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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Ujjaini Dutta
BENGALURU, Oct 9 (Reuters Breakingviews) - Few people know Tata Consultancy as well as N Chandrasekaran. He spent three decades at the $78 billion outsourcer, including eight years as CEO before becoming its chair and also taking charge of Tata Sons, the holding company of the wider Indian conglomerate. But with Chandra now at the centre of a power struggle at the salt-to-steel group, concerns over his bandwidth to steer the IT giant through AI disruption will surface.
The company's latest quarterly earnings on Thursday underscore the problem. Revenue for the three months to the end of September grew to about 732 billion rupees ($7.6 billion), up just 2.8% in constant currency terms. Though its annualised AI services revenue jumped 19% to $3.1 billion from the preceding three months, it accounts for just 10% of the top line. Tata Consultancy's TCS.NS deal pipeline at $9.6 billion was down 4% year-on-year. The net margin contracted 60 basis points to 19%.
To shore up growth, Chandra has stepped up his direct involvement in recent months. That has coincided with a flurry of unusual deals. In August, Tata Consultancy acquired Porsche's P911_p.DE automotive and consulting unit. Last week, it took over US consumer electronics retailer Best Buy’s BBY.N global capability centre in India. The IT firm has also pivoted into capital-intensive investments by building data centres, with OpenAI as one of the customers.
For Chandra to be a hands-on chair while the company confronts the AI challenge makes sense. He knows the company well, and Tata Consultancy is the conglomerate's cash engine, accounting for 89% of Tata Sons' profit for the 2026 financial year. Problem is, he is also chair at at least seven other group companies including Tata Steel TISC.NS, Tata Motors <TAMO.NS, TATM.NS, Tata Power TTPW.NS and Air India. With both the airline and the IT group in need of a big reset, Chandra already looked spread thin.
Now he's locked in an all-out war with Noel Tata, chair of Tata Trusts, which owns 66% of Tata Sons. Not only does that limit the time Chandra has to focus on the operating companies but it also raises a question mark over how long he'll be around to try. Tata Consultancy investors appear to favour him staying: shares fell when his position looked most threatened by the trusts and rebounded after Chandra dug in his heels.
Either way, it leaves K Krithivasan squarely with the job of seeing Tata Consultancy through the AI disruption and emerging from his predecessor's shadow. Since taking over as CEO in 2023, around the time the new tech cycle began disrupting IT services firms, Tata Consultancy's shares have lagged Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS. The shares rallied as much as 4% on Friday morning on faster AI revenue growth but that looks through a rather obvious key-man risk.
https://www.reuters.com/graphics/BRV-BRV/akpelnoaqvr/chart.png
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Tata Consultancy Services on October 8 reported revenue of 731.88 billion Indian rupees ($7.6 billion) in the quarter to the end of September 2026, up 11% year-on-year, or 2.8% in constant currency terms.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Ujjaini Dutta
BENGALURU, Oct 9 (Reuters Breakingviews) - Few people know Tata Consultancy as well as N Chandrasekaran. He spent three decades at the $78 billion outsourcer, including eight years as CEO before becoming its chair and also taking charge of Tata Sons, the holding company of the wider Indian conglomerate. But with Chandra now at the centre of a power struggle at the salt-to-steel group, concerns over his bandwidth to steer the IT giant through AI disruption will surface.
The company's latest quarterly earnings on Thursday underscore the problem. Revenue for the three months to the end of September grew to about 732 billion rupees ($7.6 billion), up just 2.8% in constant currency terms. Though its annualised AI services revenue jumped 19% to $3.1 billion from the preceding three months, it accounts for just 10% of the top line. Tata Consultancy's TCS.NS deal pipeline at $9.6 billion was down 4% year-on-year. The net margin contracted 60 basis points to 19%.
To shore up growth, Chandra has stepped up his direct involvement in recent months. That has coincided with a flurry of unusual deals. In August, Tata Consultancy acquired Porsche's P911_p.DE automotive and consulting unit. Last week, it took over US consumer electronics retailer Best Buy’s BBY.N global capability centre in India. The IT firm has also pivoted into capital-intensive investments by building data centres, with OpenAI as one of the customers.
For Chandra to be a hands-on chair while the company confronts the AI challenge makes sense. He knows the company well, and Tata Consultancy is the conglomerate's cash engine, accounting for 89% of Tata Sons' profit for the 2026 financial year. Problem is, he is also chair at at least seven other group companies including Tata Steel TISC.NS, Tata Motors <TAMO.NS, TATM.NS, Tata Power TTPW.NS and Air India. With both the airline and the IT group in need of a big reset, Chandra already looked spread thin.
Now he's locked in an all-out war with Noel Tata, chair of Tata Trusts, which owns 66% of Tata Sons. Not only does that limit the time Chandra has to focus on the operating companies but it also raises a question mark over how long he'll be around to try. Tata Consultancy investors appear to favour him staying: shares fell when his position looked most threatened by the trusts and rebounded after Chandra dug in his heels.
Either way, it leaves K Krithivasan squarely with the job of seeing Tata Consultancy through the AI disruption and emerging from his predecessor's shadow. Since taking over as CEO in 2023, around the time the new tech cycle began disrupting IT services firms, Tata Consultancy's shares have lagged Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS. The shares rallied as much as 4% on Friday morning on faster AI revenue growth but that looks through a rather obvious key-man risk.
https://www.reuters.com/graphics/BRV-BRV/akpelnoaqvr/chart.png
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Tata Consultancy Services on October 8 reported revenue of 731.88 billion Indian rupees ($7.6 billion) in the quarter to the end of September 2026, up 11% year-on-year, or 2.8% in constant currency terms.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
Oct 8 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS EXEC SAYS DEMAND ENVIRONMENT HAS NOT MATERIALLY CHANGED SINCE Q1 - CONF CALL
TCS EXEC SAYS DISCRETIONARY SPENDS STILL UNDER PRESSURE
TCS EXEC SAYS GROWTH MOMENTUM TO CONTINUE IN MEDIUM TERM BASED ON DEAL WINS, CLIENT CONVERSIONS
TCS EXEC SAYS ANTICIPATE MARGIN HEADWINDS RELATED TO SEASONALITY, ACQUISITION-RELATED DILUTION IN H2
TCS EXEC: BANKING, MANUFACTURING AND LIFESCIENCES VERTICALS LEADING IN TERMS OF AI ADOPTION
TCS EXEC: DATA CENTER REVENUES WILL BEGIN TO COME IN AFTER 18-24 MONTHS
TCS EXEC: ONBOARDED 10,000 CAMPUS GRADUATES IN Q2
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];))
Oct 8 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS EXEC SAYS DEMAND ENVIRONMENT HAS NOT MATERIALLY CHANGED SINCE Q1 - CONF CALL
TCS EXEC SAYS DISCRETIONARY SPENDS STILL UNDER PRESSURE
TCS EXEC SAYS GROWTH MOMENTUM TO CONTINUE IN MEDIUM TERM BASED ON DEAL WINS, CLIENT CONVERSIONS
TCS EXEC SAYS ANTICIPATE MARGIN HEADWINDS RELATED TO SEASONALITY, ACQUISITION-RELATED DILUTION IN H2
TCS EXEC: BANKING, MANUFACTURING AND LIFESCIENCES VERTICALS LEADING IN TERMS OF AI ADOPTION
TCS EXEC: DATA CENTER REVENUES WILL BEGIN TO COME IN AFTER 18-24 MONTHS
TCS EXEC: ONBOARDED 10,000 CAMPUS GRADUATES IN Q2
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];))
By Jayshree P Upadhyay
MUMBAI, Oct 6 (Reuters) - Four trustees of the Tata charities that control the group have accused two fellow trustees of breaking with their long-held opposition to listing Tata Sons, two sources familiar with a letter sent on Monday said, deepening a dispute at the top of the $277 billion Tata empire.
