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News18
11-07-2025
- Business
- News18
TCS Shares In Focus After IT Major Posts 6% Rise In Net Profit; What Should Investors Do Now?
Last Updated: Shares of Tata Consultancy Services Ltd. (TCS), the IT services giant, will be in focus after reporting their first quarter earnings TCS Share Price Today: Shares of Tata Consultancy Services Ltd. (TCS), the IT services giant, will be in focus after reporting their first quarter earnings after market hours on Thursday, July 10. Experts believe that the shares of the largest IT company in India have a chance of hitting Rs 3,580 levels after a positive market reaction fueled by the Q1 results. TCS Q1 Results Highlights The IT major reported a 5.98 per cent rise year-on-year (YoY) in its net profit to Rs 12,760 crore for the first quarter ended June 30, 2025 (Q1 FY26). On a quarter-on-quarter (QoQ) basis, the net profit grew 4.38%. It had reported a net profit of Rs 12,040 crore a year ago and Rs 12,224 crore in the previous quarter. The Q1 FY26 earnings are better than expectations. A Bloomberg consensus poll of analysts had pegged TCS' Q1 FY26 net profit growth at a muted 1.9% to Rs 12,263 crore. In dollar terms, the company's net profit rose 3.5% YoY to $1.49 billion. The company's revenue from operations during April-June 2025 stood at Rs 63,437 crore, which is 1.13 per cent higher than the Rs 62,613 crore reported last year. On a sequential basis, the revenue fell 1.61%. It was also down by 3% on a constant currency basis. It also reported new deal signings of $9.4 billion during the quarter. The company declared an interim dividend of Rs 11 for the financial year 2025-26. It had declared a final dividend of Rs 30 for the previous year 2024-25. 'We would like to inform you that at the board meeting held today, the directors have declared an interim dividend of Rs 11 per Equity Share of Rs 1 each of the Company," TCS said in a regulatory filing on July 10, 2025. Tata Consultancy Services (TCS) has shown commendable resilience in the face of ongoing macroeconomic challenges, according to Seema Srivastava, Senior Research Analyst at SMC Global Securities. 'TCS delivered a steady performance in Q1 FY26, with revenue rising to Rs 63,437 crore—marking a 1.3% year-on-year (YoY) increase—despite a 3.1% decline in constant currency terms," she said. The IT major reported a 6% YoY growth in net income, reaching Rs 12,760 crore, with a net margin of 20.1% and improved operating margin of 24.5%. The company also announced a dividend of Rs 11 per share for the quarter. Srivastava added that a Total Contract Value (TCV) of $9.4 billion reflects strong client traction, especially in artificial intelligence, cloud, and cybersecurity. Key contributors to this growth included offerings like AI & Data (including WisdomNext™), TCS Interactive, and the Cyber Defence Suite. On a sectoral basis, Energy & Utilities grew 2.8%, and Technology Services rose 1.8%, while Life Sciences and the India market saw sharp declines of 9.6% and 21.7%, respectively. Regional growth was led by MEA, Asia Pacific, and Latin America. Should You Buy TCS Stock? Anshul Jain, Head of Research at Lakshmishree Investment, commented on TCS's technical setup. He noted that the stock has been trading within a narrow band of Rs 3,580 to Rs 3,360 for the past 11 weeks, establishing firm support and resistance levels. 'If TCS holds above the Rs 3,360 mark, a rebound toward the top of the range at Rs 3,580 is highly likely," said Jain. 'However, a decisive breakdown below Rs 3,360 would confirm a range breakdown and could drag the stock down to the Rs 3,250 level. Any negative reaction to the company's results could act as a catalyst for such a move." Nomura has maintained a neutral rating on TCS, citing limited growth visibility for FY26. The brokerage noted that while TCS management remains optimistic and believes FY26 will outperform FY25 across key markets, the outlook remains uncertain. However, Nomura added that significant margin expansion in FY26 appears unlikely. In light of this, the firm has revised its FY26–28 earnings per share (EPS) estimates downward by 1–2 percent to reflect anticipated changes in revenue and margins. Consequently, it has lowered the target price for TCS shares to Rs 3,780 from its previous estimate of Rs 3,820. HSBC has also retained a hold rating on TCS, keeping its target price unchanged at Rs 3,665. The brokerage highlighted that the company's Q1 performance missed expectations, primarily due to weaker-than-expected revenues from the BSNL contract as well as softness in international business. What raised more concern, according to HSBC, was the unexpected pressure on profitability—an area where TCS usually maintains strength. Additionally, the firm observed that the overall demand commentary from management was slightly weaker than anticipated. view comments Location : New Delhi, India, India First Published: July 11, 2025, 07:42 IST News business » markets TCS Shares In Focus After IT Major Posts 6% Rise In Net Profit; What Should Investors Do Now? Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
10-07-2025
- Business
- Mint
TCS share price: Is this a stock to buy after Q1 results 2025?
