TCS shares down post Q1 FY26 Results; brokerage initiates Buy rating on stock

New Delhi: Tata Consultancy Services (TCS), country’s leading IT company, declared its Q1 2025-26 Results on July 10, 2025. Post the earnings announcement, TCS shares dropped over 3 per cent and traded at Rs 3,268.60 apiece on Friday.

Brokerage firm Motilal Oswal has initiated a Buy rating on TCS stock and projected the counter to rise to the level of Rs 3,850 per equity share. In its report, the brokerage mentioned that at present TCS's growth is looking a little weak, but the decline in the BSNL project is now under control and the IT giant still has the scope to save costs at the operational level.

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Motilal Oswal said TCS’ valuation is not very expensive, and this is the reason it has given a Buy rating on the stock and predicts the scrip to appreciate and reach the level of Rs 3,850.

Meanwhile, Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, expressed satisfaction on TCS Q1 Results saying that the figures have beat street expectations.

"TCS Q1 FY26 results beat street expectations with a 6 per cent profit rise, though demand contraction due to geopolitical uncertainties capped excitement," Tapse said.

In its April-June quarter of FY26, TCS posted a 6 per cent increase in its net profit at Rs 12,760 crore. The IT firm had recorded a net profit of Rs 12,040 crore in the first quarter of 2024-25.

In its financials, the company stated that its revenue marginally went up 1.3 per cent to Rs 63,437 crore in the first quarter of the current fiscal from Rs 62,613 crore in the year-ago period, but was down 3 per cent on a constant currency perspective.

Tata Consultancy Services sealed deals worth USD 9.4 billion during the April-June quarter of FY26. The company informed that the total number of employees was at 6,13,069 at the end of the first quarter, up by over 6,000 on-year.