Tata Consultancy Services stock: Prabhudas Lilladher trims target to INR 2,390

Published on 10/20/2026 at 15:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Second-quarter revenue rose 2.40 percent to USD 7.642 billion. Tata Consultancy Services stock last stood at INR 2,460.90 on October 19, 2026.

Target and operating facts

Prabhudas Lilladher cut its target to INR 2,390 on October 9, 2026.
Second-quarter revenue rose 2.40 percent year over year to USD 7.642 billion.
Tata Consultancy Services stock was last at INR 2,460.90 on October 19, 2026.
The company had a market capitalization of INR 8.9 trillion and a price-to-earnings ratio of 17.25.

TCS, INE467B01029, Illustration mit AI erstellt.

Tata Consultancy Services (ISIN INE467B01029) faces a lower analyst target after Prabhudas Lilladher cut its October 9, 2026 target from INR 2,580 to INR 2,390 while retaining its Buy rating, according to DSIJ. Tata Consultancy Services stock was last at INR 2,460.90 on October 19, 2026 at 3:29 p.m. IST on the NSE, down 0.17 percent from the prior NSE close of INR 2,465.00 on October 16, 2026.

Target falls below the latest price

The revised INR 2,390 target lies 2.88 percent below the October 19 price of INR 2,460.90. Prabhudas Lilladher cited margin pressure alongside improving AI-led services and a healthy deal pipeline in its October 9 report, with the target based on 14 times September 2028 earnings per share.

The adjustment leaves a narrower valuation signal than the earlier INR 2,580 target. The source also reported second-quarter constant-currency revenue growth of 0.50 percent quarter over quarter and said the 24.00 percent operating margin was 0.40 percentage points below its estimate.

Revenue and AI scale shape the outlook

TCS reported USD 7.642 billion of second-quarter revenue, up 0.20 percent quarter over quarter and 2.40 percent year over year, while annualized AI revenue reached USD 3.1 billion. These figures come from the company's investor-relations page for the quarter ended September 30, 2026, which also listed net profit of USD 1.450 billion and a 19.00 percent net margin: Tata Consultancy Services.

The results show the contrast investors are weighing. Revenue advanced 2.40 percent year over year, while the 24.00 percent operating margin cited by Prabhudas Lilladher stayed below its 24.40 percent estimate. The combination gives the revised target its relevance without changing the company's reported AI growth figure.

Range and peer valuation

TCS's NSE price sat within a 52-week range of INR 1,976.80 to INR 3,350.00 on October 19, 2026. Its market capitalization was INR 8.9 trillion, its price-to-earnings ratio was 17.25, and volume reached 8,674,856 shares.

Comparison with peers

Tata Consultancy Services: down 0.17 percent, price-to-earnings ratio 17.25, market capitalization INR 8.9 trillion.

Infosys (NSE, INR): down 2.63 percent, price-to-earnings ratio 15.27, market capitalization INR 4.6 trillion.

Wipro (NSE, INR): down 1.23 percent, price-to-earnings ratio 14.31, market capitalization INR 1.8 trillion.

Analyst view meets operating data

The lower target places the October 9 analyst view below the latest NSE price, while the second-quarter figures point to modest reported growth and continued AI expansion. The next valuation debate therefore centers on whether operating-margin pressure eases as AI investment converts into revenue.