Infosys Ltd.
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Research updated
Tata Consultancy Services Ltd.
NSE: TCSTechnologyInformation Technology Services
- Last close
- ₹2,502.60
- Day change
- +₹24.60 (+0.99%)vs
- Market cap
- ₹9.15 lakh crIndian rupees
- Research updated
- 4 reports
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About Tata Consultancy Services
Tata Consultancy Services Ltd. is a leading global IT services, consulting, and business solutions company. It provides a consulting-led, cognitive-powered portfolio of business, technology, and engineering services to clients across diverse industries including banking, financial services, insurance, manufacturing, retail, healthcare, and energy. The company delivers end-to-end solutions such as digital transformation, cloud migration, cybersecurity, artificial intelligence, data analytics, and software development. Notable offerings include TCS BaNCS for financial services, TCS ADD for AI-powered life sciences platforms, TCS BFSI Platforms for insurers and financial firms, TCS Chroma for human resource management, and TCS Customer Intelligence & Insights for AI-driven customer analytics. Founded in 1968 and headquartered in Mumbai, India, Tata Consultancy Services Ltd. partners with the world's largest businesses to drive operational efficiency, innovation, and sustainable growth in the digital era, playing a pivotal role in the global technology services market.
- Sector
- Technology
- Industry
- Information Technology Services
- Listing
- NSE: TCS
- Chief executive
- Mr. K. Krithivasan B.E, M.Tech.
- Employees
- 5,84,519
- Headquarters
- Mumbai, India
- ISIN
- INE467B01029
- Website
- tcs.com
Public research · Report of
Business model & financial foundation
TCS (NSE: TCS), IT services and consulting: revenue of ₹2,67,021 crore in FY26 (+4.6% on FY25), an EBITDA margin of 27.1%, net profit of ₹49,210 crore and net cash of ₹37,887 crore.
- Revenue, FY26 (₹ crore)
- 2,67,021
- consolidated
- Revenue growth, FY26
- +4.6%
- on FY25
- EBITDA margin, FY26
- 27.1%
- EBITDA (Derived EBITDA before separately disclosed exceptional items) / revenue
- Net profit, FY26 (₹ crore)
- 49,210
- to owners
- Return on equity, FY26
- 48.2%
- on average equity
- Net debt, FY26 (₹ crore)
- -37,887
- Derived gross-liquidity net debt (leases and Class B CCPS)
- Market capitalisation (₹ crore)
- 8,33,933
- at the close of 23 Oct 2026
Company profile
Tata Consultancy Services is India's largest IT services company, with FY26 revenue of INR 2,67,021 crore (about USD 30bn) and roughly 598,000 employees as of Sep 2026. It sells application development and maintenance, cloud, enterprise platforms, consulting, BPS and AI services to large enterprises, with BFSI about a third of revenue and North America about half. It is controlled by Tata Sons and is building an AI data centre business (HyperVault) with TPG.
| Item | Value |
|---|---|
| Legal name | Tata Consultancy Services Limited |
| Exchange and ticker | NSE: TCS; BSE: 532540 |
| ISIN | INE467B01029 |
| CIN | L22210MH1995PLC084781 |
| Sector | Information Technology |
| Industry | IT services and consulting |
| Headquarters | Mumbai, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | B S R & Co. LLP (Walker Chandiok recommended from the 2027 AGM on rotation) |
| Market capitalisation | ₹8,33,933 crore (23 Oct 2026) |
| Shares outstanding | 361.81 crore shares (FY26) |
| Price | ₹2,530 (close, 23 Oct 2026) |
| 52-week range | ₹1,977 - ₹3,350 (to 23 Oct 2026) |
| Website | https://www.tcs.com |
Corporate structure and shareholding
Parent: Tata Sons Private Limited (71.74% as of Jun 2026).