Tata Sons, the holding company of 26 publicly listed Tata Group companies, is at the centre of a dispute with Tata Trusts, which owns 66% of the company.
In the letter to trustees Venu Srinivasan and Vijay Singh, Noel Tata, his son Neville Tata, senior lawyer Darius Khambata and longtime Tata executive Bhaskar Bhat said exploring ways to keep Tata Sons unlisted was consistent with positions previously approved by the seven charitable trusts that control the company, the sources, who read out contents of the letter to Reuters, said.
The letter was dated October 5, they added. The sources declined to be named as the contents of the letter are not public.
Srinivasan and Singh did not immediately respond to text messages seeking comment. A spokesperson for Tata Trusts did not respond to an email seeking comments.
The authors of the letter have argued the issue of keeping Tata Sons unlisted had been debated and endorsed on multiple occasions and said a recent proposal to restructure Tata Sons was being considered after India's central bank rejected the conglomerate's request for an exemption from rules that would require it to list, the two sources said.
"They also said that trust was not interfering in the affairs of Sons and only voicing opinions on company's listing as controlling shareholders," one of the two sources said.
Reuters reported last week that fault lines had emerged among trustees over proposals that could allow Tata Sons to avoid a stock market listing, while separate complaints have also raised broader governance concerns within the trusts.
(Reporting by Jayshree P Upadhyay; Editing by Nivedita Bhattacharjee)
(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))
By Jayshree P Upadhyay
MUMBAI, Oct 6 (Reuters) - Four trustees of the Tata charities that control the group have accused two fellow trustees of breaking with their long-held opposition to listing Tata Sons, two sources familiar with a letter sent on Monday said, deepening a dispute at the top of the $277 billion Tata empire.
Tata Sons, the holding company of 26 publicly listed Tata Group companies, is at the centre of a dispute with Tata Trusts, which owns 66% of the company.
In the letter to trustees Venu Srinivasan and Vijay Singh, Noel Tata, his son Neville Tata, senior lawyer Darius Khambata and longtime Tata executive Bhaskar Bhat said exploring ways to keep Tata Sons unlisted was consistent with positions previously approved by the seven charitable trusts that control the company, the sources, who read out contents of the letter to Reuters, said.
The letter was dated October 5, they added. The sources declined to be named as the contents of the letter are not public.
Srinivasan and Singh did not immediately respond to text messages seeking comment. A spokesperson for Tata Trusts did not respond to an email seeking comments.
The authors of the letter have argued the issue of keeping Tata Sons unlisted had been debated and endorsed on multiple occasions and said a recent proposal to restructure Tata Sons was being considered after India's central bank rejected the conglomerate's request for an exemption from rules that would require it to list, the two sources said.
"They also said that trust was not interfering in the affairs of Sons and only voicing opinions on company's listing as controlling shareholders," one of the two sources said.
Reuters reported last week that fault lines had emerged among trustees over proposals that could allow Tata Sons to avoid a stock market listing, while separate complaints have also raised broader governance concerns within the trusts.
(Reporting by Jayshree P Upadhyay; Editing by Nivedita Bhattacharjee)
(([email protected]; 9920092491; Reuters Messaging: Twitter: @jaysh88))
Adds details, comments and context from paragraph 2 onwards
Oct 5 (Reuters) - India's Nifty IT Index .NIFTYIT rose roughly 1.6% on Monday after IT services firm Accenture ACN.N forecast stronger-than-expected annual revenue growth, lifting sentiment toward the sector and easing concerns that AI-driven disruption could dent technology spending.
Accenture's results, often viewed as a bellwether for Indian IT companies, come as investors grapple with the implications of AI for the $315 billion sector.
While advances in AI have raised concerns that automation could disrupt the industry's labour-intensive business model, brokerages increasingly view enterprise-scale adoption of the technology as a major new growth opportunity as companies move beyond pilot projects and deploy AI across business functions.
Persistent Systems PERS.NS, Mphasis Limited MBFL.NS, Wipro WIPR.NS and Tata Consultancy Services TCS.NS were among the top gainers in the index on Monday, rising 3.1%, 1.1%, 2.1%, and 2.1%, respectively.
"For Indian IT services, elevated booking growth and continued revenue conversion, particularly in outsourcing, provide a positive read-through on enterprise IT spending," according to PL Capital analysts.
The Nifty IT index pared early gains and was up 0.4% as of 10:34 a.m. IST.
Accenture's comments on an increase in smaller deals and improving conversion of deal wins into revenue were seen as positive for Indian IT firms, signalling healthier demand and stronger execution.
"The sector (Indian IT services) is positioned for a gradual growth improvement as technology budgets normalise, while AI creates a new multi-year spending opportunity," says analysts at Centrum Institutional Research.
The IT index has fallen 24.5% year-to-date.
(Reporting by Saikeerthi in Bengaluru; Editing by Sherry Jacob-Phillips)
(([email protected]; (+91) 8296756080))
Adds details, comments and context from paragraph 2 onwards
Oct 5 (Reuters) - India's Nifty IT Index .NIFTYIT rose roughly 1.6% on Monday after IT services firm Accenture ACN.N forecast stronger-than-expected annual revenue growth, lifting sentiment toward the sector and easing concerns that AI-driven disruption could dent technology spending.
Accenture's results, often viewed as a bellwether for Indian IT companies, come as investors grapple with the implications of AI for the $315 billion sector.
While advances in AI have raised concerns that automation could disrupt the industry's labour-intensive business model, brokerages increasingly view enterprise-scale adoption of the technology as a major new growth opportunity as companies move beyond pilot projects and deploy AI across business functions.
Persistent Systems PERS.NS, Mphasis Limited MBFL.NS, Wipro WIPR.NS and Tata Consultancy Services TCS.NS were among the top gainers in the index on Monday, rising 3.1%, 1.1%, 2.1%, and 2.1%, respectively.
"For Indian IT services, elevated booking growth and continued revenue conversion, particularly in outsourcing, provide a positive read-through on enterprise IT spending," according to PL Capital analysts.
