TCS stock slumps! IT firm's shares plunge 33% from lifetime high, down 25% in 2025; amidst layoffs news, will bearish trend continue?
Recently, the tech giant's announcement of large-scale layoffs, with 12,000 employees set to be let go.
Also read:
IT ministry 'closely monitoring' 12,000 job cuts, claims report; IT union calls tech firm's move illegal
Technical indicators point to sustained downward pressure
Despite TCS reporting stable fundamentals and beating earnings estimates in Q1FY26, its stock performance tells a different story. Analysts point to weakening technical signals and broader investor sentiment as key factors behind the persistent decline.
'TCS has broken below a rising trendline on the weekly chart with strong volumes, which signals intensified selling pressure,' said Mandar Bhojane, Equity Research Analyst at Choice Broking, as quoted by Economic Times.
Bonanza's Technical Analyst Drumil Vithlani also noted TCS is nearing support levels last seen in October 2022. 'Long-term investors can consider staggered accumulation between Rs 3,060 and Rs 3,000 with a stop loss at Rs 2,900.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
My Brows Look Fuller Looking Now [See Results]
NULASTIN
Learn More
Undo
The next bounce, if it comes, could aim for Rs 3,270 and Rs 3,415,' he said.
On the fundamentals front, Q1FY26 results were encouraging. Net profit rose 6 per cent year-on-year to Rs 12,760 crore, beating estimates. Revenue climbed 1.3 per cent to Rs 63,437 crore, although constant currency revenue dipped 3.1 per cent—mainly due to the scaled-down BSNL contract.
Operating margin improved by 30 basis points sequentially to 24.5 per cent, with operational cash flow at Rs 12,804 crore.
Attrition stabilised at 13.8 per cent, but international business saw a 0.5 per cent sequential decline.
However, market sentiment took a hit with TCS's announcement to cut 12,000 jobs- about 2 per cent of its workforce- mainly in middle and senior management. The move, tied to internal restructuring and a revised bench policy, echoes a broader trend in the IT industry, which added just 3,847 jobs in Q1.
Despite the turbulence, many analysts remain optimistic.
Motilal Oswal maintains a Buy call with a target of Rs 3,850, while Nuvama sees potential up to Rs 3,950. Antique and Nomura, though slightly trimming estimates, still expect future gains.
Ultimately, TCS's current scenario presents a paradox: technical weakness versus operational resilience. While short-term volatility may continue, analysts suggest the deep correction could offer opportunities for long-term investors willing to wait for a turnaround.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
21 minutes ago
- Hans India
AI disruptions will be brief as reskilling drives new jobs: IT Min
New Delhi/ Bengaluru Disruptionsfrom Artificial Intelligence (AI) will be brief and new jobs will emerge, Karnataka's IT and Biotechnology Minister Priyank Kharge has said, highlighting the state's large-scale reskilling initiatives are underway to prepare talent for new-age technologies. In an interview with PTI, Kharge asserted that Karnataka retains a comfortable lead over others in technology, with strong data and performance vectors backing its position. The state encourages innovation and collaboration, ensuring 'that any entrepreneur or corporation who dreams of making it big globally, starts from Karnataka', he noted. On the issue of disruptions due to AI, the minister said, Nipuna Karnataka, the state's large-scale reskilling and upskilling initiative, aims at safeguarding and future-proofing its talent pool. 'While there might be certain job losses, new jobs will be that is why we need a massive reskilling and upskilling programme. So, there will be disruption, but the disruption will be for a brief while, until we are able to reskill and upskill people,' he said. Nipuna Karnataka is a Rs 300 crore reskilling initiative, industry-driven and industry-focused, with ambitious targets to train talent at scale, he added. In the coming financial year, the state government aims to skill individuals in key areas, like artificial intelligence, cybersecurity, digital forensics, and other technologies, in line with the global tech demands. 'We intend to scale over 5,00,000 people in the coming financial year, in artificial intelligence, cybersecurity, digital forensics, and anything that the industry might need. So, we are closely talking to them through our skill council for emerging technologies, taking their feedback, taking their curriculum, and seeing how we can ensure that we give the most affordable and most talented human resources for them. 'And this programme is just not catering to the local ecosystem, we are catering to the global ecosystem also,' Kharge noted. He said Karnataka retains its lead over others, and data ranging from IT exports to startups and GCCs play, underscores its competitive strengths. 'We are far ahead of the curve when it comes to our neighbours or neighbouring states. So, while we love competition, we are not afraid of it. It also helps us pull up our socks,' he said. As many as 20,000 startups are registered with the state government, he said, adding that of 110 unicorns, more than 45 are from Bengaluru. 'We contribute 21 per cent of the national bioeconomy, and 65 per cent of defence electronics manufacturing happens in Karnataka. And GCCs, we have close to over 800 GCCs and their units, totalling about 1,500,' Kharge said. The same trend is evident in office space demand, real estate leasing, and GCC momentum. 'Last year, we gobbled up close to around 47 per cent of the entire country's real estate for GCCs. This year, just in the last six months, 13.1 million square feet has been given only for GCCs. So, where is the competition? I don't see that,' Kharge said. The minister emphasised that the state's policies are backed by strong, actionable outcomes like the recent Quantum Roadmap. 'We are just not announcing mere policies for the sake of announcing them. So, when we keep the Karnataka quantum roadmap in front, people believe is because over the years, we have managed to build a strong foundation of skills. 'We have topped that with incubators, and we have topped up with centres of excellence across sectors. So, I run more than 25 centres of excellence from agritech to space tech. And through these, we are innovating and inventing. On top of that, we have put budgets. On top of that, we put policies,' Kharge said.
