Shares of Tata Consultancy Services (TCS) opened slightly lower on Friday, trading at Rs 3,049.90, down 0.39%, after the IT giant reported its Q2 FY26 results post market hours on Wednesday. The stock had gained in three out of the last four sessions, rebounding from its 52-week low hit on October 1.
TCS reported a 3.7% year-on-year increase in revenue to Rs 65,799 crore, while EBIT rose to Rs 16,565 crore, with margins expanding to 25.2%. However, net profit declined 5.4% sequentially to Rs 12,075 crore, leading to a mixed reaction from investors.
The company announced ambitious plans to build 1 GW of AI-led data center capacity over the next 5–7 years, requiring a capex of $6–7 billion. TCS will initially set up 150 MW capacity within 18 months, backed by an external financial investor to fund the project.
Brokerage views remained divided:
- Goldman Sachs retained a Buy rating with a target price of Rs 3,300, citing strong AI and data center prospects.
- Jefferies maintained a Hold with a target of Rs 3,100, flagging weak headcount trends and limited synergy between IT services and data centers.
- Citi reiterated a Sell with a target of Rs 2,800, calling the business outlook “challenged.”
- Avendus upgraded TCS to Buy with a target of Rs 3,700, citing strong deal momentum and an optimistic management outlook.
At the time of writing, TCS shares were trading at Rs 3,049.90, down Rs 11.80 from the previous close, with a market capitalization of Rs 11.06 lakh crore.
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