The Nifty IT index pared early gains and was up 0.4% as of 10:34 a.m. IST.
Accenture's comments on an increase in smaller deals and improving conversion of deal wins into revenue were seen as positive for Indian IT firms, signalling healthier demand and stronger execution.
"The sector (Indian IT services) is positioned for a gradual growth improvement as technology budgets normalise, while AI creates a new multi-year spending opportunity," says analysts at Centrum Institutional Research.
The IT index has fallen 24.5% year-to-date.
(Reporting by Saikeerthi in Bengaluru; Editing by Sherry Jacob-Phillips)
(([email protected]; (+91) 8296756080))
Top six firms' revenue growth seen at 0.7% to 3.5% quarter-on-quarter, Jefferies says
Infosys could cut upper end of 1.5% to 3% annual revenue growth forecast to 2.5%, Kotak says
HCLTech, Tech Mahindra to do well, Wipro may lag
Organic growth seen weak despite acquisition, deal ramp-ups
Nifty IT drops 27% so far this year, lagging 13.4% Nifty fall
By Bharath Rajeswaran and Haripriya Suresh
Oct 1 (Reuters) - India's top IT companies are set to report another quarter of weak earnings and could trim their annual revenue growth forecasts, five brokerages said, as AI-driven pricing pressure and tepid spending by clients bite.
The rise of AI-based technology has battered the $315-billion information technology sector, especially vulnerable because of its reliance on billable hours, forcing companies to rejig business models and offer steep discounts. The sector has been among the market's worst performers over the past year.
"AI-led deflation has more legs to go and demand environment is not improving," Jefferies said in a note on Tuesday, citing additional pressure from higher oil prices and interest rates.
India's top IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on October 8, with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS reporting later this month.
IT companies typically post strong performance in the first two quarters of the fiscal year helped by higher billing days and project starts. However, first-quarter results were muted and expectations from the second are similarly subdued.
The industry, which employs nearly 6 million in the world's most populous country, is expected to report its weakest sequential performance in three years for the July-September quarter, according to Jefferies, with revenue growth projected at 0.7% to 3.5% quarter-on-quarter for the top six firms.
Year-on-year, analysts expect revenue to rise about 10% in rupee terms.
While acquisitions and deal ramp-ups could boost performance for some large companies, organic revenue growth is expected to be weak. The country's largest IT firms are projected to report lacklustre growth, after stripping out currency fluctuations.
The Nifty IT .NIFTYIT has dropped about 27% in 2026 so far, lagging the benchmark Nifty 50's .NSEI 13.4% drop.
With demand conditions largely unchanged since the last quarter, investors will focus on annual revenue growth forecasts.
Infosys is expected to trim the upper end of its 1.5% to 3% revenue growth forecast to 2.5%, analysts at Kotak said. Jefferies expects a sharper cut, to 0.5% to 2%.
Brokerages expect HCLTech HCLT.NS and Tech Mahindra TECHM.NS to lead among the larger companies, while Wipro WIPR.NS is likely to lag.
Margins may improve modestly as rupee depreciation offsets some pricing pressure, though foreign exchange hedging losses could weigh on profit at Tech Mahindra, Coforge COFO.NS and Hexaware HEXW.NS.
(Reporting by Bharath Rajeswaran and Haripriya Suresh in Bengaluru; Editing by Jochelle Mendonca)
(([email protected]; +91 9769003463;))
Top six firms' revenue growth seen at 0.7% to 3.5% quarter-on-quarter, Jefferies says
Infosys could cut upper end of 1.5% to 3% annual revenue growth forecast to 2.5%, Kotak says
HCLTech, Tech Mahindra to do well, Wipro may lag
Organic growth seen weak despite acquisition, deal ramp-ups
Nifty IT drops 27% so far this year, lagging 13.4% Nifty fall
By Bharath Rajeswaran and Haripriya Suresh
Oct 1 (Reuters) - India's top IT companies are set to report another quarter of weak earnings and could trim their annual revenue growth forecasts, five brokerages said, as AI-driven pricing pressure and tepid spending by clients bite.
The rise of AI-based technology has battered the $315-billion information technology sector, especially vulnerable because of its reliance on billable hours, forcing companies to rejig business models and offer steep discounts. The sector has been among the market's worst performers over the past year.
"AI-led deflation has more legs to go and demand environment is not improving," Jefferies said in a note on Tuesday, citing additional pressure from higher oil prices and interest rates.
India's top IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on October 8, with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS reporting later this month.
IT companies typically post strong performance in the first two quarters of the fiscal year helped by higher billing days and project starts. However, first-quarter results were muted and expectations from the second are similarly subdued.
The industry, which employs nearly 6 million in the world's most populous country, is expected to report its weakest sequential performance in three years for the July-September quarter, according to Jefferies, with revenue growth projected at 0.7% to 3.5% quarter-on-quarter for the top six firms.
Year-on-year, analysts expect revenue to rise about 10% in rupee terms.
While acquisitions and deal ramp-ups could boost performance for some large companies, organic revenue growth is expected to be weak. The country's largest IT firms are projected to report lacklustre growth, after stripping out currency fluctuations.
The Nifty IT .NIFTYIT has dropped about 27% in 2026 so far, lagging the benchmark Nifty 50's .NSEI 13.4% drop.
With demand conditions largely unchanged since the last quarter, investors will focus on annual revenue growth forecasts.
Infosys is expected to trim the upper end of its 1.5% to 3% revenue growth forecast to 2.5%, analysts at Kotak said. Jefferies expects a sharper cut, to 0.5% to 2%.
Brokerages expect HCLTech HCLT.NS and Tech Mahindra TECHM.NS to lead among the larger companies, while Wipro WIPR.NS is likely to lag.
Margins may improve modestly as rupee depreciation offsets some pricing pressure, though foreign exchange hedging losses could weigh on profit at Tech Mahindra, Coforge COFO.NS and Hexaware HEXW.NS.
(Reporting by Bharath Rajeswaran and Haripriya Suresh in Bengaluru; Editing by Jochelle Mendonca)
(([email protected]; +91 9769003463;))
Sept 29 (Reuters) - Shares of Tata group companies fell on Tuesday after Tata Trusts proposed a restructuring of Tata Sons in a bid to sidestep a Reserve Bank of India requirement for the conglomerate to list its shares.
(Reporting by Kashish Tandon in Bengaluru; Editing by Subhranshu Sahu)
(([email protected]; 8800437922;))
Sept 29 (Reuters) - Shares of Tata group companies fell on Tuesday after Tata Trusts proposed a restructuring of Tata Sons in a bid to sidestep a Reserve Bank of India requirement for the conglomerate to list its shares.