Economic Times
21 minutes ago
- Economic Times
Inox India shares in focus as Q1 PAT rises 19%, revenue up 17% YoY
Inox India also reported several operational and strategic milestones in Q1, including: Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shares of Inox India are likely to attract investor attention on Tuesday, August 5, after the company reported a strong set of earnings for the first quarter of FY26, marked by double-digit year-on-year growth in both profit after tax (PAT) and to the company's Q1 FY26 earnings highlights, PAT rose 18.9% YoY to Rs 61 crore, while revenue grew 16.7% YoY to Rs 352 crore for the quarter ended June 2025. Operating performance remained strong, with EBITDA rising 19.4% YoY to Rs 89 continued to be a key growth driver, contributing Rs 198 crore, or 56% of total revenue, during the quarter.- Launching India's first ultra-high-purity (UHP) ammonia ISO tank container, reinforcing its position in the cryogenic engineering space.- Securing audit approvals from Heineken, the world's second-largest brewery, for its Savli-based stainless-steel keg manufacturing facility.- Winning a prestigious order from ITER (International Thermonuclear Experimental Reactor) for the refurbishment of the Cryostat Thermal Shield, a critical component of nuclear fusion infrastructure.'FY26 has begun on a strong note, with robust order inflows across all divisions. Our Industrial Gases business saw healthy growth, marked by breakthrough orders like India's first UHP Ammonia ISO containers and a pioneering CO₂ battery project. The LNG division continued its growth trajectory with the supply of a large number of LNG fuel tanks to OEMs in India. We are committed to becoming a key catalyst in the LNG mobility space and have therefore laid out plans for capacity expansion to meet rising demand for LNG fuel tanks,' said Deepak Acharya , Chief Executive Officer of Inox of Inox India closed 3% higher at Rs 1,173.80 on BSE.
Hindustan Times
21 minutes ago
- Hindustan Times
Govt reacts to online buzz on ethanol-blended E20 petrol effect on vehicles: ‘No drastic mileage cut'
The central government has reacted to social media discussion and theories that E20 petrol — blended with 20 per cent ethanol — causes a drastic drop in mileage, especially in cars, and causes damage to the fuel tank and engine. Benefits of ethanol include improvement in the engine performance and ride quality in modern vehicles, says ministry.(Pixabay/Representative Image) The ministry of petroleum and natural gas issued a statement that such allegations are not backed by science, and that the impact on fuel efficiency, if any, is only marginal. How E20 petrol affects mileage, performance In a social media post, the ministry said mileage may drop by 1-2 per cent in vehicles that are originally designed for E10 petrol but later calibrated for E20; in other vehicles, the drop could be around 3-6 per cent. However, better engine tuning and use of E20-compatible parts can cut this drop, it said. E20-compliant vehicles with upgraded components have been available since April 2023, the Society of Indian Automobile Manufacturers (SIAM) has said, ANI reported. On theories that E20 petrol causes corrosion of the fuel tank and related parts, the ministry said minor replacements such as rubber parts or gaskets may be needed after 20,000 to 30,000 kms in some older vehicles, 'but these are inexpensive and usually done during regular servicing'. But benefits of ethanol include improvement in the engine performance and ride quality in modern vehicles, it added. Why use E20 petrol at all? Studies have found that ethanol, a renewable fuel made from sugarcane and maize, emits 65 per cent and 50 per cent less greenhouse gases, respectively, compared to petrol, the ministry stressed. An 80:20 mix of petrol and ethanol thus reduces CO2 emissions. The government noted that ethanol blending in petrol also boosts India's energy security by reducing the reliance on crude oil imports. India produces ethanol from surplus rice, damaged foodgrains, and agricultural waste too. Since 2014-15, the country has saved over ₹1.4 lakh crore in foreign exchange due to ethanol substitution. It has also led to payments of over Rs. 1.2 lakh crore to farmers, the ministry said.
