Tata Consultancy Earnings Seen Weighed by Weak Discretionary Spending — Market Talk
Tata Consultancy Services faces earnings hit from likely weak discretionary spending by companies, Elara Securities (India) analysts say in a research report. New tariffs are expected to adversely affect some domestic sectors such as pharmaceuticals. Energy sector spending has decreased owing to policy changes and geopolitical tensions, the analysts say. The IT services provider has highlighted delays in discretionary spending and project starts due to macroeconomic uncertainty and elevated return-on-investment thresholds among customers. The brokerage cuts its FY 2026-2028 earnings estimates for the company by 0.9%-9.8%. It lowers the stock's rating to accumulate from buy and the target price to INR3,770.00 from INR3,970.00. Shares are 1.0% lower at INR3,104.20. (ronnie.harui@wsj.com)