Tata Consultancy Services Limited (TCS.NS) stock analysis

In our weekly check, Tata Consultancy Services Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 2, red flags: 2.

About Tata Consultancy Services Limited

Tata Consultancy Services Limited is a Technology company (Information Technology Services) based in India, listed on NSE as TCS.NS.

What our checks show for TCS.NS

Red flags

• The gross margin fell by 12.3 points, to 35.5%: costs are rising faster than prices.
• The stock has fallen as much as 66% from a peak. Would you have held through that?

Warning signs

• The net margin fell by 1.8 points over 5 years, to 18.2%: the company keeps less of each sale as profit.
• The dividend takes 78% of profit: little cushion if profit falls.

Strengths

• Net debt is only 0.1x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 53.9 times over.
• Free cash flow is 17.9% of revenue: cash for dividends, buybacks or growth.
• A large company: market value $96.43 billion.
• Beta 0.24: the stock usually moves less than the market.
• Actively traded: about 4.1 million shares a day.

Next earnings report: 2027-01-14

Similar companies

6702.T · 6701.T · HCLTECH.NS · 4307.T · TECHM.NS

Questions

What grade does Tata Consultancy Services Limited (TCS.NS) have?

In our weekly check, Tata Consultancy Services Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 21 pass, warnings: 2, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of TCS.NS stock?

This week's biggest flags for Tata Consultancy Services Limited: Gross margin falling, Deep past fall, Margins falling. In total 4 of 25 checks show a warning or a red flag.

What does Tata Consultancy Services Limited do?

Tata Consultancy Services Limited is a Technology company (Information Technology Services) based in India, listed on NSE as TCS.NS.

When does Tata Consultancy Services Limited report earnings next?

The next earnings report is expected on 2027-01-14. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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