TCS share price target at Rs 3,350! 15 brokerages share views post Q4 results

Tata Consultancy Services Ltd (TCS) largely met analyst expectations in terms of revenue, EBIT margins, and order book in the March quarter. Total contract value (TCV) was strong at $12 billion, including three mega deal. A couple of analysts said Ebit margins stood at 25.3 per cent, up 10 basis points sequentially, supported by better realisations and currency tailwinds, partly offset by reinvestments and higher subcontracting costs. They largely retained 'Buy' or 'Hold' rating on the stock, with a few even raising targets to as high as Rs 3,350. 

Nirmal Bang Institutional Equities 

Nirmal Bang Institutional Equities said Q4 results were a strong exit to FY26 after five weak quarters. A robust TCV pipeline provides a positive outlook for the near future and TCS has proven margin resilience with margin expansion despite talent and AI-led investments, he said.

"Post-4QFY26, our revenue, EBIT, and EPS estimates remain unchanged. We believe that TCS can deliver sustainable earnings growth, best margins, strong ROICs, and healthy cash flows in the Tier-1 space; it also has a high  margin of safety during times of high volatility. We reiterate our ‘BUY’ rating on TCS and value it at an unchanged multiple of 19x on Mar-28E EPS for an unchanged target of Rs 3,046," it said.

Antique Stock Broking

Antique Stock Broking said TCS revenue for Q4 came broadly in-line with its expectations at $7.7 billion, up 1.2 per cent sequentially in constant currency (CC) terms. Management commentary, it said, suggests that while macro uncertainty persists, the outlook is more constructive versus prior quarters. 

"The company expects a return to normal seasonality, with 1Q and 2Q likely to be stronger than 4Q, in line with historical trends. Discretionary spending remains subdued but is showing early signs of recovery," Antique said.

The brokerage said although demand is expected to improve gradually over the coming quarters, it believes much of the recovery is already priced in. It maintained 'Hold' rating with a target price of Rs 2,900. 

Nomura India

Foreign brokerage Nomura India has raised its FY27-28F earnings per share (EPS) estimates by 2-3 per cent and retained its 'Buy' on the stock. "Our EPS increases are driven by both higher revenue growth and margin estimates. We raise our target to Rs 2,930 against  Rs 2,840 earlier), based on unchanged 18x FY28F EPS (methodology in this report). We introduce FY29F estimates.

TCS, it said, noted that despite the uncertainty on rates, inflation and central bank actions, BFSI clients continued to prioritise on core and legacy modernisation, data estate transformation and cloud migration. AI projects have started moving from proof of concepts to large projects and now forms 7 per cent of TCS’ revenues, Nomura said.

MOFSL

MOFSL said growth remains patchy for TCS, adding that margins are likely to stay flat. It expects TCS to report dollar revenue and EPS compounding at 3.8 per cent and 7 per cent over FY26-28, reflecting gradual recovery, with growth continuing to come from select pockets rather than a broad-based pickup. 

"Margins improved somewhat less with productivity gains and INR tailwinds largely being reinvested or passed through and we expect margins to remain flat in FY27. We keep our estimates largely unchanged and reiterate BUY with a target of Rs 3,000, based on 18x FY28E EPS, implying 16 per cent upside," it said.

Equirus Securities, Choice, Nuvama

Equirus Securities said risk-reward for TCS is turning favourable. It upgraded the stock to 'LONG' with a target of Rs 2,945. Choice Institutional Equities upgraded the stock price target to Rs 3,350 from Rs 3,275 earlier post Q4 results.

"TCS appears well set for a recovery in FY27, after a 2.5 per cent CC YoY decrease in FY26. Deal-wins have been decent, margins solid and AI revenue is growing strong. Valuations (16.5x FY27E PE), post-recent correction are highly attractive," Nuvama Institutional Equities said while suggesting a fresh target price of Rs 3,350 from Rs 3,300 earlier.

Centrum Broking

Centrum Broking maintained 'Buy' rating, as the recent stock correction appears overdone relative to improving fundamentals. Strong order book, accelerating AI-led opportunities, resilient margins, and improving client confidence underpin medium-term growth visibility, it said.

JM Financial

This brokerage said geopolitical impact for TCS has been restricted to Middle East and to some extent to travel and transportation industry. JM revised its FY27-28 revenue growth marginally.
FY27-28 EPS estimates revised by 2-3 per cent due to slightly higher other income. We maintain target multiple of 17 times based on September 2027 – revised target of Rs 2,730 (vs Rs 2,660 earlier). Valuations are at 16x FY27E cons. EPS. Maintain ADD," it said.

CLSA, others

CLSA reportedly suggested a target of Rs 2,985, HSBC Rs 2755, JPMorgan Rs 3,150, HDFC Securities Rs 3,000 and Morgan Stanley Rs 2,880.