1 week ago
TCS to Acquire Porsche IT Arm MHP, Broker Retains Hold
Tata Consultancy Services, or TCS, plans to buy MHP from Porsche.
MHP helps companies with technology and consulting services.
TCS will pay €320 million for the business.
MHP is strong in cars, manufacturing, artificial intelligence, SAP and digital projects.
Its revenue fell 11% to €742 million in CY25.
MHP also relies heavily on employees working at client locations, which may reduce TCS’ profit margins at first.
Porsche is expected to give TCS a five-year contract worth €1.25 billion, although approvals are still needed.
The broker believes the purchase is strategically useful but continues to rate TCS as Hold.
The broker’s target price for TCS is ₹2,350, compared with a stated current price of ₹2,271.
Tata Consultancy Services will acquire Porsche’s IT consulting arm, MHP, for €320 million.
The deal values MHP at approximately 0.43 times its CY25 sales and represents TCS’ third acquisition in 12 months.
MHP adds capabilities in automotive, manufacturing, artificial intelligence, SAP and digital transformation.
MHP’s CY25 revenue fell 11% year on year to €742 million, and its onsite-heavy model may weigh on margins.
The broker retained its Hold rating and set a ₹2,350 target, citing strategic benefits and potential near-term margin dilution.
- Who
- Tata Consultancy Services, Porsche and Porsche’s IT consulting arm MHP.
- What
- TCS plans to acquire MHP for €320 million and is expected to receive a five-year Porsche contract worth €1.25 billion.
- Where
- The deal strengthens TCS’ presence in Germany and the European automotive ecosystem.
- When
- The call was published on August 26, 2026; the transaction is expected to close within three to four months, subject to approvals.
- Why
- TCS aims to expand its automotive, manufacturing, artificial intelligence, SAP and digital-transformation capabilities while pursuing a more active acquisition strategy.
Key facts
- Acquisition price
- €320 million
- Valuation
- Approximately 0.43 times MHP’s CY25 sales
- MHP CY25 revenue
- €742 million, down 11% year on year
- Porsche contract
- €1.25 billion over five years, subject to regulatory and antitrust approvals
- TCS current market price
- ₹2,271
- Broker target price
- ₹2,350
- Broker rating
- Hold
- Expected closing
- Within the next three to four months, subject to approvals
Sources
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