TCS share price in focus after Q1 results; brokerages see 45% upside to 18% downside for Tata stock – Check target – Markets

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TCS Share Price Target

TCS Share Price Target: IT stock is in focus after Q1 results as brokerages give mixed views. (Image: Shutterstock/ET Now)

TCS Share Price Target: The stocks of Tata Group’s flagship company, Tata Consultancy Services (TCS), will be in focus in today’s trading session after the company reported a rise in its net profit for Q1.

TCS Q1 ResultsIn its Q1 results, the company reported a 4.61 per cent increase in net profit to Rs 13,349 crore for the June 2026 quarter. The Tata Group company had reported a net profit of Rs 12,760 crore in the year-ago period.

Additionally, net income rose 8.5 per cent year-on-year to Rs 13,849 crore. Meanwhile, TCS’ headcount increased by over 9,200 employees during the three months ended June, taking the total workforce to 5,93,798 employees as of June 30.

Following the company’s decent Q1 update, various brokerage firms, including Citi, Motilal Oswal, and others, have given a mixed outlook on the stock.

Citi maintains SELL rating on IT stock

Citi has maintained a ‘Sell’ rating on Tata Consultancy Services (TCS) and lowered its target price to Rs 1,825 from Rs 1,965, citing weak growth prospects and muted international revenue momentum. The revised price target suggests a downside of over 10 per cent from the current market price level.

TCS reported first-quarter revenue of USD 7.62 billion, with constant-currency growth of 0.4 per cent sequentially and 3.2 per cent year-on-year. Operating margins declined by 130 basis points to 24 per cent due to wage hikes.

Citi expects subdued revenue growth amid cautious client spending, AI disruption, rising competition, and the growing influence of global capability centres.

Nirmal Bang sees downside

Nirmal Bang has retained a ‘Sell’ rating on Tata Consultancy Services (TCS) with a target price of Rs 1,682, reflecting a downside of 18 per cent, citing weak revenue and deal momentum in the first quarter of FY27.

Nirmal Bang expects growth challenges to persist, although TCS continues to see increasing contributions from AI-led transformation and outcome-based projects.

Emkay suggests ADD

Emkay has maintained an ‘ADD’ rating on Tata Consultancy Services (TCS) with a target price of Rs 2,600 following a soft first-quarter performance. The target price indicates an upside of nearly 27 per cent.

Emkay expects a recovery in the Life Sciences and Manufacturing segments, with continued strength in Technology Services and BFSI. The brokerage noted that valuations remain attractive but added that it is awaiting stronger revenue growth for a re-rating.

Nuvama retains BUY rating

Nuvama has retained a ‘Buy’ rating on Tata Consultancy Services (TCS) while reducing its target price to Rs 3,000 from Rs 3,350, citing attractive valuations after the recent correction. Despite the target price cut, the brokerage sees an upside of over 45 per cent.

Nuvama expects a recovery in FY27, supported by healthy deal momentum, strong hiring, stable margins, and rising AI-related revenue.

Motilal Oswal maintains BUY rating

Motilal Oswal Financial Services (MOFSL) has maintained a ‘Buy’ rating on Tata Consultancy Services (TCS) with a target price of Rs 2,350, reflecting an upside of 15 per cent.

MOFSL highlighted TCS’ AI initiatives, including partnerships with Anthropic and ServiceNow, and noted management’s focus on AI-led productivity, innovation centres, and specialised engineering capabilities.

DAM Capital maintains Neutral rating

DAM Capital has maintained a ‘Neutral’ rating on Tata Consultancy Services (TCS) with a target price of Rs 2,140 against the current market price of around Rs 2,050. This translates to a marginal upside of 4.5 per cent.

Brokerage Name

Rating

TCS Share Price Target

Upside/downside %

Citi Sell 1,825 ~10% Downside
Nirmal Bang Sell 1,682 ~18% Downside
Emkay Add 2,600 ~27% Upside
Nuvama Buy 3,000 ~45% Upside
Motilal Oswal Buy 2,350 ~15% Upside
DAM Capital Neutral 2,140 ~4.5 Upside
The share price of the IT stock settled nearly flat in the previous session at Rs 2,059 on the NSE.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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