TCS Surges on AI Hopes Despite Mixed Q1 Results

Tata Consultancy Services (TCS) announced its Q1FY27 financial results, revealing a net profit of ₹13,349 crore, marking a 5% increase year-over-year, though a 3% decrease quarter-over-quarter. Revenue saw a robust 14% year-over-year jump, reaching ₹72,275 crore. The company declared an interim dividend of ₹12 per equity share, with July 31, 2026, set as the payment date.

CEO and MD K Krithivasan highlighted resilient growth amid challenges, noting a strong $9.5 billion order book, including a significant AI-led transformation deal with SKF. The company is scaling its AI business to a $2.6 billion annualized revenue run rate. Brokerages offered mixed outlooks; Centrum retained a 'Buy' rating with a revised target price of ₹3,480, citing gradual demand improvement and AI as a key driver.

Conversely, 360 ONE Capital maintained a 'Hold' rating with an unchanged target price of ₹2,290, acknowledging the results were in line with expectations but noting limited near-term re-rating scope due to AI disruptions and macro pressures. TCS's stock saw an intra-day jump of over 3% following the results, reflecting investor optimism about future growth prospects.