TCS shares are down ~18% this year, slipping to ₹3,244 after Q1FY26 revenue miss and stagnant global demand. With interim dividend, strong order-book, and technical support, here’s if it’s a hold, buy, or sell for investors.
Market Update & Q1 Recap
- Price Performance: TCS is down ~18% in 2025, currently trading at ₹3,244 on NSE (~52-week range: ₹3,056–4,592) .
- Q1FY26 Results:
- Revenue: ₹63,437 cr (+1.3% YoY; –3.1% in constant currency) Moneycontrol+3mint+3The Economic Times+3
- Net Profit: ₹12,760 cr (+6% YoY, beating estimates) The Financial Express+3mint+3India Today+3
- Interim Dividend: ₹11/share, record date July 16 mint+15The Financial Express+15mint+15
The muted revenue growth and global demand squeeze triggered a sharp ~2–2.5% dip post-results Outlook Business+9India Today+9The Economic Times+9.
What’s Influencing the Stock?
- Revenue Slowdown
Sluggish demand led to a 3.1% drop in constant currency revenue; four of six verticals also underperformed Reuters+1Outlook Business+1. - Macro & Trade Worries
Global headwinds—U.S./EU tariffs and geopolitical pressures—continue to impact IT spending Moneycontrol+15Reuters+15Reuters+15Goodreturns+2Reuters+2mint+2. - Investor Sentiment & Broker Caution
Analysts like Nomura, Motilal Oswal, and JM Financial have trimmed targets (₹3,780–3,950) yet maintain ‘Neutral/Buy’ ratings based on resilient margins and order pipeline mint+15Outlook Business+15Moneycontrol+15mint. - Sector Performance Drag
Post-TCS results, major IT stocks (Infosys, HCLTech, Wipro) dropped up to 3%, pressuring the wider sector Outlook Business+4Wikipedia+4The Economic Times+4mint+3India Today+3The Economic Times+3.
📊 Technical Chart Focus
- Currently trading below support at ₹3,294, near a bearish breakout level for Q1 The Economic Times.
- Top end of trading range lies near ₹3,580, with a breakdown below ~₹3,360 possibly triggering a slide toward ₹3,250–3,300 .
- Weekly sell signals seen—average 4% fall post such breaks suggests potential downside yet near-term oversold bounce opportunities .
✅ Hold or Buy?
- Short-Term Traders:
Track the ₹3,250–3,300 zone as entry—if it braces, a bounce to ₹3,580 is viable. A break below needs cautious stops. - Long-Term Investors:
TCS remains strong with high margins (~24.5%), robust order-book ($9.4 bn TCV), AI, cloud & cybersecurity tailwinds, zero debt, and consistent dividends NDTV Profit+15mint+15The Economic Times+15mint+10Moneycontrol+10ET Now+10. If India-US-EU demand stabilizes, a rebound toward ₹3,800–3,950 is feasible.
❓ FAQs — TCS Share Price
Q1. Why is TCS down ~18% YTD?
Global demand slowdown, weak Q1 revenue, and macro uncertainties—despite profit beat, market reaction was negative mintThe Economic Times+1The Economic Times+1.
Q2. What are its support/resistance levels?
Support: ₹3,250–3,300. Resistance: ₹3,580 (range top), upside target ₹3,800–3,950 per brokerages .
Q3. Should you buy for dividend income?
It offers ₹11/share interim (~0.34% yield). Combined with stable free cash flow and zero debt, dividend investors may find it attractive mint.
Q4. How does it compare to rivals?
TCS lags in growth vs Infosys, HCLTech. But analysts say it remains market-diverse and robust; sector recovery may lift all major players mint.
Q5. What brokerages are saying?
Motilal Oswal and JM Financial rate it Buy with targets ₹3,850–3,950 citing margin resilience and order book; Nomura remains Neutral on valuation mint.
⚠️ Disclaimer
This is for informational purposes only—not financial advice. Please consult a SEBI-registered advisor before investing.
🏁 Final Take
TCS is at a crossroads. While near-term volatility persists due to demand softness, Q1 results show earnings resilience, stable margins, strong cash flows, dividends, and no debt. The ₹3,250–3,300 zone could offer a prudent entry for long-term investors. Traders may capitalize on short-term bounces within the ₹3,580–3,950 target range.
