# Tata Consultancy Services (TCS.NSE)

Canonical: https://gigainvestors.com/s/TCS.NSE

Analysis as of: 2026-10-16T07:33:24.406Z. Financial observations: FY2012–FY2026.

Listing currency: INR. Reporting currency: INR.

## Verdict

A wonderful business

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: INR 2,350.00 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.02×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.26×

- FY2018: 0.25×

- FY2019: 0.26×

- FY2020: 0.25×

- FY2021: 0.26×

- FY2022: 0.25×

- FY2023: 0.24×

- FY2024: 0.25×

- FY2025: 0.24×

- FY2026: 0.25×

### moat: pass

- The return floor includes all equity, debt and leases without deducting cash or goodwill. Only a floor above the hurdle establishes a pass.

- Conservative return floor, median: 35.2%

- Conservative return floor, second lowest: 27.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.5%

- ROIC including acquisitions, ten-year median: 39.7%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: INR 2.25T

- Net income, five-year total: INR 2.24T

- Return on incremental invested capital: 108.4%

- Working capital / revenue, annual change: 0.5 pp

- Working capital / revenue, change between three-year averages: 3.4 pp

- Working capital / revenue, final three-year average: 18.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.01×

- FY2023: 1.01×

- FY2024: 1.02×

- FY2025: 0.99×

- FY2026: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- Per-share earnings: 66.71 to 134.19 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.9%

- Ordinary dilution, 5-year annual growth: -0.7%

- Market cap gain: INR 3.74T

- Cumulative retained earnings: INR 1.02T

- Diluted shares, 10-year annual growth: -0.9%

- Diluted shares, 5-year annual growth: -0.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.1%

- Per-share value change: INR 67.48

- Per-share value, starting three-year median: INR 66.71

- Per-share value, ending three-year median: INR 134.19

- Buybacks concentrated in cheaper years (correlation): 0.46

- Average buyback yield: 1.2%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- Cumulative net income, 10 years: INR 3.73T

- ROIC, last three-year median: 48.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: INR 66.71

- FY2018: INR 67.46

- FY2019: INR 83.05

- FY2020: INR 86.19

- FY2021: INR 86.71

- FY2022: INR 104.75

- FY2023: INR 115.19

- FY2024: INR 125.88

- FY2025: INR 134.19

- FY2026: INR 136.01

### accounting: pass

- Sloan accruals: -1.6%

- Receivables to sales index (DSRI): 1.10×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.19×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 1.0%

- FY2018: 0.7%

- FY2019: 2.5%

- FY2020: -0.0%

- FY2021: -4.9%

- FY2022: -1.2%

- FY2023: 0.1%

- FY2024: 1.1%

- FY2025: -0.2%

- FY2026: -1.6%

## Holders

## Price story

Down 48% since Aug 2024 · sales +4.6%

Story as of 2026-10-16T09:59:56.041Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +4.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: INR 1.18T 

