Avendus has upgraded TCS to a ‘Buy’ rating, setting a target price of ₹3,700 per share, implying meaningful upside from the current market price of ₹3,060.20.
The brokerage highlighted strong deal-win momentum, noting $9.4 billion in total contract value (TCV) for Q1 and $10 billion in Q2, which underpins a healthy order pipeline.
Avendus expects revenue recovery in H2FY26 and FY27, driven by a low base effect and improving client spending trends. It maintains an optimistic growth outlook for the IT major, despite ongoing pressure on discretionary spending across global markets.
The brokerage also pointed out that vendor consolidation deals are enhancing visibility and supporting long-term confidence. Meanwhile, the AI data centre initiative presents significant potential, though it comes with execution and cost-related risks.
Avendus stated that its revenue and EBIT margin estimates for FY26 and FY27 remain largely unchanged, reflecting steady operational performance expectations.
CMP: ₹3,060.20
Target Price: ₹3,700
Rating: Buy
Disclaimer: This article is based on a brokerage report by Avendus. It is for informational purposes only and does not constitute investment advice. Investors should consult certified financial advisors before making any investment decisions.
