Tata Consultancy Services Ltd.
NSE: TCSTata Consultancy Services Ltd.: A 30-second snapshot
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.
P/E
15.7
Forward P/E
12.9
ROE
+48.4%
Debt / Equity
10.39
Profit Margin
+18.4%
Div. Yield
+5.8%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
8 headlines · 5 positive · 2 negative
India's TCS to take $70 million hit after US Supreme Court rejects appeal - Reuters
Reuters
TCS wins multimillion-euro deal from Canada Life - The Hindu
The Hindu
TCS bags multimillion-euro AI-powered services transformation deal from Canada Life - Fortune India
Fortune India
TCS wins multi-year IT modernisation deal from Canada Life in Europe - Indiatimes
Indiatimes
Tata Consultancy Services' Moody's Ratings upgraded to A2 - BusinessLine
BusinessLine
Recent context
- ·US Supreme Court rejected TCS's appeal on a lawsuit, confirming a $70 million financial charge (Reuters, 2026-06-16) — the most material recent negative development.
- ·TCS secured a multimillion-euro AI-powered IT transformation deal from Canada Life (June 2026), continuing a pattern of large enterprise contract wins in the European market.
- ·Moody's upgraded TCS's credit rating to A2 (May 2026), reflecting an assessment of the company's financial strength at the holding level despite the recent stock price decline.
Strengths
- +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.
Weaknesses
- −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.
Open questions
- ?Does the 37% price decline over 12 months reflect a sector-wide IT services repricing, a TCS-specific earnings reset, or both — and how does TCS's earnings trajectory compare to INFY and HCLTECH over the same period?
- ?Is the debt-to-equity of 10.39 attributable to lease liabilities (common in large IT campuses) or to financial debt, and how has this ratio trended over the past five years?
- ?How does the $70 million litigation charge interact with TCS's current operating margin profile, and does management guidance reflect any further legal contingencies?
- ?Does the forward PE compression to 12.89 (from trailing 15.71) imply analyst consensus is pricing in near-term earnings growth, or does it reflect downward estimate revisions that have already been absorbed into the price?
Peer comparison: IT
Ranks 3 of 6 on qualityTechnical state
Current price
₹2,125.00
SMA 50
₹2,326.99
SMA 200
₹2,751.85
RSI (14)
37.2 (neutral)
From 52w high
-37.6%
1Y return
-37.2%
3M return
-8.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highCurrent price of ₹2,125 is 8.7% below the 50-DMA (₹2,326.99) and 22.8% below the 200-DMA (₹2,751.85). The stock has declined 37.17% over 12 months and 8.58% over 3 months, with a 37.57% drawdown from its 52-week high. All three identified resistance levels (₹2,345.79, ₹2,457.40, ₹2,464.88) sit above current price; the sole support level is ₹2,110, approximately 0.7% below current price.
- highUS Supreme Court rejected TCS appeal, resulting in a confirmed $70 million charge as reported by Reuters on 2026-06-16. This is a material one-time financial hit to an otherwise capital-light business.
- mediumDebt-to-equity of 10.39 is elevated for a capital-light IT services model, and the persistence data flags a rising debt trend. Revenue 5-year CAGR of 9.6% is mid-range for a large-cap IT peer group. Consistency score of 59/100 is below the sector median (INFY and LTM both at 65).
- lowNews sample covers only 8 headlines, limiting sentiment reliability. The overallLabel of positive (5 positive, 2 negative) reflects recent deal wins but does not fully capture the litigation-related headline from June 2026.
Cross-section contradictions
- ROE of 48.4% ranks first among 6 tracked IT peers and 5-year earnings CAGR stands at 12.2%, yet the stock is down 37.17% over 12 months and trades 22.8% below its 200-DMA — sustained price deterioration is occurring alongside peer-leading fundamental metrics.
- Dividend yield of 5.84% and a forward PE of 12.89 indicate the market is pricing in significant earnings headwinds, even as Moody's upgraded TCS to A2 in May 2026 and the company won a multimillion-euro deal from Canada Life.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days