(Reporting by Kashish Tandon in Bengaluru; Editing by Subhranshu Sahu)
(([email protected]; 8800437922;))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Sept 28 (Reuters Breakingviews) - A power struggle at India's Tata group may have another victim in Deutsche Bank. The German lender helped unlisted builder Shapoorji Pallonji group raise pricey debt which it's now trying to offload at a premium. That taps into hopes for an imminent listing of Tata's holding company, Tata Sons. Such an outcome will shore up the ability of SP group, owner of an 18% stake, to honour its borrowings in excess of 541 billion rupees ($5.64 billion). But the timing is less promising than it seems.
The 160-year-old construction group behind Mumbai's iconic Taj Mahal Palace Hotel ran into financial difficulties in 2020, as Covid disrupted cash flows. Its problems intensified through the last six years, pushing the SP group towards higher-cost funding sources.
Deutsche latched onto the lending opportunity as did private credit funds which have been warming up to India. In July, when SP group entities issued bonds worth 214 billion rupees, sole arranger Deutsche scooped up 29% of the offer, according to data from Tracxn. In May 2025, SP group raised 286 billion rupees, roughly $3 billion at current exchange rates, from Ares Management ARES.N, BlackRock BLK.N and others in India's largest ever onshore private credit transaction. Each of those notes is backed by shares in Tata Sons.
Now Deutsche is trying to offload three-year zero-coupon notes issued by Eqyizen Investment, a unit of the SP group, at a yield of up to 18.75%, down from 18.95% in July, according to a Reuters report citing unnamed merchant bankers. Yet the spat at Tata group which spilled into public this month muddies, rather than improves, SP's group's ability to honour its borrowings and monetise its Tata Sons holding which might be worth at least 250 billion rupees.
Although Tata Sons' chair, N. Chandrasekaran, supports a listing for the holding company he leads, the move is being forced upon the conglomerate by the Reserve Bank of India. And Noel Tata, chair of the Tata Trusts which owns 65% of Tata Sons, fiercely opposes both a listing and Chandra's leadership position at the holding company.
That could entangle the duo in legal battles and delay any capital markets debut. The power struggle also ought to make SP group's credit and its Tata Sons stake less attractive to investors and lenders because of the sheer official meddling in the Indian conglomerate.
The SP group is already seeking an extension to payments worth 35 billion rupees ($365 million) due on September 30. Until now, it has been able to keep deferring and gorging on increasingly expensive debt to stay afloat. But the struggle at Tata group could make it harder for SP group to refinance. That provides a strong incentive for Deutsche and other lenders to try and monetise their positions.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Deutsche Bank and other investors are offering rupee-denominated bonds of a Shapoorji Pallonji group firm at a premium, encouraged by the construction group's plans to sell part of its stake in Tata Sons, Reuters reported on September 21, citing three unnamed merchant bankers.
The SP group is also planning to seek an extension to a debt repayment worth around 35 billion rupees, which is due on September 30, the report added.
Tata Trusts on September 17 said the SP group proposed to sell part of its 18% stake worth 250 billion rupees in Tata Sons, the unlisted holding company of the wider steel-to-IT Tata conglomerate.
(Editing by Una Glani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Sept 28 (Reuters Breakingviews) - A power struggle at India's Tata group may have another victim in Deutsche Bank. The German lender helped unlisted builder Shapoorji Pallonji group raise pricey debt which it's now trying to offload at a premium. That taps into hopes for an imminent listing of Tata's holding company, Tata Sons. Such an outcome will shore up the ability of SP group, owner of an 18% stake, to honour its borrowings in excess of 541 billion rupees ($5.64 billion). But the timing is less promising than it seems.
The 160-year-old construction group behind Mumbai's iconic Taj Mahal Palace Hotel ran into financial difficulties in 2020, as Covid disrupted cash flows. Its problems intensified through the last six years, pushing the SP group towards higher-cost funding sources.
Deutsche latched onto the lending opportunity as did private credit funds which have been warming up to India. In July, when SP group entities issued bonds worth 214 billion rupees, sole arranger Deutsche scooped up 29% of the offer, according to data from Tracxn. In May 2025, SP group raised 286 billion rupees, roughly $3 billion at current exchange rates, from Ares Management ARES.N, BlackRock BLK.N and others in India's largest ever onshore private credit transaction. Each of those notes is backed by shares in Tata Sons.
Now Deutsche is trying to offload three-year zero-coupon notes issued by Eqyizen Investment, a unit of the SP group, at a yield of up to 18.75%, down from 18.95% in July, according to a Reuters report citing unnamed merchant bankers. Yet the spat at Tata group which spilled into public this month muddies, rather than improves, SP's group's ability to honour its borrowings and monetise its Tata Sons holding which might be worth at least 250 billion rupees.
Although Tata Sons' chair, N. Chandrasekaran, supports a listing for the holding company he leads, the move is being forced upon the conglomerate by the Reserve Bank of India. And Noel Tata, chair of the Tata Trusts which owns 65% of Tata Sons, fiercely opposes both a listing and Chandra's leadership position at the holding company.
That could entangle the duo in legal battles and delay any capital markets debut. The power struggle also ought to make SP group's credit and its Tata Sons stake less attractive to investors and lenders because of the sheer official meddling in the Indian conglomerate.
The SP group is already seeking an extension to payments worth 35 billion rupees ($365 million) due on September 30. Until now, it has been able to keep deferring and gorging on increasingly expensive debt to stay afloat. But the struggle at Tata group could make it harder for SP group to refinance. That provides a strong incentive for Deutsche and other lenders to try and monetise their positions.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Deutsche Bank and other investors are offering rupee-denominated bonds of a Shapoorji Pallonji group firm at a premium, encouraged by the construction group's plans to sell part of its stake in Tata Sons, Reuters reported on September 21, citing three unnamed merchant bankers.
The SP group is also planning to seek an extension to a debt repayment worth around 35 billion rupees, which is due on September 30, the report added.
Tata Trusts on September 17 said the SP group proposed to sell part of its 18% stake worth 250 billion rupees in Tata Sons, the unlisted holding company of the wider steel-to-IT Tata conglomerate.
(Editing by Una Glani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
Updates graphic, adds analyst comments, share close; paragraphs 10-13
By Surbhi Misra and Bharath Rajeswaran
Sept 18 (Reuters) - Shares of India's Tata Group companies lost $4 billion in market value on Friday, as investors reacted to heightened uncertainty over the potential listing and leadership of holding company Tata Sons, following a public dispute.
The selloff followed Tata Sons' decision on Thursday to reappoint Chairman N. Chandrasekaran for five years and move towards complying with RBI rules that could require a listing, despite opposition from its 66% shareholder, Tata Trusts.
The moves deepened a dispute over governance and succession, raising concerns about capital allocation, leadership uncertainty and the impact of a potential Tata Sons listing on the group's structure.
About 383.61 billion rupees ($4.00 billion) was erased from the combined market value of listed Tata Group companies on Friday, from about $268.5 billion at Thursday's close, Reuters calculations based on exchange data showed.
