TCS Share Price Live Updates: Stock set to open with modest losses after Q2 results
Published on 10/10/2025 09:08 AM
– 1 GW Data Center capacity to come up in the next 5-7 years
– Will put up 150 MW of capacity in the next 18 months
– 150 MW capacity requires capex of up to $1 billion
– 1 GW data center capacity will cost between $6 billion to $7 billion
– Will get a financial investor for data center capex, to sign them up soon
Goldman Sachs has maintained its “buy” rating on TCS with a price target of ₹3,300.
It said that TCS’ data centers announcement could translate into 15% to 20% of India’s overall data center capacity.
“TCS is stepping up acquisitions, which it has historically stayed away from, to enhance capabilities, including in AI,” the brokerage said.
The brokerage sees a “neutral” read-through for the rest of the Indian IT companies after TCS’ results.
Jefferies has maintained its “hold” rating on TCS with a price target of ₹3,100.
It said that growth in key markets is yet to recover, and that a 3% sequential decline in headcount does not bode well for the company.
TCS’ data center foray has limited synergies with IT Services, according to Jefferies, and as a result, it has cut its estimates by up to 1% and expects TCS’ Earnings Per Share (EPS) to grow at a Compounded Annual Growth Rate (CAGR) of 4% over financial year 2026-2028.
– Maintain ‘sell’ rating
– Price target of ₹2,800
– Revenue supported by higher equipment and software share
– Announced investments in data centers and intensity set to increase
– Business outlook is challenged
– Upgrade to buy
– Price target of ₹3,700
– Deal win momentum remains strong
– Management growth outlook is optimistic despite continued pressure on discretionary spends
– AI data centre announced carries significant potential & also risks
– Maintain revenue and margin estimates for FY26 and FY27
– Restructuring-related costs linked to severance at ₹1,135 crore
– International market revenue growth at 0.6% sequentially
– The company did not disclose its US Dollar revenue
– Revenue in rupee terms increased by 3.7% from last year to ₹65,799 crore
– EBIT at ₹16,565 crore from ₹15,514 crore
– EBIT margin at 25.2% from 24.5%
– Net profit down 5.4% to ₹12,075 crore
– All numbers compared quarter-on-quarter
The results were better than expectations on most fronts, but there were multiple announcements made along with the results that could grab the spotlight.
More on this in subsequent posts.
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Welcome to CNBC-TV18’s live updates on TCS’ share price reaction to its quarterly results reported after market hours on Thursday.
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