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TCS: Future Expansion Of AI Data Centers Will Drive Further Upside

Update shared on 14 Nov 2025

Fair value Decreased 0.87%
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AnalystConsensusTarget's Fair Value
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1Y
-22.8%
7D
2.5%

Analysts have slightly reduced their price target for Tata Consultancy Services from ₹3,500.50 to ₹3,470.00. This reflects minor adjustments to forecasts and key company metrics.

What's in the News

  • Tata Consultancy Services incorporated HyperVault AI Data Center Limited as a wholly owned subsidiary to establish multiple AI and Sovereign Data Centers, with an initial capital investment of INR 75 million (Business Expansions).
  • TCS and Box, Inc. have launched a strategic partnership to deliver industry-focused, AI-enabled content management services for sectors including financial services, healthcare, manufacturing, retail, and the public sector (Client Announcements).
  • Resulticks expanded its partnership with TCS to full-scale execution. TCS is leading the onboarding of 250 agencies and over 2,500 brands onto the RESUL platform, focusing on consulting, marketing operations, and rapid deployment (Client Announcements).
  • The TCS Board approved the incorporation of a wholly owned subsidiary in India to establish AI and Sovereign Data Centers for technology infrastructure services (Business Expansions).
  • The TCS Board of Directors held a meeting on October 9, 2025, to consider and approve the company's audited financial results for the quarter and six-month period ending September 30, 2025, as well as declaration of a second interim dividend (Board Meeting).

Valuation Changes

  • Consensus Analyst Price Target has decreased slightly from ₹3,500.50 to ₹3,470.00.
  • Discount Rate has fallen modestly from 16.06% to 15.86%.
  • Revenue Growth projection has increased marginally from 5.90% to 5.91%.
  • Net Profit Margin estimate has declined slightly from 19.94% to 19.79%.
  • Future P/E has decreased a little from 32.43x to 32.24x.

Disclaimer

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