Shares of flagship Tata Consultancy Services TCS.NS closed down 3.88%, while Tata Chemicals TTCH.NS slumped 11.04% and Tata Motors Passenger Vehicles TAMO.NS fell 3.4%.
Tata Elxsi TTEX.NS dropped 3.4% and Tata Investment Corporation TINV.NS lost 2.55%, and Tata Steel TISC.NS slipped 0.93%.
Some group stocks bucked the trend, with Tata Capital TATC.NS rising 2.42%, Tata Power TTPW.NS gaining 1.57% and Tata Motors TATM.NS adding 1.56%.
Friday's declines reversed some of Thursday's gains in group stocks that followed news of Chandrasekaran's reappointment.
Governance concerns were weighing on sentiment towards Tata Group stocks, although individual companies remain exposed to their own industry-specific fundamentals, said Mayank Jain, market analyst at Share.Market by PhonePe.
Tata Trusts has called Chandrasekaran's reappointment "illegal" under Tata Sons' articles and opposed a listing, exposing a widening divide over the future structure of the 158-year-old conglomerate.
Chandrasekaran's reappointment "further displayed" divisions within the boardroom, said independent market analyst Ambareesh Baliga.
Separately, Tata Trusts said Shapoorji Pallonji Group, Tata Sons' second-largest shareholder, had proposed monetising part of its 18.4% stake through a two-tranche buyout that would yield at least $2.61 billion over 18 months.
On Friday, SP Group backed a potential Tata Sons listing.
($1=95.8725 Indian rupees)
(Reporting by Surbhi Misra and Bharath Rajeswaran in Bengaluru; Writing by Chandini Monnappa; Editing by Sonia Cheema and Clarence Fernandez)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Updates graphic, adds analyst comments, share close; paragraphs 10-13
By Surbhi Misra and Bharath Rajeswaran
Sept 18 (Reuters) - Shares of India's Tata Group companies lost $4 billion in market value on Friday, as investors reacted to heightened uncertainty over the potential listing and leadership of holding company Tata Sons, following a public dispute.
The selloff followed Tata Sons' decision on Thursday to reappoint Chairman N. Chandrasekaran for five years and move towards complying with RBI rules that could require a listing, despite opposition from its 66% shareholder, Tata Trusts.
The moves deepened a dispute over governance and succession, raising concerns about capital allocation, leadership uncertainty and the impact of a potential Tata Sons listing on the group's structure.
About 383.61 billion rupees ($4.00 billion) was erased from the combined market value of listed Tata Group companies on Friday, from about $268.5 billion at Thursday's close, Reuters calculations based on exchange data showed.
Shares of flagship Tata Consultancy Services TCS.NS closed down 3.88%, while Tata Chemicals TTCH.NS slumped 11.04% and Tata Motors Passenger Vehicles TAMO.NS fell 3.4%.
Tata Elxsi TTEX.NS dropped 3.4% and Tata Investment Corporation TINV.NS lost 2.55%, and Tata Steel TISC.NS slipped 0.93%.
Some group stocks bucked the trend, with Tata Capital TATC.NS rising 2.42%, Tata Power TTPW.NS gaining 1.57% and Tata Motors TATM.NS adding 1.56%.
Friday's declines reversed some of Thursday's gains in group stocks that followed news of Chandrasekaran's reappointment.
Governance concerns were weighing on sentiment towards Tata Group stocks, although individual companies remain exposed to their own industry-specific fundamentals, said Mayank Jain, market analyst at Share.Market by PhonePe.
Tata Trusts has called Chandrasekaran's reappointment "illegal" under Tata Sons' articles and opposed a listing, exposing a widening divide over the future structure of the 158-year-old conglomerate.
Chandrasekaran's reappointment "further displayed" divisions within the boardroom, said independent market analyst Ambareesh Baliga.
Separately, Tata Trusts said Shapoorji Pallonji Group, Tata Sons' second-largest shareholder, had proposed monetising part of its 18.4% stake through a two-tranche buyout that would yield at least $2.61 billion over 18 months.
On Friday, SP Group backed a potential Tata Sons listing.
($1=95.8725 Indian rupees)
(Reporting by Surbhi Misra and Bharath Rajeswaran in Bengaluru; Writing by Chandini Monnappa; Editing by Sonia Cheema and Clarence Fernandez)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Sept 17 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:
TATA SONS PVT LTD- TATA TRUSTS RESOLVED THAT N CHANDRASEKARAN BE RE-APPOINTED AS EXECUTIVE CHAIRMAN FOR A FURTHER TERM OF FIVE YEARS
TATA SONS: ALSO RESOLVED TO INITIATE STEPS TO COMPLY WITH APPLICABLE RBI GUIDELINES AND WILL SEEK GUIDANCE FROM RBI, TATA TRUSTS AND OTHER STAKEHOLDERS ON APPLICABLE COMPLIANCE REQUIREMENTS
Source text: [ID:]
Further company coverage: TAMO.NS
(([email protected];))
Sept 17 (Reuters) - Tata Motors Passenger Vehicles Ltd TAMO.NS:
TATA SONS PVT LTD- TATA TRUSTS RESOLVED THAT N CHANDRASEKARAN BE RE-APPOINTED AS EXECUTIVE CHAIRMAN FOR A FURTHER TERM OF FIVE YEARS
TATA SONS: ALSO RESOLVED TO INITIATE STEPS TO COMPLY WITH APPLICABLE RBI GUIDELINES AND WILL SEEK GUIDANCE FROM RBI, TATA TRUSTS AND OTHER STAKEHOLDERS ON APPLICABLE COMPLIANCE REQUIREMENTS
Source text: [ID:]
Further company coverage: TAMO.NS
(([email protected];))
AI executives call for a slower pace of development
Shares of software companies rise globally
HCL Tech, Infosys and TCS among top Indian IT gainers
Adds analyst comment in paragraphs 4,5
By Urvi Dugar
Sept 15 (Reuters) - Indian IT stocks .NIFTYIT surged as much as 5.2% on Tuesday, tracking gains in global software shares, after AI executives called for a slower pace of development amid concerns over the technology's risks.
Shares of software companies globally have been battered by concerns that AI could make parts of their business obsolete. India's $315 billion IT industry is seen as especially vulnerable because of its reliance on billable hours, leaving IT stocks among the market's worst performers over the past year.
The IT index was set for its best session since July 2. It has fallen about 21% this year, more than twice the decline of the benchmark Nifty 50 index .NSEI.
A slower pace of AI development could give Indian IT firms more time to adapt to new models and manage their costs, rather than continually spending to keep pace with the rapidly evolving technology, said Piyush Pandey, an analyst at Centrum Broking.
"Faster AI development increases uncertainty for enterprises," Pandey said, adding that Tuesday's gains were a tactical bounce rather than a sign of a fundamental improvement in the sector's outlook.
HCLTech HCLT.NS led gains on the index on Tuesday, climbing 6.21% after eight straight sessions of declines. Infosys INFY.NS and TCS TCS.NS rose 4.72% and 4.76%, respectively.