| Entity | Holding | Business |
|---|---|---|
| Diligenta Limited (UK) | 100% | Life and pensions BPaaS |
| Tata Consultancy Services Japan | 66% | IT services in Japan |
| C-Edge Technologies | 51% | Banking technology JV |
| Coastal Cloud | 100% | Salesforce consultancy, acquired Jan 2026 for INR 6,386 cr |
| ListEngage | 100% | Salesforce marketing cloud partner, acquired Oct 2025 |
| HyperVault | 85% | AI data centre platform with TPG (49% economic subscription; 85% voting per subsidiary schedule) |
The FY26 annual report states no subsidiary is material and there are no associates or JVs. MHP (Porsche consulting arm) acquisition pending approvals.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 71.77% | 71.77% | 71.77% | 71.77% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 10.37% | 9.66% | 9.07% | 9.01% |
| Domestic institutions | 12.87% | 13.41% | 13.47% | 13.57% |
| of which mutual funds | 5.52% | 5.77% | 5.68% | 5.65% |
| Retail | 4.19% | 4.31% | 4.70% | 4.67% |
| Other | 0.80% | 0.85% | 0.99% | 0.98% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
TCS sells global IT transformation and run services—application development and maintenance, cloud, consulting, BPS and platforms including BaNCS—through the parent and subsidiaries. Revenue uses effort-based, fixed-price and output-based contracts; fixed-price cost-to-complete judgement is the core revenue-recognition audit matter. North America was 48.3% and BFSI 32.8% of management mix in Q2FY27.
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| Banking, Financial Services and Insurance | 1,03,363 | 38.7% | 27,011 | 37.3% |
| Manufacturing | 26,614 | 10.0% | 8,051 | 11.1% |
| Consumer Business | 42,432 | 15.9% | 12,090 | 16.7% |
| Communication, Media and Technology | 39,474 | 14.8% | 11,473 | 15.8% |
| Life Sciences and Healthcare | 27,745 | 10.4% | 7,504 | 10.4% |
| Others | 27,393 | 10.3% | 6,269 | 8.7% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Infosys (INFY) | Second-largest Indian IT services firm, same delivery model and client verticals |
| HCL Technologies (HCLTECH) | Large-cap IT services with comparable scale and infra/engineering mix |
| Wipro (WIPRO) | Large Indian IT services peer, similar BFSI exposure |
| LTIMindtree (LTIM) | Large-cap Indian IT services with BFSI-heavy mix |
| Accenture | Global consulting-led competitor for the same transformation deals |
| Cognizant | Global delivery competitor with offshore-heavy model |
Financial databook
| Profit and loss (₹ crore) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 2,40,893 | 2,55,324 | 2,67,021 |
| Employee benefit expenses | 1,40,131 | 1,45,788 | 1,54,994 |
| Cost of equipment and software licences | 3,702 | 11,648 | 4,399 |
| Other expenses | 32,764 | 30,481 | 35,230 |
| Derived EBITDA before separately disclosed exceptional items | 64,296 | 67,407 | 72,398 |
| Depreciation and amortisation | 4,985 | 5,242 | 5,560 |
| EBIT before separately labelled exceptional items | 59,311 | 62,165 | 66,838 |
| Other income | 4,422 | 3,962 | 4,402 |
| Finance costs including legal interest | 778.0 | 796.0 | 1,227 |
| Separately labelled exceptional items, signed impact | -958.0 | 0.00 | -4,526 |
| PBT before exceptional items | 62,955 | 65,331 | 70,013 |
| Reported profit before tax | 61,997 | 65,331 | 65,487 |
| Current tax | 15,864 | 16,910 | 16,388 |
| Deferred tax expense / (benefit) | 34.0 | -376.0 | -355.0 |
| Total tax expense | 15,898 | 16,534 | 16,033 |
| Profit after tax including NCI | 46,099 | 48,797 | 49,454 |
| Profit attributable to non-controlling interests | 191.0 | 244.0 | 244.0 |
| Reported profit attributable to owners | 45,908 | 48,553 | 49,210 |
| Reported basic and diluted EPS (₹) | 125.9 | 134.2 | 136.0 |
| Share of associates/JV profit | n.a. | n.a. | n.a. |
| External consultants (component of other_expenses) | 15,820 | 11,695 | 14,699 |
