Update shared on 14 Dec 2025
Fair value Increased 0.28%Analysts have nudged their price target on Tata Consultancy Services slightly higher to ₹3,476 from ₹3,467, citing marginally stronger long term revenue growth, stable profit margins, and a modest uplift in expected future valuation multiples.
What's in the News
- Board to meet on December 10, 2025, to approve a Securities Purchase Agreement and Plan of Merger for the acquisition of Coastal Cloud Holdings, LLC and its subsidiaries, marking a sizable inorganic growth move in cloud consulting (Board Meeting)
- New wholly owned subsidiary HyperVault AI Data Center Limited incorporated to build multiple AI and sovereign data centers in India, fully funded by TCS with INR 75 million in initial capital and 100 percent ownership (Business Expansions)
- Earlier board approval on October 9, 2025, for setting up a wholly owned Indian subsidiary focused on AI and sovereign data centers, underscoring a strategic pivot toward infrastructure-led AI services (Board Meeting)
- Strategic partnership with Box, Inc. to combine TCS industry expertise and the Box AI-first content platform, offering integrated AI and content solutions for sectors including financial services, healthcare, manufacturing, retail, and government (Client Announcements)
- Resulticks expands its alliance with TCS into full-scale execution, with TCS leading onboarding of 250 agencies and more than 2,500 brands onto the RESUL platform and driving AI-powered, omnichannel marketing deployments (Client Announcements)
Valuation Changes
- Fair Value: Risen slightly to ₹3,476 from ₹3,467, reflecting a marginally higher intrinsic value estimate.
- Discount Rate: Increased marginally to 15.99 percent from 15.98 percent, implying a slightly higher required return on equity.
- Revenue Growth: Edged up modestly to 5.95 percent from 5.93 percent, indicating a small improvement in long term growth expectations.
- Net Profit Margin: Ticked up slightly to 19.79 percent from 19.79 percent, signaling essentially stable profitability assumptions.
- Future P/E: Risen marginally to 32.35x from 32.28x, pointing to a small uplift in expected valuation multiples.
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