TCS shares have rallied 12% in the last five trading sessions as investors focus on the Q1 turnaround of IT stocks. The stock is currently quoting at ₹2,443.90, up 1.91% on the day as of 12:44 IST on NSE, marking a 1.49% gain from its previous close of ₹2,254.30. According to latest market data, the stock has added around 20.3% in the last one month and is showing strong momentum with volume of 51.49 lakh shares today, compared to the daily average of 50.19 lakh shares in the last one month. The sustained positive momentum reflects investor confidence in the company's strong quarterly performance and robust AI deal momentum.
The stock's positive movement aligns with TCS's robust quarterly performance for Q1 FY2027. As reported by Moneycontrol, the company's consolidated revenue for the quarter-ending June 2026 stood at ₹72,275 crore, representing a 2.2% sequential and 13.9% year-on-year growth. Net profit for the quarter-ending June 2026 reached ₹13,349 crore, marking a 5% year-on-year increase. Earnings Per Share (EPS) for the quarter-ending June 2026 was reported at ₹36.90. The company's annualized AI revenue now stands at $2.6 billion, highlighting the strong monetization of artificial intelligence initiatives.
As reported by Moneycontrol, TCS has made significant strategic announcements in recent weeks, including the launch of a Gemini Experience Center in Kolkata on July 16, 2026, in partnership with Google Cloud to enhance AI capabilities. The company also launched an Industrial AI Solutions Lab in Bengaluru on July 15, 2026, powered by NVIDIA, further strengthening its position in advanced technology solutions. On July 22, 2026, a TCS study highlighted "Physical AI" becoming mainstream in manufacturing, with significant transformations expected in warehouse and assembly operations. Management commentary suggests a gradual stabilization in North American banking and retail technology budgets, indicating a bottoming out of demand depression and progressive recovery.
According to Business Standard, TCS is trading at a PE ratio of 16.11 based on TTM earnings ending June 2026. The stock is down 19.97% in the last one year, compared to a 2.55% fall in NIFTY and a 12.23% fall in the Nifty IT index. The Nifty IT index of which TCS is a constituent has added around 18.42% in the last one month and is currently quoting at 30,418.35, up 2.38% on the day. The benchmark August futures contract for the stock is quoting at ₹2,436.9, up 1.31% on the day, indicating continued positive sentiment among futures traders.
The stock's performance comes amid broader market challenges, with Foreign Institutional Investors (FIIs) as net sellers, offloading ₹3,892.77 crore on July 24, 2026, while Domestic Institutional Investors (DIIs) provided crucial support with ₹5,453.55 crore in net buying. According to market analysis, the Indian IT sector faces moderate growth projections for fiscal 2026, with larger firms like TCS potentially encountering challenges from macroeconomic conditions. However, AI, cloud, cybersecurity, and data engineering present significant growth avenues, with long-term opportunities for substantial market expansion of US$ 300-400 billion by 2030 recognized despite near-term concerns about AI causing 2-3% annual deflation in traditional IT services.