The rally comes after Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities after mounting fears that the technology could be misused. Both Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agree with Amodei.
Alarm about the potential harm from AI intensified earlier this month when Anthropic researcher Jacob Coxon resigned, saying AI companies are "gambling with our lives."
Indian IT outsourcing companies including Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS have been rejigging their business models in response to AI-led disruption, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
(Reporting by Urvi Dugar in Bengaluru; Editing by Abinaya V and Sonia Cheema)
(([email protected]; +91 9558725583;))
AI executives call for a slower pace of development
Shares of software companies rise globally
HCL Tech, Infosys and TCS among top Indian IT gainers
Adds analyst comment in paragraphs 4,5
By Urvi Dugar
Sept 15 (Reuters) - Indian IT stocks .NIFTYIT surged as much as 5.2% on Tuesday, tracking gains in global software shares, after AI executives called for a slower pace of development amid concerns over the technology's risks.
Shares of software companies globally have been battered by concerns that AI could make parts of their business obsolete. India's $315 billion IT industry is seen as especially vulnerable because of its reliance on billable hours, leaving IT stocks among the market's worst performers over the past year.
The IT index was set for its best session since July 2. It has fallen about 21% this year, more than twice the decline of the benchmark Nifty 50 index .NSEI.
A slower pace of AI development could give Indian IT firms more time to adapt to new models and manage their costs, rather than continually spending to keep pace with the rapidly evolving technology, said Piyush Pandey, an analyst at Centrum Broking.
"Faster AI development increases uncertainty for enterprises," Pandey said, adding that Tuesday's gains were a tactical bounce rather than a sign of a fundamental improvement in the sector's outlook.
HCLTech HCLT.NS led gains on the index on Tuesday, climbing 6.21% after eight straight sessions of declines. Infosys INFY.NS and TCS TCS.NS rose 4.72% and 4.76%, respectively.
The rally comes after Anthropic CEO Dario Amodei called on AI companies to slow the rate at which they advance model capabilities after mounting fears that the technology could be misused. Both Elon Musk, who runs xAI, and OpenAI CEO Sam Altman said they agree with Amodei.
Alarm about the potential harm from AI intensified earlier this month when Anthropic researcher Jacob Coxon resigned, saying AI companies are "gambling with our lives."
Indian IT outsourcing companies including Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS and HCLTech HCLT.NS have been rejigging their business models in response to AI-led disruption, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
(Reporting by Urvi Dugar in Bengaluru; Editing by Abinaya V and Sonia Cheema)
(([email protected]; +91 9558725583;))
Sept 8 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
WINS 1.22 BILLION RUPEES BID TO BUILD AI-ENABLED DIGITAL GOVERNANCE PLATFORM FOR ODISHA GOVERNMENT
WILL IMPLEMENT ODISHA STATE WORKFLOW AUTOMATION SYSTEM 3.0 TO STREAMLINE STATE’S PAPERLESS GOVERNANCE SYSTEMS
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];))
Sept 8 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
WINS 1.22 BILLION RUPEES BID TO BUILD AI-ENABLED DIGITAL GOVERNANCE PLATFORM FOR ODISHA GOVERNMENT
WILL IMPLEMENT ODISHA STATE WORKFLOW AUTOMATION SYSTEM 3.0 TO STREAMLINE STATE’S PAPERLESS GOVERNANCE SYSTEMS
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];))
Sept 7 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS LAUNCHES AI-NATIVE CREATIVE ENGINEERING STUDIO IN THE UK
NEW FACILITY IS PART OF TCS' COMMITMENT TO CREATING 5,000 JOBS IN UK
Further company coverage: TCS.NS
(([email protected];;))
Sept 7 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS LAUNCHES AI-NATIVE CREATIVE ENGINEERING STUDIO IN THE UK
NEW FACILITY IS PART OF TCS' COMMITMENT TO CREATING 5,000 JOBS IN UK
Further company coverage: TCS.NS
(([email protected];;))
Sept 3 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - SELECTED AS A STRATEGIC PARTNER BY INTERNATIONAL WHOLESALER METRO AG
TCS - TCS WILL HELP INTERNATIONAL WHOLESALER METRO SIMPLIFY ITS TECHNOLOGY ENVIRONMENT
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];;))
Sept 3 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - SELECTED AS A STRATEGIC PARTNER BY INTERNATIONAL WHOLESALER METRO AG
TCS - TCS WILL HELP INTERNATIONAL WHOLESALER METRO SIMPLIFY ITS TECHNOLOGY ENVIRONMENT
Source text: [ID:]
Further company coverage: TCS.NS
(([email protected];;))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Ujjaini Dutta
BENGALURU, Sept 1 (Reuters Breakingviews) - The disruption from artificial intelligence across India's $315 billion IT services sector is forcing companies to get creative. Case in point: Tata Consultancy Services' TCS.NS recent tie-up with luxury carmaker Porsche P911_p.DE. Financial gains are limited for the $91 billion giant, but the alliance gives it a foothold in Europe's auto sector.
As part of the deal unveiled last week, TCS will buy Porsche's automotive and consulting unit MHP at a 320 million euro enterprise value, equal to 0.4 times the target's 2025 sales. At the same time, the high-end German manufacturer will commit 1.3 billion euros to the Indian group to "embed AI" across its operations in a five-year strategic partnership.
That works out to an extra $300 million for TCS's annual top line, or just 1% of revenue for the year to the end of March. Strategically, though, TCS gains expertise that rivals may struggle to replicate: MHP boasts roughly 4,500 employees and a client roster including Porsche and other car brands, as well as industrial groups spanning aerospace to energy. But the bigger prize may be direct access to the $45 billion Volkswagen group that also owns, in addition to Porsche, Audi, Lamborghini and other brands.
TCS has stepped up acquisitions of late, including two U.S. deals last year; expanding its footprint in Europe, which accounts for roughly a third of revenue, looks sensible. This year, it bagged an $800 million AI contract with Swedish manufacturer SKF SKFb.ST and launched a sovereign cloud computing service for European governments, public sector enterprises and regulated industries. Deepening ties with the region's industrial groups should help ease reliance on its biggest market by sales, North America. Revenue there grew just 2% last quarter from the same period last year, compared to the 4.3% increase in Continental Europe.
TCS's latest move echoes rival Wipro's WIPR.NS strategic tie-up, announced in May, with Singapore-based food and agricultural conglomerate Olam OLAG.SI, which also offloaded its IT and digital services to the Indian firm. Both deals underscore the need to find new growth in specialised areas as AI upends the industry's once-booming outsourcing business model. TCS's stock currently trades on less than 15 times forward 12-month earnings, per LSEG, far below its five-year average of over 25 times. Carving out industry niches is a promising strategy that will require some unusual dealmaking.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Tata Consultancy Services will buy Porsche AG's automotive and consulting unit MHP at an enterprise value of €320 million, the IT major said on August 24 in a stock exchange filing.
