Archive · 9 Oct 2026
TCS Shares Jump After Q2 Results as Brokerages Split
Tata Consultancy Services, or TCS, reported its results for the second quarter of FY27.
Its revenue and profit increased compared with the same quarter last year.
TCS shares rose 5% during the day after the results.
Some analysts were concerned that costs and pressure on profit margins could limit future growth.
They also said some customers are being careful about spending on projects.
Other analysts saw reasons to stay positive, including demand for AI services and a pipeline of potential work.
As a result, brokerages gave different opinions, from Sell to Buy.
Their price targets also varied, so the article does not give one shared answer on whether to buy, hold or sell.
TCS shares rose 5% intraday after its Q2 FY27 results, which were described as slightly better than expected.
Revenue was Rs 73,188 crore, up 1.3% quarter-on-quarter and 11.2% year-on-year; net profit rose 15% year-on-year to Rs 13,884 crore.
Analysts cited margin pressure, cautious discretionary spending and uncertain near-term demand as risks to growth.
Jefferies and Ambit Capital rated the stock Underperform and Sell, respectively, while Nomura and Motilal Oswal retained Buy ratings.
JM Financial maintained its Add recommendation; brokerages' target prices ranged from Rs 1,800 to Rs 2,630.
- Who
- Tata Consultancy Services and the brokerages assessing its shares.
- What
- TCS reported Q2 FY27 results, its shares rose 5% intraday, and brokerages issued differing ratings and price targets.
- When
- After the Q2 FY27 results; the article does not specify a calendar date.
- Where
- India; the article discusses TCS shares and its financial results.
- Why
- The share-price rise followed results described as slightly better than expected, while analysts differed over growth prospects and margin pressures.
Cautious views
More positive views
Growth and demand outlook
Cautious views
Jefferies and Ambit Capital pointed to weak or unchanged demand, cautious discretionary spending and risks to earnings growth; both held negative ratings.
More positive views
Nomura retained Buy, citing demand for AI services, client demand and the deal pipeline; Motilal Oswal also retained Buy while noting that growth depends on pipeline conversion and regional recovery.
Margins and earnings
Cautious views
Jefferies said margins missed estimates and expected subdued EPS growth; Ambit lowered its FY27 EBIT margin estimate by 20 basis points to 23.8%.
More positive views
JM Financial described the quarter as in line and said international business performed well, while maintaining an Add recommendation; Nomura retained Buy despite lowering its FY27 EPS estimate.
- Revenue
- Rs 73,188 crore; up 1.3% quarter-on-quarter and 11.2% year-on-year.
- Net profit
- Rs 13,884 crore; up 15% year-on-year and 4% sequentially.
- Share movement
- TCS shares were up 5% intraday.
- Jefferies
- Underperform rating; target price Rs 1,800.
- Nomura
- Buy rating; target price Rs 2,630.
- Ambit Capital
- Sell rating; target price Rs 1,990.
- Motilal Oswal
- Buy rating; target price Rs 2,400.
- JM Financial
- Add recommendation; target price Rs 2,375.