TCS Share Price Today: Tata Consultancy Services Stock Balances AI Megabet With Slow but Steady Growth

Published: 8 December 2025

Tata Consultancy Services Ltd (TCS) is trading around ₹3,250 per share on 8 December 2025, modestly higher on the day and about 27–28% below its 52‑week high near ₹4,495. ^[1]

Investors are trying to reconcile three things at once:

sluggish top-line growth,
still‑elite margins and a record order book, and
a massive multi‑year bet on AI infrastructure and data centres.

Here’s a deep dive into where TCS stands today, what has changed after its latest quarterly results, and how analysts and models are valuing the stock into FY26–27.

TCS Share Price Today (8 December 2025)

As of mid‑session on 8 December 2025, most data providers show TCS shares changing hands around ₹3,240–3,255 on the NSE/BSE, implying an intraday gain of roughly 0.3–0.5% versus the previous close near ₹3,238. ^[2]

Key snapshot:

LTP (spot price): ~₹3,250
Market capitalisation: ~₹11.7–11.8 lakh crore, keeping TCS among India’s most valuable companies ^[3]
52‑week range: approx. ₹2,867 (low) – ₹4,495 (high) ^[4]
One‑year performance: share price down about 27–28% over the last 12 months, sharply underperforming both the Nifty 50 and the Nifty IT index, which are modestly positive over the same period. ^[5]
Valuation: trailing P/E around 23–24x and P/B about 12.4x, according to 5paisa. ^[6]

Short‑term, the trend has actually turned mildly constructive. Technical research site StockInvest labels TCS a “buy or hold candidate” since late November, noting that the stock has risen in six of the last ten sessions and sits in the upper part of a weakly rising short‑term trend. Their model projects about 3.4% upside over the next three months, with a 90% probability band between roughly ₹3,065 and ₹3,379. ^[7]

So the price is no longer collapsing; it’s grinding sideways to slightly up — just from a much lower base than investors grew used to during the 2020–2023 IT boom.

FY26 So Far: Slow Growth, Strong Margins, Solid Deal Wins

TCS is in its FY26 (April 2025–March 2026). Two quarters are in, and the story is “margin‑rich but growth‑light.”

Q1 FY26 (April–June 2025)

For the quarter ended 30 June 2025:

Revenue: $7.421 billion, down 1.1% year‑on‑year and 3.1% lower in constant currency terms
Operating margin: 24.5%, up 30 bps quarter‑on‑quarter
Net income: about $1.5 billion, up 3.5% year‑on‑year with a net margin of 20.1% ^[8]
Total Contract Value (TCV): $9.4 billion, up 13.2% year‑on‑year — a strong booking quarter
LTM IT services attrition: 13.8%, continuing to normalise after the post‑pandemic spike ^[9]

In other words: revenue growth dipped, but the company defended margins and kept the deal pipeline healthy.

Q2 FY26 (July–September 2025): AI Takes Centre Stage

The more recent Q2 FY26 numbers, announced in October, are the real anchor for the current debate on the stock.

According to company filings and media coverage:

Revenue: ₹65,799 crore, up about 2.4% year‑on‑year and 3.7% quarter‑on‑quarter ^[10]
Net profit: around ₹12,075 crore, up roughly 1.3–1.4% year‑on‑year but down about 3–4% sequentially, partly due to restructuring costs ^[11]
EBIT / operating margin: EBIT in the ₹16,300–16,500 crore range; operating margin expanded about 70 bps QoQ to ~25%. ^[12]
Order book: record Q2 TCV of $10 billion, building on the $9.4 billion booked in Q1 ^[13]
Dividend: ₹11 per share interim dividend; record date 15 October 2025, payment on 4 November 2025 ^[14]

Geographically, the Americas remain the largest market, while continental Europe and MEA showed modest constant‑currency growth. India revenue has been weak, dragging down overall year‑on‑year momentum. ^[15]

The numbers paint a slightly paradoxical picture:

Growth is slow (low‑single‑digit revenue growth, essentially flat in constant currency).
Profitability is excellent, with mid‑20s operating margins and ~19–20% net margins. ^[16]
Deal wins are robust, with FY25 TCV at $39.4 billion (down from $42.7 bn in FY24 but still very strong) and Q4 FY25 TCV hitting a record $12.2 billion. ^[17]

This is why the market isn’t quite sure whether TCS is a slow‑growth cash machine, an AI‑fuelled growth story in waiting, or both.