TCS Q1 Results: Tata Consultancy Services (TCS) on Thursday, 10 July 2025, announced its first quarter results for the financial year 2025-26. Experts believe that the shares of the largest IT company in India have a chance of hitting ₹ 3,580 levels after a positive market reaction fueled by the Q1 results. According to the exchange filings, the company's net profits rose 6% to ₹ 12,760 crore for the April to June quarter of the financial year 2025-26, compared year-on-year (YoY) with ₹ 12,040 crore in the same quarter a year ago. TCS's consolidated revenue from operations also rose 1.3% to ₹ 63,437 crore in the first quarter, compared to ₹ 62,613 crore in the same quarter of the previous financial year. The IT major also announced an interim dividend issue of ₹ 11 per share with a face value of Re 1 apiece to investors along with its quarterly results for the April-June quarter. However, on the salary hike front, the company did not announce any plans to increase employee wages. Seema Srivastava, Senior Research Analyst at SMC Global Securities, highlighted how TCS is showing resilience amid macroeconomic headwinds, with the net profits rising for the quarter. 'Tata Consultancy Services (TCS) share price delivered a steady performance in Q1 FY26, showcasing resilience amid macroeconomic headwinds. Revenue rose to ₹ 63,437 crore, a 1.3% YoY increase, though it declined 3.1% in constant currency. Net income climbed 6% YoY to ₹ 12,760 crore, with a net margin of 20.1% and an improved operating margin of 24.5%. It declared a dividend of ₹ 11 per share,' said Srivastava. 'The Total Contract Value (TCV) of $9.4 billion indicates healthy client traction in AI, cloud, and cybersecurity. Growth was led by AI & Data (including WisdomNext™), TCS Interactive, and Cyber Defence Suite. Sector-wise, Energy & Utilities (+2.8%) and Technology Services (+1.8%) showed resilience, while Life Sciences (-9.6%) and India (-21.7%) saw significant declines. MEA, Asia Pacific, and Latin America posted healthy growth,' highlighted the stock market expert. 'On the talent and operations front, TCS added 6,071 employees YoY, bringing its total headcount to 613,069. Learning and development remained a priority, with associates logging 15 million learning hours and over 114,000 gaining advanced AI skills. Attrition dropped to 13.8%, indicating rising workforce stability. TCS strengthened its global client base through strategic partnerships with IBM (quantum computing), ICICI Securities, Virgin Atlantic, Kingfisher Plc, and Jazeera Airways. It also launched new offerings such as DigiBOLT™, SovereignSecure™ Cloud, and expanded its AI ecosystem. With 8,987 patent applications and numerous global recognitions, TCS reinforced its position as a tech innovation leader focused on sustainable, future-ready growth,' said Seema Srivastava. Anshul Jain, the Head of Research at Lakshmishree Investment, said that the shares of TCS have been trading at a 'tight' range of ₹ 3,580 to ₹ 3,360 and are expected to bounce towards the top of the range at ₹ 3,580 if they hold above the ₹ 3,360 mark. 'For the past 11 weeks, the TCS share price has been trading in a tight range of ₹ 3,580 to ₹ 3,360, with clear support and resistance levels shaping the structure. A decisive breakdown below ₹ 3,360 will confirm a range breakdown, potentially dragging the stock lower to test the ₹ 3,250 zone. An adverse reaction to its results could act as the catalyst for such a move. Conversely, if TCS shares hold above ₹ 3,360, a bounce back towards the top range at ₹ 3,580 remains highly likely,' said Jain. Tata Consultancy Services (TCS) shares closed 0.06% lower at ₹ 3,382.30 after Thursday's stock market session, compared to ₹ 3,384.35 at the previous market close. The company announced its results after market hours on 10 July 2025. TCS shares have given stock market investors more than 52% returns in the last five years. However, the stock has lost 13.15% in the last one-year period. On a year-to-date (YTD) basis, the stock is down 17.45% in 2025 and is trading 0.13% lower in the last three stock market sessions. The shares of the IT major hit their 52-week high level at ₹ 4,585.90 on 2 September 2025, while the 52-week low level was at ₹ 3,060.25 on 7 April 2025, according to the BSE data. The company's market capitalisation was at over ₹ 12.2 lakh crore as of the stock market close on 10 July 2025. Read all stories by Anubhav Mukherjee Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