| Facility expenses (component of other_expenses) | 3,100 | 3,456 | 3,687 |
| Travel expenses (component of other_expenses) | 2,970 | 3,213 | 3,310 |
| Communication expenses (component of other_expenses) | 2,261 | 2,365 | 2,738 |
| Bad debts and allowances net (component of other_expenses) | 114.0 | 128.0 | 184.0 |
| Other-expense residual (component of other_expenses) | 8,499 | 9,624 | 10,612 |
| Raw materials (component of equipment/software cost) | 42.0 | 49.0 | 43.0 |
| Equipment/software purchased (component of cost) | 3,655 | 11,600 | 4,358 |
| Stock adjustment (component of equipment/software cost) | 5.00 | -1.00 | n.r. |
| Balance sheet (₹ crore) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Net billed current plus noncurrent receivables | 44,561 | 50,233 | 57,729 |
| Net current billed receivables | 44,434 | 50,142 | 57,630 |
| Net noncurrent billed receivables | 127.0 | 91.0 | 99.0 |
| Current unbilled receivables | 9,143 | 8,904 | 10,084 |
| Noncurrent unbilled receivables | 16.0 | 38.0 | 114.0 |
| Inventories | 28.0 | 21.0 | 29.0 |
| Trade payables including accrued expenses | 9,981 | 13,909 | 14,808 |
| Cash and cash equivalents | 9,016 | 8,342 | 6,417 |
| Other bank balances including earmarked funds | 4,270 | 7,121 | 6,491 |
| Current investments including pledged government bonds | 31,481 | 30,689 | 33,770 |
| Noncurrent investments including equity FY24/25 | 281.0 | 275.0 | 218.0 |
| Total lease liabilities | 8,021 | 9,392 | 11,283 |
| Current lease liabilities | 1,505 | 1,554 | 1,830 |
| Noncurrent lease liabilities | 6,516 | 7,838 | 9,453 |
| Non-lease borrowings | n.d. | n.d. | n.d. |
| Derived gross-liquidity net debt (leases and Class B CCPS) | -37,197 | -37,035 | -37,887 |
| Total equity including NCI | 91,319 | 95,771 | 1,08,478 |
| Total assets | 1,46,449 | 1,59,629 | 1,82,372 |
| Equity attributable to owners of parent | 90,489 | 94,756 | 1,07,240 |
| Net PPE excluding ROU, CWIP and intangible assets | 9,376 | 10,978 | 11,032 |
| Capital work in progress | 1,564 | 1,546 | 2,665 |
| Net intangible assets excluding goodwill | 940.0 | 176.0 | |
| Goodwill as originally reported | 1,860 | 9,108 | |
| Class B compulsorily convertible preference share liability | 0.00 | 126.0 | |
| Long-term bank deposits excluded from net debt liquidity | 1,709 | 1,334 |
| Cash flow (₹ crore) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Cash flow from operations | 44,338 | 48,908 | 52,094 |
| PPE plus intangible cash purchases, positive outflow | 2,644 | 3,861 | 4,078 |
| Cash PPE purchases, positive outflow | 2,202 | 2,917 | 3,670 |
| Cash intangible purchases, positive outflow | 442.0 | 944.0 | 408.0 |
| Cash ROU payments/advances, positive outflow | 30.0 | 76.0 | 109.0 |
| Separate asset acquisitions, positive outflow | 0.00 | 1,063 | 554.0 |
| Subsidiary acquisitions net of cash, positive outflow | n.r. | 0.00 | 6,750 |
| Cash dividends to company shareholders | 25,137 | 44,864 | 39,437 |
| Buyback cash consideration excluding costs/tax | 17,000 | 0.00 | n.d. |
| Buyback tax cash outflow | 3,959 | 0.00 | |
| Buyback expenses cash outflow | 46.0 | 0.00 | |
| Lease principal repaid, positive outflow | 1,614 | 1,664 | 1,861 |
| CFO less PPE/intangible cash capex | 41,694 | 45,047 | 48,016 |
| Cash dividends to non-controlling interests | 98.0 | 134.0 | |
| Cash proceeds from disposal of intangible assets | 41.0 |
| Other reported lines (₹ crore) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Actual year-end equity shares outstanding | 361.81 | 361.81 | 361.81 |
| Weighted-average shares for basic and diluted EPS | 364.69 | 361.81 | 361.81 |
| Quarterly profit and loss (₹ crore) | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 63,973 | 64,479 | 63,437 | 65,799 | 67,087 | 70,698 | 72,275 | 73,188 |
| Cost of revenue (vendor classification) * | 38,441 | 36,628 | 41,587 | 43,491 | ||||
| Other operating costs (vendor classification) * | 11,980 | 8,989 | 9,835 | 10,228 | ||||