The AI Megaproject: 1 GW Data Centre & HyperVault JV

The single biggest strategic move this year is TCS’s decision to become what management calls “the world’s largest AI‑led technology services company”. ^[18]

That vision is backed by real capital:

TCS’ board has approved a new subsidiary to build “multiple AI and sovereign data centres” in India, anchored by a 1 gigawatt AI data centre — an enormous capacity, roughly comparable to the country’s current total installed data‑centre capacity. ^[19]
Media reports and brokerage commentary suggest a capex envelope of about $6–7 billion over 5–7 years for this initiative. ^[20]
The entity, called HyperVault AI Data Centre Ltd, is evolving into a multi‑billion‑dollar joint venture with private‑equity firm TPG. Reuters reports TCS will hold a 51% stake, with around $2 billion equity between the partners and another $4.5–5 billion in debt funding. ^[21]

Strategy in a sentence: TCS doesn’t just want to build AI models; it wants to own the infrastructure layer — “sovereign cloud” data centres where compute and data stay onshore, aimed at governments, regulated industries and hyperscalers looking for local partners. ^[22]

Alongside this, TCS is:

scaling its GenAI solutions and AI‑first offerings across BFSI, manufacturing, retail and other sectors, building on its AI and Data & Analytics service line ^[23]
acquiring ListEngage in the US for about $72 million to deepen Salesforce Marketing Cloud and AI‑driven digital marketing capabilities ^[24]
investing heavily in talent: over 114,000+ employees have been trained in advanced AI skills, and the company claims an AI hackathon that drew around 281,000 participants globally. ^[25]

From a stock perspective, this AI push is a double‑edged sword:

Upside narrative: if TCS can monetise AI infrastructure and services at scale, it could unlock a new annuity revenue stream and deepen client stickiness.
Risk narrative: this is a capital‑intensive move, and some analysts worry it may dilute returns or distract from the core asset‑light IT‑services model.

That split shows up clearly in brokerage commentary.

What Are Analysts Saying About TCS Stock?

Consensus: Tilted Toward “Buy” With Mid‑Teens Upside

Across global and domestic broker aggregators:

Investing.com (45 analysts) shows a 12‑month average target around ₹3,470, with a high of ₹4,810 and a low of ₹1,950. The consensus rating is “Buy”, with 32 buys, 8 holds and 5 sells. ^[26]
NDTV Profit, citing Bloomberg data on 51 analysts, reports an average target of ~₹3,517, implying about 15% upside from the then prevailing price; 33 analysts rate TCS a Buy, 13 Hold and 5 Sell. ^[27]
Trendlyne pegs the consensus target at roughly ₹3,470–3,595, translating to high single‑digit to low‑teens upside versus the current price around ₹3,250. ^[28]
Alphaspread compiles a street average target of about ₹3,531, with a wide band between ~₹1,973 and ~₹4,914. ^[29]

Taken together, the street is modestly constructive: not euphoric, but pricing in a respectable 10–15% potential upside over 12 months if things go more or less to plan.

