Tata Consultancy Services delivered impressive Q2FY27 results, with net profit surging 15% year-on-year to ₹13,884 crore compared to ₹12,075 crore in Q2FY26, according to The Economic Times. The company also declared an interim dividend of ₹12 per share for FY2026-27. Revenue from operations grew 11.2% YoY to ₹73,188 crore, exceeding Bloomberg estimates of ₹73,108 crore for revenue and ₹13,786 crore for net profit. In constant currency terms, revenue rose 0.5% quarter-on-quarter, while operating margin came in at 24% and net margin stood at 19%. The strong earnings beat drove the stock up over 5% to an intraday high of ₹2,184 on Friday, and TCS shares rallied another 1.5% to ₹2,195 on Monday, extending gains for a second session and rallying 6% over the same period after declaring its Q2 earnings.
Technical analyst Hitesh Tailor from Choice Broking warns that TCS stock trades below key EMAs on daily and weekly charts, as reported by Business Standard. The persistent downward slope of weekly moving averages confirms underlying supply pressure, with minor pullbacks routinely met with selling interest. Analysts expect strong resistance between ₹2,250-2,330 levels, where previous breakdown zones align with declining weekly EMAs. On the downside, the ₹2,000-₹2,020 zone serves as immediate psychological and structural support, with a decisive weekly close below ₹2,000 signaling severe technical breakdown risks toward ₹1,850 and ₹1,750 levels. From a trend perspective, Choice Broking highlights that TCS stock continues to trade below key daily, weekly, and monthly Exponential Moving Averages (EMAs), indicating persistent technical weakness. However, The Economic Times notes that the Nifty IT Index has been consolidating in the 27,613–28,777 range since late September, with the 27,600–27,550 zone likely to act as immediate support.
Derivatives analyst Dharmesh Bhatt from Systematix Institutional Research reports that TCS futures open interest declined by 0.4 lakh to 259.6 lakh shares with no fresh directional build-up ahead of the Q2 results, according to Business Standard. TCS Calls OI rose about 50% to 227 lakh, with the biggest additions at 2,300 CE (+19.2 lakh) and 2,200 CE (+14.1 lakh), indicating writing activity. Puts OI increased 33% to 138 lakh with premiums falling, while the put floor remains at ₹2,000 and ₹2,000 PE levels. Bhatt notes that PCR fell to 0.61 from 0.69, with fresh writing activity at 2,000 to 2,080 strikes. A break above ₹2,150 could lift the stock to ₹2,200 levels, but existing futures and options positions don't support the ₹2,250-2,330 resistance view, with confirmation requiring a decline in 2,100-2,200 Call OI or the stock closing above ₹2,150.
Despite Friday's rally, TCS stock has been a major underperformer in 2026, down nearly 32% on a year-to-date basis at current levels, as reported by Business Standard. The stock has dropped more than 50% from its peak of ₹4,386 in August 2024. Post-Q2 results, analysts at Nomura and Motilal Oswal reiterated their Buy ratings on TCS stock, citing growth visibility from deal bookings and improving international demand. However, analysts caution that the existing futures and options positions don't support the bullish ₹2,250-2,330 resistance view, with confirmation requiring a decline in 2,100-2,200 Call OI or the stock closing above ₹2,150. Goldman Sachs has maintained its Buy rating on TCS with a target price of ₹2,210, though the brokerage noted that EBIT margins remained flat sequentially despite international growth and cut its EBIT margin estimates by up to 20 basis points, while deal win growth also turned negative signalling a subdued revenue growth environment.
