INFY vs TCS
Side-by-side comparison of Infosys Ltd. and Tata Consultancy Services Ltd.. Descriptive only — not investment advice.
Infosys Ltd.
IT
Quality Score: 58/100
Tata Consultancy Services Ltd.
IT
Quality Score: 59/100
At a glance
| Metric | INFY | TCS |
|---|---|---|
| Quality Score | 58/100 | 59/100 |
| P/E (trailing) | 13.9 | 15.7 |
| Forward P/E | 12.8 | 12.9 |
| ROE | +31.4% | +48.4% |
| Profit margin | +16.4% | +18.4% |
| Debt-to-equity | 9.83 | 10.39 |
| Dividend yield | +4.76% | +5.84% |
| 1Y price return | -33.5% | -37.2% |
| From 52w high | -37.8% | -37.6% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 1.90 | 2.05 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Infosys (INFY) trades at ₹1,051.4 as of June 22 2026, down 33.5% over 12 months and 37.84% from its 52-week high, with the price sitting 9.8% below its 50-DMA and 23.8% below its 200-DMA. The company carries a PE of 13.89 — the lowest among the 6 tracked IT peers — alongside a 5-year earnings growth rate of 11.8% and ROE of 31.44%, which ranks 2nd in the peer group. Two consecutive single-day declines of approximately 9.74% on June 20 and June 21 mark a sharp acceleration of the broader downtrend.
TCS (IT sector) trades at ₹2,125 as of 2026-06-22, 37.57% below its 52-week high, below both the 50-DMA (₹2,326.99) and 200-DMA (₹2,751.85). Trailing PE is 15.71 with a forward PE of 12.89, while ROE of 48.4% ranks first among 6 tracked IT peers. A confirmed $70 million litigation charge following the US Supreme Court ruling in June 2026 adds a near-term financial headwind.
Pros
- ✓ROE of 31.44% ranks 2nd among 6 tracked IT peers (HCLTECH 23.36%, WIPRO 15.44%, TECHM 16.61%, LTM 21.29%); TCS at 48.4% is the only peer ahead.
- ✓PE of 13.89 is the lowest in the tracked peer group (next lowest: WIPRO at 14.36, TCS at 15.71); forward PE of 12.84 implies the multiple has contracted further on forward estimates.
- ✓5-year earnings growth of 11.8% outpaces 5-year revenue growth of 6.6%, suggesting margin expansion or mix-shift contribution over the period.
- ✓Quality score of 65 ties for 1st place among 6 IT peers (LTM also 65; TCS 62; others 40–49), and the company secured a new contract with Norway-based DNB Bank for financial crime operations modernisation as recently as June 7.
- ✓ROE of 48.4% is the highest among six tracked IT peers (INFY: 31.44%, HCLTECH: 23.36%, LTM: 21.29%, TECHM: 16.61%, WIPRO: 15.44%), reflecting durable capital efficiency.
- ✓5-year earnings CAGR of 12.2% and revenue CAGR of 9.6% demonstrate consistent compounding over the persistence window of 4 tracked years.
- ✓Moody's upgraded TCS to A2 (May 2026) and a multimillion-euro AI-powered IT modernisation deal was signed with Canada Life (June 2026), indicating ongoing deal flow in the enterprise segment.
- ✓Dividend yield of 5.84% at current price levels represents one of the higher yields in the large-cap IT peer group, with FCF positive in 4 of 4 tracked years supporting distributions.
Cons
- ✗Price has declined 33.5% over 12 months and 12.01% over 3 months; the stock has not traded above its 200-DMA (₹1,380.29) and is 23.8% below it, reflecting a sustained multi-month downtrend. Two additional single-day drops of ~9.74% each on June 20 and June 21 accelerated the drawdown to 37.84% from the 52-week high.
- ✗D/E ratio of 9.83 stands materially above what is typical for large-cap asset-light IT businesses; elevated leverage constrains financial flexibility relative to less-leveraged peers.
- ✗Revenue growth of 6.6% over 5 years is at the lower end of IT-sector norms; persistence consistency score of 53 (out of 100) and FCF-positive in only 4 of the tracked years limit confidence in the durability of the headline ROE figure.
- ✗CFO sold 5,191 shares on May 28, and a third-party analyst note cut the 12-month price target to ₹1,455.74; insider disposal and target reductions are incremental negative signals even if individually modest.
- ✗Price has declined 37.17% over 12 months and remains 22.8% below the 200-DMA (₹2,751.85) and 8.7% below the 50-DMA (₹2,326.99), reflecting a sustained multi-month downtrend.
- ✗US Supreme Court rejected TCS's appeal, confirming a $70 million charge (Reuters, June 2026) — a material one-time hit to earnings in the near term.
- ✗Debt-to-equity of 10.39 is elevated relative to the capital-light nature of IT services, and the persistence data flags a rising debt trend — an atypical structural development for the segment.
- ✗Consistency score of 59/100 and quality score of 62 are below peers INFY (quality 65) and LTM (quality 65), indicating mid-tier execution consistency despite leading ROE.
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