Under the partnership, Porsche has signed a five-year strategic deal with MHP and TCS amounting to €1.25 billion. The deal is expected to close by the end of the year.
(Editing by Robyn Mak; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Ujjaini Dutta
BENGALURU, Sept 1 (Reuters Breakingviews) - The disruption from artificial intelligence across India's $315 billion IT services sector is forcing companies to get creative. Case in point: Tata Consultancy Services' TCS.NS recent tie-up with luxury carmaker Porsche P911_p.DE. Financial gains are limited for the $91 billion giant, but the alliance gives it a foothold in Europe's auto sector.
As part of the deal unveiled last week, TCS will buy Porsche's automotive and consulting unit MHP at a 320 million euro enterprise value, equal to 0.4 times the target's 2025 sales. At the same time, the high-end German manufacturer will commit 1.3 billion euros to the Indian group to "embed AI" across its operations in a five-year strategic partnership.
That works out to an extra $300 million for TCS's annual top line, or just 1% of revenue for the year to the end of March. Strategically, though, TCS gains expertise that rivals may struggle to replicate: MHP boasts roughly 4,500 employees and a client roster including Porsche and other car brands, as well as industrial groups spanning aerospace to energy. But the bigger prize may be direct access to the $45 billion Volkswagen group that also owns, in addition to Porsche, Audi, Lamborghini and other brands.
TCS has stepped up acquisitions of late, including two U.S. deals last year; expanding its footprint in Europe, which accounts for roughly a third of revenue, looks sensible. This year, it bagged an $800 million AI contract with Swedish manufacturer SKF SKFb.ST and launched a sovereign cloud computing service for European governments, public sector enterprises and regulated industries. Deepening ties with the region's industrial groups should help ease reliance on its biggest market by sales, North America. Revenue there grew just 2% last quarter from the same period last year, compared to the 4.3% increase in Continental Europe.
TCS's latest move echoes rival Wipro's WIPR.NS strategic tie-up, announced in May, with Singapore-based food and agricultural conglomerate Olam OLAG.SI, which also offloaded its IT and digital services to the Indian firm. Both deals underscore the need to find new growth in specialised areas as AI upends the industry's once-booming outsourcing business model. TCS's stock currently trades on less than 15 times forward 12-month earnings, per LSEG, far below its five-year average of over 25 times. Carving out industry niches is a promising strategy that will require some unusual dealmaking.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Tata Consultancy Services will buy Porsche AG's automotive and consulting unit MHP at an enterprise value of €320 million, the IT major said on August 24 in a stock exchange filing.
Under the partnership, Porsche has signed a five-year strategic deal with MHP and TCS amounting to €1.25 billion. The deal is expected to close by the end of the year.
(Editing by Robyn Mak; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
Aug 25 (Reuters) - ** Tata Consultancy Services TCS.NS will buy Porsche AG's P911_p.DE automotive and consulting unit MHP, as part of a wider partnership under which Porsche has committed €1.25 billion for the Indian firm and MHP
** Shares rise 0.7% to 2,300 rupees
STRENGTHENING EUROPE AUTO PLAY
** HSBC ("hold," PT: 2,350 rupees) says the MHP acquisition fills a key white space in TCS' European automotive and consulting business and comes with committed revenues from Porsche
** Morgan Stanley ("equal-weight," PT: 2,200 rupees) says the deal strengthens TCS' automotive engineering capabilities, adds a marquee Porsche relationship and expands its European footprint, but expects only a modest financial contribution
** Emkay Global ("add," PT: 2,600 rupees) says the acquisition and accompanying AI partnership with Porsche should bolster TCS' automotive and industrial consulting capabilities in Europe
(Reporting by Kashish Tandon in Bengaluru)
(([email protected]; 8800437922))
Aug 25 (Reuters) - ** Tata Consultancy Services TCS.NS will buy Porsche AG's P911_p.DE automotive and consulting unit MHP, as part of a wider partnership under which Porsche has committed €1.25 billion for the Indian firm and MHP
** Shares rise 0.7% to 2,300 rupees
STRENGTHENING EUROPE AUTO PLAY
** HSBC ("hold," PT: 2,350 rupees) says the MHP acquisition fills a key white space in TCS' European automotive and consulting business and comes with committed revenues from Porsche
** Morgan Stanley ("equal-weight," PT: 2,200 rupees) says the deal strengthens TCS' automotive engineering capabilities, adds a marquee Porsche relationship and expands its European footprint, but expects only a modest financial contribution
** Emkay Global ("add," PT: 2,600 rupees) says the acquisition and accompanying AI partnership with Porsche should bolster TCS' automotive and industrial consulting capabilities in Europe
(Reporting by Kashish Tandon in Bengaluru)
(([email protected]; 8800437922))
Tata Consultancy Services said Porsche AG had executed a five-year strategic deal with TCS and MHP worth €1.25 billion. The agreement covered the industrialisation of AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation activities, including automotive technology services and software-defined mobility platforms. The deal was linked to TCS’s acquisition of MHP Management- und IT-Beratung GmbH and was effective from the closing date of that acquisition. TCS’s annualised AI revenue had risen to $2.3 billion, while recent AI product and ecosystem announcements had not specified customer revenue or contract values.
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Tata Consultancy Services said Porsche AG had executed a five-year strategic deal with TCS and MHP worth €1.25 billion. The agreement covered the industrialisation of AI across Porsche’s engineering, manufacturing, operations, customer experience and enterprise transformation activities, including automotive technology services and software-defined mobility platforms. The deal was linked to TCS’s acquisition of MHP Management- und IT-Beratung GmbH and was effective from the closing date of that acquisition. TCS’s annualised AI revenue had risen to $2.3 billion, while recent AI product and ecosystem announcements had not specified customer revenue or contract values.
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Tata Consultancy Services agreed to acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche AG's automotive and industrial consulting subsidiary, for an enterprise value of €320 million. The transaction formed part of a five-year strategic partnership under which Porsche signed a €1.25 billion deal with TCS and MHP to develop AI services across its mobility value chain. MHP reported turnover of €742 million in calendar 2025 and employed about 4,500 people, with subsidiaries in Romania, the UK, the US, India and Mexico. The announcement followed TCS's recent AI expansion through Google Cloud Gemini Experience Centres, a Vodafone Business partnership and the TCS ADD Agent Hub, while those releases did not disclose customer revenue or contract values.
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Tata Consultancy Services agreed to acquire 100% of MHP Management- und IT-Beratung GmbH, Porsche AG's automotive and industrial consulting subsidiary, for an enterprise value of €320 million. The transaction formed part of a five-year strategic partnership under which Porsche signed a €1.25 billion deal with TCS and MHP to develop AI services across its mobility value chain. MHP reported turnover of €742 million in calendar 2025 and employed about 4,500 people, with subsidiaries in Romania, the UK, the US, India and Mexico. The announcement followed TCS's recent AI expansion through Google Cloud Gemini Experience Centres, a Vodafone Business partnership and the TCS ADD Agent Hub, while those releases did not disclose customer revenue or contract values.