- FY2018: INR 1.23T 

- FY2019: INR 1.46T 

- FY2020: INR 1.57T 

- FY2021: INR 1.64T 

- FY2022: INR 1.92T 

- FY2023: INR 2.25T 

- FY2024: INR 2.41T 

- FY2025: INR 2.55T 

- FY2026: INR 2.67T 

### Gross margin · FY2026

gross margin 45.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2023: 46.9% 

- FY2024: 44.8% 

- FY2025: 42.9% 

- FY2026: 45.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in computers software & consulting; annual sales are INR 2.7 trillion.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2026: revenue 2670210000000; grossProfit 1204180000000; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 42.9% to 45.1% during 2024–26; it earns 47.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); FY2024: grossProfit / revenue = 44.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); FY2025: grossProfit / revenue = 42.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); FY2026: grossProfit / revenue = 45.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); 10-year return on capital observations [[2023,0.43198127219890214],[2024,0.48013017842101235],[2025,0.48456873525468475],[2026,0.4712578161239447]]; median 0.4756939972724785. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Reinvests 15% of cash earnings; earns over 100% on new investment.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2017: growth capex 20000000; upkeep 19870000000; owner earnings 262890000000. Growth capex / owner earnings = 0.00007607744684088402.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2018: growth capex 0; upkeep 18620000000; owner earnings 259780000000. Growth capex / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2019: growth capex 1750000000; upkeep 20560000000; owner earnings 314720000000. Growth capex / owner earnings = 0.00556049822064057.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2020: growth capex 0; upkeep 32490000000; owner earnings 326200000000. Growth capex / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2021: growth capex 0; upkeep 31760000000; owner earnings 333190000000. Growth capex / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2022: growth capex 0; upkeep 29950000000; cash acquisitions 0; owner earnings 385190000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2023: growth capex 0; upkeep 31000000000; cash acquisitions 0; owner earnings 425540000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2024: growth capex 0; upkeep 26740000000; cash acquisitions 0; owner earnings 466050000000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2025: growth capex 0; upkeep 39370000000; cash acquisitions 10630000000; owner earnings 481940000000. Growth capex plus acquisitions / owner earnings = 0.022056687554467363.

- Source: https://www.screener.in/company/TCS/consolidated/ (filed 2026-10-16T07:33:24.406Z); FY2026: growth capex 0; upkeep 41460000000; cash acquisitions 73040000000; owner earnings 487630000000. Growth capex plus acquisitions / owner earnings = 0.14978569817279494.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); Incremental return on capital 1.0837733303350574, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); Dividend observations: [[2017,109730000000],[2018,107600000000],[2019,114720000000],[2020,377020000000],[2021,109070000000],[2022,133750000000],[2023,414100000000],[2024,252180000000],[2025,449620000000],[2026,395710000000]]. Zero only counted when supported by a complete cash-flow statement.

### What the price says

The price is 3.2 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:24.406Z); Closing price 2350 INR; reporting-to-trading FX 1; FY2026 annual sales per share 738.0110995732574; price multiple 3.184233951710006. FY2026 cash earnings/share 134.77455049786627. Closing-price date 2026-10-15.

