Synopsis:
A Tata stock is in focus after reporting a sharp turnaround in Q1FY26 earnings, with analysts maintaining a cautious outlook.
A small-cap Tata stock is in the spotlight today following the announcement of its Q1FY26 financial results. Check the article below to know about their performance and future target set by the analyst.
With a market capitalisation of Rs. 24,253 crore, the shares of Tata Chemicals Ltd were trading at Rs. 952, up by 1.13 percent from its previous closing price of Rs. 941.40.
Q1FY26 Results
Tata Consultancy Services (TCS) reported Rs. 3,719 crore in revenue for the first quarter of FY26, a slight 1.84 percent decrease over the Rs. 3,789 crore for the same period in FY25. However, from Rs. 3,509 crore in Q4 FY25, revenue increased by about 5.98 percent sequentially.
The EBITDA of the company for Q1FY26 is Rs. 649, up by 98.47 percent from Q4FY25 of Rs. 327 crore and from Rs. 574 crore in Q1FY25, it increased by 13.06 percent. Whereas EBITDA Margin increased to 17 percent in the first quarter from 9 percent in Q4FY25 and 15 percent from Q1FY25.
The consolidated net profit for Q1 FY26 stood at Rs. 316 crore, marking a sharp turnaround from a Rs. 49 crore loss in the previous quarter and a 66.32 percent year-on-year increase from Rs. 190 crore in Q1 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 9.89 in Q1 FY26 from Rs. 5.89 in Q1 FY25.
Management View
According to TCS CEO K. Krithivasan, a fall in demand was caused due to geopolitical and global economic uncertainties. New services did well, though, and the business closed a lot of deals during the quarter. With AI-driven business transformation, vendor consolidation, and cost optimization, TCS keeps assisting its clients.
About the company
Founded in 1939, Tata Chemicals Ltd. is a multinational provider of sustainable chemistry solutions renowned for its decades of experience and science-driven innovation. It has operations on four continents, runs three R&D centers and 15 manufacturing facilities, and has 146 patents. With the support of Tata values, its 4,500+ employees are committed to providing long-term, client-focused solutions. With major international operations in the USA, UK, and Kenya, the company and its subsidiaries produce and export basic and specialty chemistry products, mainly soda ash, industrial salt, and related goods.
Analyst Outlook
Morgan Stanley has kept its rating of Tata Chemicals at Underweight, with a target price of ₹839. With margins above expectations in India, the US, and the UK, the company delivered a strong beat to consensus estimates despite missing volumes. Notably, the Basic Chemistry segment’s EBITDA per ton increased 66% from quarter to quarter, indicating increased operational effectiveness.
Written By Akshay Sanghavi
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