Analysts see TCS gaining with demand recovery in H2

While not ruling out concerns relating to demand and growth outlook, brokerages are broadly optimistic that IT major Tata Consultancy Services (TCS) is well positioned for recovery in the coming quarters driven by AI/GenAI projects and recent deal ramp-ups.

The major concerns relate to the decline in revenues from North America and Latin America, which fell by 1.7% and 3.2% quarter-on-quarter respectively. North America alone contributes nearly 50% to TCS’s revenue each quarter.