TCS slumps 33% from the summit. Is there an opportunity to improve?

Tata Consultancy Services (TCS), India’s largest IT company, is facing a sharp connection between its fundamentals and its stock prices. The stock has sinked nearly 33% since its lifetime, which is falling 25% in 2025 alone-however, the company posted the expected Q1FY26 better and announced a steady dividend payment.

Technical signals

From a technical point of view, the stock is under significant pressure.

“The TCS has broken down the growing trendline with strong volumes on the weekly chart, indicating that the pressure is intensified,” said Mander Bhojan, the equity research analyst of the selection broking. “RSI is below 28.8, which puts the stock in the oversold area, but the trend downward is intact for now.”

Bhoja advises investors to wait for reversal signals before entering. If the recovery procurement is set, then it is possible to get Rs. With 3,500-3,800, Rs. See immediate support at Rs 3,000 and 2,800 rupees.

Bonanza’s technical analyst Dramil Vithla also points out that TCS is close to its October Catber 2022 – a complex support zone. He said that long -term investors could consider the stuck accumulation between Rs 3,060605 to Rs 3,000 to stop at Rs 2,900. The latter bounce, if comes, can aim for Rs 3,270 and Rs 3,415. “

Q1 numbers

For TCSA Q1FY26 Rs. A net profit of Rs 12,760 crore was recorded, which is 6% annually and above the street expectations. Revenue increased 1.3% to Rs. 63,437 crore, but the continuous currency figure has dropped 3.1%, mainly due to a sharp ramp-down in the BSNL agreement.

The margin extended 30 BPS separately to 24.5%, and the net cash from the operation was healthy at Rs. 12,804 crore – 100.3%of net income. The attrition was 13.8%, indicating a relatively stable workforce.

Nevertheless, BSNL hit 0.5% in the international business due to hits and current macro uncertainties, which was a concern published by many brokerage.

Smart sparks fresh discomfort

The TCSA had another effect after the TCS has planned to release more than 12,000 employees, 2% of its employees, citing weak demands in the AI -led disruptions and certain ICALS. This sapphire, mostly affecting central and senior-level employees, is part of what the company describes the direction of becoming a “future-ready” organization.

This follows criticism on the newly revised “bench policy” of TCS, which puts employees under pressure to stay billy. Industry -wide, rental has slowed down, the top six IT companies have added only 3,847 people to Q1, which is 72% below the previous quarter.

Brokerage still sees a long -term value

Despite the bearish chart setup and the recent workforce cuts, most brokerage is booming on TCS pointing to its attractive valuation and strong fundamentals.

Motilal Oswal will pay Rs. The purchase was maintained with a target of 3,850, noting that the execution on BSNL is a worrying, but encouraging margin expansion and cash flow.

Nuwama gave his target a little below Rs. 3,950 was done but expects to grow as Macro’s condition improves.

Both Antique and Nomura lowered their goals, but still look up to the current levels, citing long -term visibility and cost control.

So, is this an opportunity?

TCS is in a difficult place, technically weak, but basic stable. While short -term motion can be negative, analysts believe that long -term investors can benefit from the accumulation stuck at key support level.

The question is not whether TCS is now struggling; It is clear from the price. The big question is whether the improvement has gone a long way to the company’s main strength.

If the fundamentals have, and the global tech cycle improves, this can really be one of those moments where fear creates a chance.

(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)