TCS’s last share buyback concluded in December 2023. Instead of paying a large special dividend in Q3FY26, CLSA believes the company may opt for a tender offer-style buyback of about ₹20 crore.
Meanwhile, the Infosys board is scheduled to meet today to consider the buyback proposal.
If approved, this will mark Infosys’s fifth share buyback in the last eight years, the first of which occurred in 2017. It would also be the first buyback in three years, with the last one announced in 2022.
CLSA’s target on TCS
CLSA has an ‘Outperform’ rating on TCS, with a price target of ₹4,279, implying a 38% upside from current levels.
While the broader demand commentary remains unchanged from Q1FY26, management sounded upbeat about revenue opportunities from AI, CLSA wrote in its note.
TCS’s management said that overall IT budgets are likely to expand due to AI, creating a net revenue-positive effect for the company.
Out of the 51 analysts covering TCS, 34 have a ‘Buy’ rating, 12 recommend ‘Hold’, and five have a ‘Sell’ rating.
Shares of TCS closed 1.99% higher on Wednesday at ₹3,110. However, the stock remains down 24% year-to-date in 2025.
Infosys, on the other hand, has already rallied 7% (or ₹100) over the last two trading sessions, gaining 5% on Tuesday and another 2% on Wednesday. The stock ended the day at ₹1,532 but is still down 18% year-to-date.
