Analysts Cautious About TCS Growth Recovery

TATA CONSULTANCY SERVICES (TCS) is expected to see a slow-paced recovery over the next few quarters, as deal conversions remain sluggish and clients continue to hold back discretionary tech spending, analysts said.

- URVI MALVANIA

While the company has guided for an improvement in international business for FY26, multiple brokerages have flagged weak execution, project delays and a challenging macro environment as key near-term risks.

"The outlook of better growth in FY26 appears a tad optimistic," analysts at Kotak Institutional Equities noted, adding that slippages in healthcare and BFSI continue to be a concern.

Axis Securities presented similar views, saying, "Prevailing uncertainties in large economies continue to pose short-term headwinds to the company's growth prospects."