TCS Share Price Gains 2% After Securing 5-Year NHS Supply Chain Deal; Stock Still 30% Below Peak

TCS share price surged almost 2% on Wednesday after Tata Consultancy Services announced a major five-year digital transformation deal with the NHS Supply Chain in the UK lifting TCS stock in early trade.

TCS NHS Deal Details

According to the official release, TCS will deploy cloud and AI-led solutions to overhaul NHS Supply Chain's IT systems and strengthen operational efficiency.

TCS stated, "To accelerate the value NHS Supply Chain provides to frontline care, TCS will replace legacy systems with a modern Supply Chain ERP solution for faster time-to-market, seamless scalability, and enhanced customer experience. TCS will also transition legacy operations into a product and platform-based IT operating model."

"The IT transformation will impact over 1,000 suppliers and support 8 million+ orders delivered to 17,000 locations across the NHS network. TCS will also help the NHS embed an agile, future-ready organisational mindset, ensuring long-term sustainability and efficiency." according to the exchange filing

TCS Share Price Performance

On Wednesday, TCS shares opened at Rs. 3,097, roughly flat compared to the previous close. Shortly after the stock encountered strong buying interest, hitting an intraday high of Rs. 3,149.90 on the NSE. At the time of writing, TCS share price was trading at Rs. 3,146.80, up 1.93%. The stock has grown 4.36% in the last 30 days but is down 23.49% so far in 2025. TCS shares are currently down 30.13% from 52 Weeks High level.

TCS Ranked Asia's Most Valuable IT Services Brand

In other News Tata Consultancy Services has been recognised as Asia's most valuable IT services brand at the Brand Finance Asia Brand Gala held in Singapore on November 19. Earlier this year, Brand Finance also named TCS the world's second most valuable IT services brand, with a valuation of $21.3 billion.

Strong Q2 FY25 Performance

Tata Consultancy Services reported a healthy rise in both revenue and profit for the quarter ended September 30 i.e Q2 FY25-26. The global IT services leader posted an 8.4% year-on-year rise in consolidated net profit, which increased to Rs. 12,904 crore, compared to Rs. 11,909 crore in the same quarter last year.

Revenue for the quarter also rose by 2.4% year-on-year to Rs. 65,799 crore. Operating performance improved as well, with EBIT margins expanding by 70 basis points to 25.2%, up from 24.5% in the previous June quarter.

Following the earnings announcement, Motilal Oswal Financial Research continued its 'BUY' rating on TCS. The brokerage in its report dated 9th October stated "While management expects FY26 growth to be better than FY25, we believe this guidance is somewhat fuzzy. Regarding the data centre announcement, we await clarity on the capital structure, capex schedule, and other details such as potential rentals and signed MOUs. At present, we do not model data centre investments or related revenue into our forecasts. Valuations are undemanding, and we reiterate our BUY rating on TCS with a target price of Rs. 3,500, implying a 15% potential upside."

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