Tata Consultancy Services Limited
Current Price
₹2,327.15
As of 20 May 2026
Market Cap
₹8.26L Cr
As of 20 May 2026
Detailed Analysis
Report updated: 2026-05-15
Tata Consultancy Services Limited
India's #1 IT services exporter, deliberately slowing FY26 to fund the AI pivot — Tata Sons promoter 71.77%, ICRA AAA, ~Rs.1L Cr net cash, ROCE 63%, FCF/PAT 97%. Q4 FY26 marked the cycle bottom with $12bn TCV (4-year high), 25.3% op margin and AI revenue at $2.3bn annualised (from zero in 18 months).
Rs.2,278
Share price (15 May 2026)
Decade-low P/E 15.8x
Rs.8,26,000 Cr
Market cap (Large Cap)
Rs.2,67,021 Cr
FY26 revenue (-2.4% CC)
First material decline in years
Rs.49,454 Cr
FY26 PAT (P/E 15.8x)
Dividend Rs.110/share, yield ~4.8%
$40.7bn
FY26 TCV (+16% YoY)
AI revenue $2.3bn annualised, +28% QoQ
71.77%
Promoter holding (Mar 2026)
Tata Sons; down from 72.4% post FY25 buyback
Stock Funda Summary
- Deliberate FY26 slowdown (-2.4% CC) to fund AI pivot.
- Q4 showed cycle bottom with $12bn TCV and 25.3% OPM.
- Core thesis: Can AI $2.3bn grow 16-25% QoQ while legacy doesn't fall more? If YES → 20-25x re-rate (+25%).
- If NO → 13-14x (-15%).
- Stock at decade-low P/E 15.8x offers valuation cushion.
- Next 12 months critical for inflection.