Bullish Camp: AI Optionality, Margin Resilience, Re‑rating Potential

A number of brokerages have turned more positive after Q2 FY26:

JM Financial: Buy, target ₹3,520 (15% upside from ~₹3,061 at the time). They like the combination of stronger international growth, margin improvement, and the AI/data‑centre investments. JM frames the 1 GW data centre as a roughly $7 billion capital deployment over 5–7 years and sees room for a valuation re‑rating as the new businesses start contributing. ^[30]
Motilal Oswal (MOFSL): Buy, target ₹3,500. MOFSL expects USD revenue CAGR of ~4.2% and INR EPS CAGR of ~4.9% over FY26–28, and explicitly does not yet factor in any revenue from the AI data‑centre subsidiary, treating it as free optionality for now. ^[31]
ICICI Direct: upgraded TCS to Buy (from Hold) with a target of ₹3,640, valuing the stock at about 24x FY27E EPS. Their thesis revolves around strong order book visibility (FY25 TCV $39.4bn, Q4 FY25 TCV $12.2bn; Q2 FY26 TCV $10bn) and a gradual growth recovery through FY26 with more meaningful acceleration by FY27 as the macro improves and AI‑led deals ramp. ^[32]
J.P. Morgan, as cited by TradeBrains, maintains an Overweight rating and has raised its target price to ₹4,050, implying more than 30% upside from pre‑result levels. They see signs that underlying growth is bottoming out and view the margin improvement as “heartening,” even though they’re sceptical about the immediate synergy of the colocation/data centre business. ^[33]
Avendus Spark has upgraded TCS to Buy with a ₹3,700 target, arguing that Q2 reversed a run of weak quarters and that strong deal momentum plus BSNL deal extensions should improve revenue visibility into H2 FY26 and FY27. ^[34]

There are also more optimistic independent takes. One detailed Substack analysis pegs “fair value” around ₹4,200, arguing that TCS’s high‑quality order book and AI repositioning are not fully reflected in the current multiple. ^[35]

Cautious & Bearish Camp: Capital Intensity and Slow Growth

Not everyone is convinced.

Elara Capital downgraded TCS from Buy to Accumulate in July 2025, cutting its target price and warning of a sharp slowdown in FY26 revenue amid weak discretionary IT spend, macro headwinds and a particularly soft India business in Q1. They acknowledge traction in AI services (over 114k employees trained) but worry that it may not fully offset cyclical weakness. ^[36]
In an NDTV Profit round‑up of broker reactions to Q2,
- Citi keeps a Sell rating, even while nudging its target up to ₹2,800, arguing that rising asset intensity (data centres) and a 3% QoQ headcount reduction point to challenges and potential risks to AI‑driven productivity gains.
- Jefferies maintains Hold and trims its target to ₹3,100, calling Q2 growth weak and seeing limited upside from the data‑centre foray.
- Nomura is Neutral with a ₹3,300 target and estimates $6–6.5 billion capex over six years for the data‑centre build‑out, concerned about synergies with the core business. ^[37]

Livemint also highlights that TCS shares have fallen roughly 28% over the past year and more than 25% in 2025 year‑to‑date, despite the strong order book — a sign that investors are demanding clearer proof of re‑acceleration before rewarding the stock. ^[38]

In short: the bulk of the sell‑side is positive, but a vocal minority thinks the stock is fairly‑valued or even expensive given near‑term growth.

Quant and AI Models: What Do Purely Technical Forecasts Say?

Beyond human analysts, a few model‑driven sites publish short‑term and long‑term projections:

WalletInvestor, which uses technical/quant signals, sees TCS at about ₹3,252 today and actually expects slightly lower prices (~₹3,205) in 12 months, labelling it a “bad long‑term (1‑year) investment” on a probabilistic basis. Over five years, its model projects a price around ₹3,451, implying only about 6% cumulative upside. ^[39]
Over the next two weeks, WalletInvestor’s 14‑day forecast puts a possible trading range between roughly ₹3,203 and ₹3,370, with a central path edging up towards the mid‑₹3,300s. ^[40]
StockInvest.us’s AI‑driven technical analysis, as noted earlier, sees a 3‑month upside of about 3–4% with relatively low volatility and identifies support around ₹3,140 and downside risk if that level breaks. ^[41]

These are model‑based and purely price‑action‑driven — they don’t “understand” TCS’s AI strategy, order book, or regulatory risks — but they do capture market momentum and volatility, which matter to short‑term traders.

