Tata Consultancy Services (TCS IN) – Analyst Meet Update – Scaling AI to Drive the Next Phase of Growth – BUY
Published on 18 Dec 2025
We attended TCS analyst day, the company demonstrated progress in AI-led services, its approach to make the talent AI-ready, and redefining partner ecosystem to provide measured value to enterprise clients. The company generates ~0.5% (annualized USD 1.5b) of its revenues through AI services, which is growing at a faster pace (around mid-teens QoQ) than the traditional IT Services. Currently, BPM as a function and BFS as a vertical are undergoing major chunks of pilots and experimentations, while other verticals have also joined the bandwagon of late. The AI maturity into business processes and functions would be slower starting with AI assisting humans (L2) to limited human intervention (L4), before it reaches the full autonomy (L5) with self-learning AI agents. TCS is also redefining partnerships beyond Hyperscalers & Enterprise solution providers to engaging proactively with deep-tech and AI native players ecosystem. We retain BUY with TP of Rs. 3,800
