Brokerages TCS Post Q2: Nomura Targets Street-High ₹2,630, Citi Sell at ₹1,840

Following the declaration of Tata Consultancy Services' second-quarter earnings, leading global brokerages have presented divergent outlooks on the IT bellwether's forward trajectory. While institutional firms such as Goldman Sachs, Nomura, and JPMorgan maintain positive recommendations anchored by healthy deal execution and talent expansion, others including Citi, CLSA, and HSBC have sounded cautionary notes over margin recovery and medium-term revenue visibility across FY27 to FY29. The evaluation across research desks centers on headcount recovery, artificial intelligence commercialization crossing $3 billion, contract pipeline conversions, and sticky operating overheads.

Goldman Sachs, Nomura, and JPMorgan Maintain Bullish Stance

Japanese brokerage Nomura issued the street's most optimistic projection, assigning a "Buy" recommendation with a target price of ₹2,630 per share on the back of solid contract bookings, though it cautioned that reinvestment priorities could cap near-term margin expansion. Goldman Sachs reiterated its "Buy" stance with a target of ₹2,210, pointing out that three straight quarters of net hiring and broad-based regional execution offset margin drag from deflationary pressures, pricing competition, and muted net new deal momentum. Concurrently, JPMorgan retained an "Overweight" rating with a target price of ₹2,300 per share, describing quarterly margins and operating trajectory as largely inline while highlighting the pending closure of the large-scale MHP transaction as a vital pipeline milestone to monitor.

Citi Issues Sell Call While HSBC and CLSA Recommend Hold

Taking the most cautious perspective among global houses, Citi maintained a "Sell" rating with a street-low target price of ₹1,840 per share, citing sluggish 2.8% year-on-year constant currency revenue growth and an unexpected 120-basis-point annual erosion in EBIT margins despite a 9% depreciation in the Indian rupee. Citi also trimmed its FY27–FY29 earnings forecasts by 1–2% due to a 3.3% dip in trailing twelve-month contract conversions. Meanwhile, HSBC maintained a "Hold" rating with a ₹2,350 target, observing that strength across banking and technology was tempered by lingering softness in US consumer and energy verticals. CLSA similarly placed a "Hold" rating on the counter with a target of ₹2,038, lowering its EPS estimates by 1–2% as elevated subcontracting costs cloud the timeline for TCS to climb back into its historic 26% to 28% EBIT margin corridor.