said AI-led revenue deflation is yet to fully play out.
"We haven’t factored in the MHP acquisition, ramped up BSNL from mid-Q3 and expect India deferral to start from Q1FY28. We revise our FY27–29E EPS marginally and maintain target multiple of 15x Mar’28E EPS – TP is unchanged at Rs 2,375. Valuations are at 13.4x 1-year forward consensus EPS. Maintain ADD," JM said.
Among global brokerages, Morgan Stanley's Gaurav Rateria suggested 'Equal weight' on ITCS with a target of Rs 2,160. CLSA's Sumeet Jain suggested 'Hold' and a target of Rs 2,038. UBS' Aditya Chandrasekar has 'neutral' with a target of Rs 2,565. JPMorgan gave a target of Rs 2,300. Jefferies and Citi have lower targets of Rs 1,800 and Rs 1,840, respectively. HSBC finds the stock worthy of Rs 2,350. BNP Paribas's Kumar Rakesh sees TCS at Rs 2,400.
Anand Rathi (Rs 2,430), ICICI Securities (Rs 1,920), Axis Capital (Rs 2,550), Dolat Capital (Rs 2,400), Systematix (Rs 2,350), Ambit (Rs 1,990), Avendus Spark (Rs 2,430), IIFL (Rs 2,500), Haitong International (Rs 2,621), DAM Capital (Rs 2,120) are some other brokerages sharing their targets on TCS post Q2 results.
Tata Consultancy Services Ltd received mixed ratings from brokerages, with targets largely unchanged following its September quarter results. A few brokerage felt TCS delivered a weak set of Q2 numbers in terms of underlying growth and order-book momentum, while margins remained under pressure.
TCS investments are likely to weigh on margins in FY27, said foreign brokerage Nomura. It retained its 'Buy' on TCS with an unchanged target of Rs 2,630. Nomura said there was no change in the demand environment for TCS, and continued scrutiny on discretionary spends that offer no near-term benefits. In Q2 particularly, there was a deferral of a project in India which TCS expects to come back in the medium term, while it expects international markets to maintain the current momentum based on the deal pipeline and client demand, Nomura noted.
Demand for AI services remains on growth path and now form 10 per cent of total revenues, it added. The highest target on the Street stands at Rs 3,266 by Centrum Broking's Piyush Pandey. Nirmal Bang's target of Rs 1,578 is the lowest among 30-odd brokerages.
TCS' deal wins at $9.6 billion remained soft and did not yet signal a meaningful acceleration in demand, said Nirmal Bang Institutional Equities.
"TCS’s revenue and order book momentum continue to remain a concern, with Q2FY27 CC growth at just 0.5 per cent QoQ and TCV at $9.6bn (down 4 per cent YoY). Management indicated that the demand environment remains selective, with discretionary programmes without near-term value still under scrutiny, while margins remain at 24 per cent despite continued investments and higher subcontracting costs," Nirmal Bang said as it suggested 'Sell' and a target of Rs 1,578 on the stock. MOFSL said demand commentary saw no meaningful change, with discretionary programs continuing to see measured decision making. While TCV increased and client conversations remained constructive, MOFSL believe the near-term outlook remains dependent on pipeline conversion and a recovery in regional markets. This brokerage suggested a target of Rs 2,400.
Nuvama stayed positive. It said TCS is well-positioned for a gradual recovery in FY27 with improving international growth and strong traction in AI revenue. "While near-term margins face pressure, we view investments for growth as the right strategy. We are making a minor change to FY27E/28E EPS. Retain ‘BUY’ with an unchanged target of Rs 2,750," Nuvama said.
Antique Stock Broking called TCS Q2 a mixed bag. It said the growth was led by BFSI, Manufacturing and Technology and broadening across international markets, but a project deferral in India weighed on overall performance and deal momentum moderated. This brokerage suggested 'Hold' and a target of Rs 2,325 on the stock against Rs 2,400 earlier.
JM Financial said near-term growth could benefit from seasonal recovery in consumer business and BSNL ramp-up, although Q3 furloughs remain a headwind, expected to be similar versus last year. I said AI-led revenue deflation is yet to fully play out.
"We haven’t factored in the MHP acquisition, ramped up BSNL from mid-Q3 and expect India deferral to start from Q1FY28. We revise our FY27–29E EPS marginally and maintain target multiple of 15x Mar’28E EPS – TP is unchanged at Rs 2,375. Valuations are at 13.4x 1-year forward consensus EPS. Maintain ADD," JM said.
Among global brokerages, Morgan Stanley's Gaurav Rateria suggested 'Equal weight' on ITCS with a target of Rs 2,160. CLSA's Sumeet Jain suggested 'Hold' and a target of Rs 2,038. UBS' Aditya Chandrasekar has 'neutral' with a target of Rs 2,565. JPMorgan gave a target of Rs 2,300. Jefferies and Citi have lower targets of Rs 1,800 and Rs 1,840, respectively. HSBC finds the stock worthy of Rs 2,350. BNP Paribas's Kumar Rakesh sees TCS at Rs 2,400.
Anand Rathi (Rs 2,430), ICICI Securities (Rs 1,920), Axis Capital (Rs 2,550), Dolat Capital (Rs 2,400), Systematix (Rs 2,350), Ambit (Rs 1,990), Avendus Spark (Rs 2,430), IIFL (Rs 2,500), Haitong International (Rs 2,621), DAM Capital (Rs 2,120) are some other brokerages sharing their targets on TCS post Q2 results.