Street View-India's TCS faces growth, margin pressure as IT spending slows, decision-making lags

Software-services exporter Tata Consultancy Services TCS.NS reported weaker-than-expected quarterly results on Thursday and also warned that uncertainty around U.S. tariffs was prompting clients to rethink discretionary projects

Shares up 0.4% at 3,260 rupees in a volatile session on Friday, fluctuating between gains and losses

Earlier in the session, stock dropped 1.1% in an upbeat broader market

SHORT-TERM DEMAND CHALLENGING; UNCONVINCED ON FY26 EXPECTATION

Jefferies ("hold": PT 3,400 rupees) says growing pressures on discretionary IT spends, delays in decision-making likely to limit growth, margin expansion

Nuvama ("buy": 4,050 rupees) expects demand environment to remain challenging for next 1-2 quarters due to macro uncertainty; but remain positive on medium-to-long term outlook as technology debt continues to be very high for enterprise

Ambit Capital ("sell": PT 3,140 rupees) remains unconvinced on co expectations of FY26 being better than FY25, given co will have to grow at a steep 1.7% per quarter, compared with just 0.5–0.6% in FY24/25

BOBCAPS ("hold": PT 3,072 rupees) says weak start for co in FY26 likely; profitability to improve in FY26 since low-margin BSNL deal shrinks