How Does TCS Look Fundamentally Going Into 2026?

Put the different strands together and a fairly coherent picture emerges:

Balance sheet and profitability remain fortress‑like.
TCS still generates high‑teens to 20% net margins, converts profit to cash very efficiently, and has no net debt, giving it room to fund large capex without blowing up the balance sheet. ^[42]
Growth is the weak link — for now.
FY25 revenue grew about 3.8% YoY in USD terms, with constant‑currency growth of 4.2%, and FY26 so far is tracking in the low single digits. ^[43]
Many broker models assume only 4–5% CAGR in revenue and EPS through FY28, which is very “mature company” territory. ^[44]
Order book quality is a real positive.
The $39.4 billion FY25 TCV, record $12.2 billion Q4 TCV and $10 billion Q2 FY26 TCV mean TCS isn’t starved of work; the challenge is conversion speed and macro timing, not lack of deals. ^[45]
The AI‑infrastructure bet could materially change the story — in either direction.
If HyperVault and related AI offerings scale, TCS could exit this decade with a higher structural growth rate and deeper client lock‑in. If the capex cycle proves too aggressive relative to demand, returns on capital could compress and the stock may de‑rate. The $6–7 billion capex envelope is large even by TCS standards. ^[46]
Valuation is no longer stretched, but it’s not “distress‑cheap” either.
At ~23–24x earnings and ~12x book, TCS trades at a premium to the broad Nifty but roughly in line with its own long‑term average for mid‑single‑digit growth. A lot of AI upside is not priced in, but neither is there deep pessimism. ^[47]

Key Risks for TCS Shareholders to Watch

Even for long‑term investors who like the story, several risks deserve close watching:

Global IT spending and macro:
A deeper slowdown in the US and Europe, or renewed cuts to discretionary tech budgets, could keep TCS stuck in low‑single‑digit growth for longer than the market expects.
Execution risk on HyperVault / AI data centres:
Building and filling 1GW of AI capacity is non‑trivial. India’s nascent data‑centre industry is already wrestling with power and water constraints, and mis‑timed capacity additions could hurt returns. ^[48]
Capex and capital allocation discipline:
A multi‑billion‑dollar capex cycle will test TCS’s historically conservative balance‑sheet culture. Any sign of cost overruns, lower‑than‑promised utilisation, or excessive leverage at the JV level would be a red flag.
Talent and automation:
The combination of AI, headcount reduction (analysts note low‑single‑digit QoQ cuts) and wage hikes has to be managed with care to avoid morale issues while still delivering productivity gains. ^[49]
Regulatory and “sovereign cloud” politics:
Sovereign AI and data‑centre businesses interact with sensitive national‑security and data‑protection frameworks. Any regulatory shifts in India or key client geographies could change the economics of TCS’s AI infrastructure ambitions. ^[50]

TCS Stock Outlook: A Classic Quality Franchise With a New, High‑Beta Growth Option

As of 8 December 2025, TCS looks like a quality‑at‑a‑reasonable‑price story with a twist:

The core business offers slow but stable growth, high margins and rich cash generation.
The new AI and data‑centre strategy adds a much more volatile layer of potential upside — if executed well, it could justify higher earnings growth and a re‑rating; if not, it risks weighing on returns.

Most human analysts sit on the optimistic side of that trade‑off, clustering around ₹3,400–3,700 12‑month targets and a broadly positive “Buy” bias, with a handful of sceptics calling for caution due to capital intensity and muted near‑term growth. ^[51]

Quant models, which care only about price history, are less excited: they mostly see modest, low‑volatility returns at best over the next 12 months, with a trading range that isn’t wildly different from where the stock already is. ^[52]

For investors, the key question isn’t whether TCS is a good company — that’s almost settled law at this point — but how much you are willing to pay for a slow‑growth cash cow that’s simultaneously trying to become an AI infrastructure heavyweight.