TCS Shares Rally 4% After Beating D-Street Q1FY27 Result Estimates
After beating Dalal street expectations for Q1 results, the shares of Tata Consultancy Services (TCS) rallied as much as 4% to hit an intra-day high of Rs 2,133.30 per share on Friday, July 10.
- Republic Business
- 2 min read
TCS Share Price: After beating Dalal street expectations for Q1 results, the shares of Tata Consultancy Services (TCS) rallied as much as 4% to hit an intra-day high of Rs 2,133.30 per share on Friday, July 10.
Recently, Motilal Oswal reiterated its "BUY" rating on TCS with a target price of "Rs 2,350, implying a 15% potential upside."
TCS has reported an increase of 5% YoY in net profit to Rs 1,334.9 Crore for Q1FY27. The IT services major posted a revenue growth of 14% YoY to Rs 7,227.5 crore. TCS reported an operating margin of 24.0% and a net margin of 19.2% for the quarter ending June. The company also declared a dividend of Rs 12 per share.
According to brokerage major MOSL, "TCS expects demand to improve in 2Q, supported by a pent-up technology backlog and stronger client conversations. While we also expect 2Q to be better, we believe evidence around demand improvement is scant."
"The pent-up demand narrative has been around for some time, while geopolitics, tariff uncertainty and cautious discretionary spending continue to weigh on decision-making," it said.
Key Highlights From TCS Management Commentary
Demand momentum showed early signs of recovery, with management citing a pent-up technology backlog and indicating an optimistic outlook for 2Q.
SG&A/investment spending rose ~16% YoY in USD terms, driven mainly by employee costs, partnership investments, and targeted M&A-related charges (following a reclassification that removed the earlier PAR/SG&A split).
A cost category refinement was undertaken this quarter to clarify previously elevated other expenses, with no impact on total expenses or margins; prior periods restated for comparability.
Deal mix reflects only a marginal, not a significant, shift toward transformative net new deals vs. renewals. Mega deal cadence has moderated to one in the current quarter vs three in the prior quarter, though six mega deals have been signed over the last five quarters cutting across industries.
As of 10:45 AM, the shares of TCS was trading 1.56 % higher at Rs 2,081.40 apiece.
Published By : Nitin Waghela
Published On: 10 July 2026 at 10:49 IST