## Monthly share-price history (INR per share)

- 2016-11: INR 1,138.03 per share

- 2016-12: INR 1,182.78 per share

- 2017-01: INR 1,114.90 per share

- 2017-02: INR 1,233.13 per share

- 2017-03: INR 1,215.90 per share

- 2017-04: INR 1,136.57 per share

- 2017-05: INR 1,273.30 per share

- 2017-06: INR 1,181.18 per share

- 2017-07: INR 1,245.90 per share

- 2017-08: INR 1,248.18 per share

- 2017-09: INR 1,217.97 per share

- 2017-10: INR 1,312.00 per share

- 2017-11: INR 1,318.50 per share

- 2017-12: INR 1,350.60 per share

- 2018-01: INR 1,556.18 per share

- 2018-02: INR 1,517.53 per share

- 2018-03: INR 1,424.57 per share

- 2018-04: INR 1,766.05 per share

- 2018-05: INR 1,741.05 per share

- 2018-06: INR 1,847.75 per share

- 2018-07: INR 1,940.20 per share

- 2018-08: INR 2,078.40 per share

- 2018-09: INR 2,183.70 per share

- 2018-10: INR 1,938.15 per share

- 2018-11: INR 1,968.25 per share

- 2018-12: INR 1,893.05 per share

- 2019-01: INR 2,014.10 per share

- 2019-02: INR 1,983.45 per share

- 2019-03: INR 2,001.65 per share

- 2019-04: INR 2,260.35 per share

- 2019-05: INR 2,196.55 per share

- 2019-06: INR 2,227.20 per share

- 2019-07: INR 2,205.70 per share

- 2019-08: INR 2,259.60 per share

- 2019-09: INR 2,099.30 per share

- 2019-10: INR 2,269.65 per share

- 2019-11: INR 2,053.25 per share

- 2019-12: INR 2,161.70 per share

- 2020-01: INR 2,079.05 per share

- 2020-02: INR 2,000.15 per share

- 2020-03: INR 1,826.10 per share

- 2020-04: INR 2,014.45 per share

- 2020-05: INR 1,972.35 per share

- 2020-06: INR 2,082.15 per share

- 2020-07: INR 2,281.40 per share

- 2020-08: INR 2,257.25 per share

- 2020-09: INR 2,492.30 per share

- 2020-10: INR 2,664.85 per share

- 2020-11: INR 2,679.65 per share

- 2020-12: INR 2,862.75 per share

- 2021-01: INR 3,111.35 per share

- 2021-02: INR 2,894.30 per share

- 2021-03: INR 3,177.85 per share

- 2021-04: INR 3,035.65 per share

- 2021-05: INR 3,159.15 per share

- 2021-06: INR 3,345.75 per share

- 2021-07: INR 3,167.45 per share

- 2021-08: INR 3,786.45 per share

- 2021-09: INR 3,775.55 per share

- 2021-10: INR 3,397.75 per share

- 2021-11: INR 3,529.15 per share

- 2021-12: INR 3,738.35 per share

- 2022-01: INR 3,736.25 per share

- 2022-02: INR 3,554.20 per share

- 2022-03: INR 3,739.95 per share

- 2022-04: INR 3,546.70 per share

- 2022-05: INR 3,364.35 per share

- 2022-06: INR 3,267.10 per share

- 2022-07: INR 3,301.90 per share

- 2022-08: INR 3,211.15 per share

- 2022-09: INR 3,004.55 per share

- 2022-10: INR 3,193.15 per share

- 2022-11: INR 3,390.80 per share

- 2022-12: INR 3,256.70 per share

- 2023-01: INR 3,358.70 per share

- 2023-02: INR 3,312.85 per share

- 2023-03: INR 3,205.90 per share

- 2023-04: INR 3,219.25 per share

- 2023-05: INR 3,289.50 per share

- 2023-06: INR 3,302.25 per share

- 2023-07: INR 3,421.45 per share

- 2023-08: INR 3,356.80 per share

- 2023-09: INR 3,528.60 per share

- 2023-10: INR 3,368.75 per share

- 2023-11: INR 3,487.60 per share

- 2023-12: INR 3,793.40 per share

- 2024-01: INR 3,815.95 per share

- 2024-02: INR 4,095.10 per share

- 2024-03: INR 3,876.30 per share

- 2024-04: INR 3,820.65 per share

- 2024-05: INR 3,670.95 per share

- 2024-06: INR 3,904.15 per share

- 2024-07: INR 4,385.35 per share

- 2024-08: INR 4,553.75 per share

- 2024-09: INR 4,268.50 per share

- 2024-10: INR 3,968.45 per share

- 2024-11: INR 4,270.85 per share

- 2024-12: INR 4,094.80 per share

- 2025-01: INR 4,112.40 per share

- 2025-02: INR 3,483.25 per share

- 2025-03: INR 3,606.15 per share

- 2025-04: INR 3,453.70 per share

- 2025-05: INR 3,463.40 per share

- 2025-06: INR 3,462.00 per share

- 2025-07: INR 3,036.80 per share

- 2025-08: INR 3,084.70 per share

- 2025-09: INR 2,888.40 per share

- 2025-10: INR 3,058.00 per share

- 2025-11: INR 3,137.50 per share

- 2025-12: INR 3,206.20 per share

- 2026-01: INR 3,123.90 per share

- 2026-02: INR 2,637.40 per share

- 2026-03: INR 2,358.90 per share

- 2026-04: INR 2,473.90 per share

- 2026-05: INR 2,258.90 per share

- 2026-06: INR 2,031.50 per share

- 2026-07: INR 2,365.60 per share

- 2026-08: INR 2,399.30 per share

- 2026-09: INR 2,050.60 per share

- 2026-10: INR 2,350.00 per share

## Annual estimated value (INR per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:10.030Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.