AI Summary
✦ ClarthaTata Consultancy Services is an IT and IT-enabled services company serving financial services, life sciences, and enterprise technology clients. Revenue platforms include TCS BaNCS and BFSI Platforms, TCS ADD for life sciences, and cloud offerings including ERP on Cloud and Chroma. Improving margins indicate operating leverage despite modest 4.6% revenue growth and 1.4% profit growth. Recent employee-data exposure alerts, with no identified systems breach, create a limited reputational monitoring point. ROE is high at 47.7%, but debt-to-equity of 10.21 indicates substantial leverage amplifies returns and increases balance-sheet sensitivity. Profit growth trails revenue growth, although the improving margin trend supports near-term earnings conversion. At 17.6 times earnings, valuation appears fair relative to the sector, rather than demanding a premium. The open question is whether AI platforms and cloud subscriptions can accelerate growth while preserving margins amid cautious enterprise technology spending.
Valuation Metrics
Trading 25.3% below historical median. Valuation is declining — currently in the strongly undervalued zone (z-score: -1.49). Confidence: 83%.
Live forward EPS implies next-12-month EPS of ₹162.43. Applying the stock's normalized valuation corridor produces a fair range of ₹3,489.00 to ₹4,341.75, with base value near ₹3,864.21 (+58.0% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹162.43
Forward P/E
15.1x
Base Fair Value
₹3,864.21
Fair Range
₹3,489.00 - ₹4,341.75
Upside To Base
+58.0%
Estimate Source
Live forward EPS
Growth Estimate
+4.6%
5Y Average
22.77
Current
17.78
Overvalued
26.73
Undervalued
21.48
5Y Average
4.11
Current
3.21
Overvalued
4.72
Undervalued
3.49
5Y Average
15.01
Current
11.72
Overvalued
15.99
Undervalued
13.93
Peers & Comparison
Sector: Information Technology · Theme: IT Services & Consulting
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
INFOSYS LIMITED INFYIT Services & Consulting | +2.9% | 16.4% | 15.3x Fair | -11% vs avg | -16.9% |
WIPRO LTD WIPROIT Services & Consulting | +10.6% | 13.9% | 14.8x Fair | -13% vs avg | -23.3% |
HCL TECHNOLOGIES LTD HCLTECHIT Services & Consulting | +3.0% | 13.0% | 21.2x Premium | +24% vs avg | -8.8% |
TATA CONSULTANCY SERV LT trades in line with peers (17.9x vs avg 17.1x), reflecting a fair valuation within the It Services & Consulting cohort. Peers include INFOSYS LIMITED, WIPRO LTD, HCL TECHNOLOGIES LTD — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹58.05K CrMar 2026Latest net profit
₹14.53K CrMar 2026Latest EPS
₹40.15Mar 2026Net margin
26.2%Mar 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Mar 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 49,780 | 49,862 | 50,165 | 50,844 | 51,488 | 52,844 | 53,990 | 53,883 | 54,136 | 52,788 | 54,531 | 55,567 | 58,052 |
| Expenses | 36,910 | 36,726 | 36,363 | 36,481 | 36,942 | 38,269 | 39,432 | 39,156 | 40,067 | 38,031 | 38,863 | 39,873 | 41,922 |
| Operating Profit | 11,862 | 12,167 | 12,823 | 13,399 | 13,571 | 13,606 | 13,550 | 13,602 | 12,951 | 13,654 | 14,529 | 14,592 | 15,186 |
| OPM % | 23.83% | 24.4% | 25.56% | 26.35% | 26.36% | 25.75% | 25.1% | 25.24% | 23.92% | 25.87% | 26.64% | 26.26% | 26.16% |
| Other Income | 1,433 | 1,903 | 1,755 | 1,809 | 1,806 | 2,417 | 3,185 | 2,118 | 1,922 | 2,703 | 1,768 | 2,049 | 3,516 |
| Interest | 250 | 138 | 134 | 204 | 197 | 145 | 146 | 211 | 201 | 171 | 203 | 512 | 238 |
| Depreciation | 1,008 | 969 | 979 | 964 | 975 | 969 | 1,008 | 1,125 | 1,118 | 1,103 | 1,139 | 1,102 | 944 |
| Profit before tax | 13,045 | 13,932 | 14,444 | 15,004 | 15,180 | 15,878 | 16,589 | 15,509 | 14,672 | 16,186 | 16,094 | 16,129 | 18,464 |
| Tax % | 24.88% | 24.75% | 24.34% | 21.95% | 24.95% | 23.7% | 21.67% | 23.71% | 24.24% | 22.45% | 21.23% | 16.88% | 21.33% |
| Net Profit | 9,800 | 10,484 | 10,929 | 11,711 | 11,393 | 12,115 | 12,994 | 11,832 | 11,116 | 12,552 | 12,678 | 13,407 | 14,526 |
| EPS in Rs | 26.79 | 28.65 | 29.87 | 29.45 | 31.48 | 33.48 | 35.91 | 32.71 | 30.72 | 34.69 | 32.70 | 28.16 | 40.15 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.