| EBITDA (vendor classification) * | 18,535 | 19,160 | 20,033 | 20,124 | ||||
| EBIT * | 17,174 | 14,616 | 18,627 | 18,217 | ||||
| Finance costs | 234.0 | 227.0 | 195.0 | 229.0 | 538.0 | 265.0 | 273.0 | 252.0 |
| Profit before tax (after exceptional) | 16,666 | 16,402 | 16,979 | 16,068 | 14,078 | 18,362 | 17,944 | 18,638 |
| Total tax expense | 4,222 | 4,109 | 4,160 | 3,937 | 3,358 | 4,578 | 4,524 | 4,704 |
| Profit for the period | 12,444 | 12,293 | 12,819 | 12,131 | 10,720 | 13,784 | 13,420 | 13,934 |
| EPS basic and diluted (INR) | 34.21 | 33.79 | 35.27 | 33.37 | 29.45 | 37.92 | 36.90 | 38.37 |
| Employee benefit expenses | 35,956 | 36,762 | 37,715 | 38,606 | 38,530 | 40,143 | 42,137 | 41,890 |
| Cost of equipment and software licences | 3,519 | 2,748 | 726.0 | 967.0 | 1,262 | 1,444 | 1,354 | 1,352 |
| Other expenses | 7,464 | 7,989 | 8,121 | 8,248 | 9,026 | 9,835 | 10,228 | 11,131 |
| Other income (gross) | 1,243 | 1,028 | 1,660 | 867.0 | 1,118 | 757.0 | 1,568 | 1,337 |
| Depreciation and amortisation | 1,377 | 1,379 | 1,361 | 1,413 | 1,380 | 1,406 | 1,239 | 1,262 |
| Exceptional items (charge negative) | 0.00 | 0.00 | 0.00 | -1,135 | -3,391 | 0.00 | -668.0 | 0.00 |
| Non-controlling interests | 64.0 | 69.0 | 59.0 | 56.0 | 63.0 | 66.0 | 71.0 | 50.0 |
| Profit attributable to shareholders | 12,380 | 12,224 | 12,760 | 12,075 | 10,657 | 13,718 | 13,349 | 13,884 |
| EBITDA (derived; equals segment result total) | 17,034 | 16,980 | 16,875 | 17,978 | 18,269 | 19,276 | 18,556 | 18,815 |
| Share of associates/JVs | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |
| Weighted shares, basic = diluted (cr) | 361.81 | 361.81 | 361.81 | 361.81 | 361.81 | 361.81 | 361.81 | 361.81 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue growth | 6.0% | 4.6% | |
| EBITDA margin | 26.7% | 26.4% | 27.1% |
| Net margin | 19.1% | 19.0% | 18.4% |
| Return on equity | 50.3% | 51.9% | 48.2% |
| Return on assets | 31.3% | 31.7% | 28.8% |
| Net debt (₹ crore) | -37,197 | -37,035 | -37,887 |
| Net debt / EBITDA | -0.58x | -0.55x | -0.52x |
| Interest cover | 76.2x | 78.1x | 54.5x |
| Asset turnover | 1.64x | 1.67x | 1.56x |
| Receivable days | 68 | 72 | 79 |
| Inventory days (on revenue) | 0 | 0 | 0 |
| Payable days (on revenue) | 15 | 20 | 20 |
| Cash conversion | 0.97x | 1.01x | 1.06x |
| Capex intensity | 1.1% | 1.5% | 1.5% |
| Free cash flow (₹ crore) | 41,694 | 45,047 | 48,016 |
| Dividend payout | 54.8% | 92.4% | 80.1% |
| EPS, diluted (₹) | 125.9 | 134.2 | 136.0 |
| Book value per share (₹) | 252.4 | 264.7 | 299.8 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (Derived EBITDA before separately disclosed exceptional items) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Derived gross-liquidity net debt (leases and Class B CCPS); negative is net cash.
- Net debt / EBITDA: net debt / EBITDA (Derived EBITDA before separately disclosed exceptional items).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Reported basic and diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 3, information to 23 Oct 2026); market data at the close of 23 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Tata Consultancy Services includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
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- The 3-month view
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- The claims the view rests on, and what would change it
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- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
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The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Tata Consultancy Services
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Prices are the last close on the NSE, 30 Oct 2026. Research from Mool’s report of 23 Oct 2026; page updated 2 Nov 2026.
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