TCS shares climbed as much as 4 percent to an intraday peak of Rs 2,133.30 on Friday after the company surpassed market forecasts for its first-quarter results. Motilal Oswal maintained a buy rating with a target price of Rs 2,350, pointing to 15 percent upside potential. Net profit increased 5 percent year on year to Rs 1,334.9 crore, while revenue grew 14 percent to Rs 7,227.5 crore. Operating margin stood at 24 percent and net margin at 19.2 percent. The firm also announced a dividend of Rs 12 per share. The broker noted expectations of improved demand in the second quarter due to a technology backlog and stronger client discussions, though evidence of recovery remains limited. Geopolitical tensions, tariff concerns and cautious spending continue to affect decisions. Management highlighted early signs of demand recovery and an optimistic outlook for the next quarter. SG&A costs rose about 16 percent in dollar terms, mainly from employee expenses and investments. A cost reclassification had no effect on total expenses or margins. Deal activity showed only a slight shift toward new transformative contracts, with one mega deal signed this quarter.