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Tata Consultancy Services agreed to acquire 100% of MHP Management- und IT-Beratung GmbH from Porsche AG for an enterprise value of €320 million, subject to regulatory approvals. Porsche also signed a five-year strategic deal with TCS and MHP worth €1.25 billion, under which TCS will establish an AI Mobility Centre of Excellence for Porsche. MHP, headquartered in Germany, had turnover of €742 million in 2025 and about 4,500 employees, with operations spanning automotive and industrial consulting, AI, SAP and software-defined mobility. TCS generated AI revenue of $2.3 billion in FY26 and had recently expanded its AI delivery network through Google Cloud centres and an agentic-AI platform.
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Tata Consultancy Services agreed to acquire 100% of MHP Management- und IT-Beratung GmbH from Porsche AG for an enterprise value of €320 million, subject to regulatory approvals. Porsche also signed a five-year strategic deal with TCS and MHP worth €1.25 billion, under which TCS will establish an AI Mobility Centre of Excellence for Porsche. MHP, headquartered in Germany, had turnover of €742 million in 2025 and about 4,500 employees, with operations spanning automotive and industrial consulting, AI, SAP and software-defined mobility. TCS generated AI revenue of $2.3 billion in FY26 and had recently expanded its AI delivery network through Google Cloud centres and an agentic-AI platform.
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Aug 24 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - UNIT TO BUY 100% OF MHP FOR €320 MILLION ENTERPRISE VALUE
TCS - TATA CONSULTANCY SERVICES NETHERLANDS B.V. APPROVED ACQUISITION OF 100% OF MHP MANAGEMENT- UND IT-BERATUNG GMBH
TCS - TCS AND PORSCHE AG PARTNER TO ACCELERATE THE FUTURE OF AI-POWERED MOBILITY
TCS - PORSCHE HAS SIGNED A FIVE-YEAR STRATEGIC DEAL WITH MHP AND TCS AMOUNTING TO €1.25 BILLION
TCS - TCS AND PORSCHE AG PARTNER TO ACCELERATE FUTURE OF AI-POWERED MOBILITY
TCS - ACQUISITION IS EXPECTED TO BE COMPLETED WITHIN 3-4 MONTHS
Source text: ID:nBSE4vL3Zl
Further company coverage: TCS.NS
(([email protected];;))
Aug 24 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS - UNIT TO BUY 100% OF MHP FOR €320 MILLION ENTERPRISE VALUE
TCS - TATA CONSULTANCY SERVICES NETHERLANDS B.V. APPROVED ACQUISITION OF 100% OF MHP MANAGEMENT- UND IT-BERATUNG GMBH
TCS - TCS AND PORSCHE AG PARTNER TO ACCELERATE THE FUTURE OF AI-POWERED MOBILITY
TCS - PORSCHE HAS SIGNED A FIVE-YEAR STRATEGIC DEAL WITH MHP AND TCS AMOUNTING TO €1.25 BILLION
TCS - TCS AND PORSCHE AG PARTNER TO ACCELERATE FUTURE OF AI-POWERED MOBILITY
TCS - ACQUISITION IS EXPECTED TO BE COMPLETED WITHIN 3-4 MONTHS
Source text: ID:nBSE4vL3Zl
Further company coverage: TCS.NS
(([email protected];;))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Aug 21 (Reuters Breakingviews) - India's most respected conglomerate has an opportunity to take an important step forward. In a bid to improve governance, charitable trusts controlling the $280 billion Tata salt-to-IT group formally split ownership from management in 2022 by giving Tata Sons, the unlisted holding company, its own chair. The fractious departure of the latest person to hold that position, N. Chandrasekaran, suggests the reform fell short. If the trusts' ultimate goal is to maximise income to fund their philanthropic mandate, they should resist reimposing central control and give the next chair greater authority.
Set up by founder Jamsetji Tata in 1892, the Tata Trusts are a cluster of charities aiming to advance social and economic development. Their activities, ranging from building hospitals to sponsoring sports in India's hinterland, are financed through dividends drawn from their 66% stake in Tata Sons. This income grew more than 11-fold during the four years ended March 31 to 29.4 billion rupees ($307.24 million). The charity work, and the founder's insistence that Tata group companies look after employees to a high standard, has made its brand synonymous with public service.
In the long term, however, indirectly owning large or majority stakes in some 31 companies ranging from $87 billion Tata Consultancy Services TCS.NS to $18 billion Tata Motors TATM.NS may not be the best way for the trusts to fund their mission. A true arm's-length separation between the charities and the holding company, with the latter making minority investments like a pension or sovereign fund, may be more lucrative.
The current structure is the worst of all worlds because it has allowed the trusts to cling onto power. The two main charities don't just nominate one-third of directors on Tata Sons' board, they also hold veto rights over its decisions. Any investment of more than 1 billion rupees ($10.45 million) gets kicked up to the board, a threshold so low that the charities have the final say over most spending.
As a result, the trusts have someone to blame if they don't like performance but are not delegating enough power for the holding company chair to maximise returns. It has led to bizarre decisions that jeopardise the charities' future income, such as the purchase of struggling carrier Air India from the government. By contrast, the not-for-profit foundation Robert Bosch Stiftung has no influence on the strategic or business orientation of Germany's Bosch despite owning 94%.
Tata is much more complex and no corporate structure is immune to boardroom clashes of the sort that culminated in Chandra's exit. The root of his departure revolved around a unique disagreement over whether to list the holding company, which would fundamentally change the group's structure. Nonetheless, now that he's on the way out, the trusts have an opportunity to reflect on how best to fulfill their philanthropic mandate.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Tata Trusts, the charities controlling India's Tata group of companies, said on August 13 that trustees of the Sir Dorabji Tata Trust have passed a resolution to set up a selection committee to recommend a new Chairman for Tata Sons. N. Chandrasekaran on August 12 said he would not offer himself for a third term as chair of Tata Sons, citing the absence of unanimous support from the board for his re-appointment.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, Aug 21 (Reuters Breakingviews) - India's most respected conglomerate has an opportunity to take an important step forward. In a bid to improve governance, charitable trusts controlling the $280 billion Tata salt-to-IT group formally split ownership from management in 2022 by giving Tata Sons, the unlisted holding company, its own chair. The fractious departure of the latest person to hold that position, N. Chandrasekaran, suggests the reform fell short. If the trusts' ultimate goal is to maximise income to fund their philanthropic mandate, they should resist reimposing central control and give the next chair greater authority.
Set up by founder Jamsetji Tata in 1892, the Tata Trusts are a cluster of charities aiming to advance social and economic development. Their activities, ranging from building hospitals to sponsoring sports in India's hinterland, are financed through dividends drawn from their 66% stake in Tata Sons. This income grew more than 11-fold during the four years ended March 31 to 29.4 billion rupees ($307.24 million). The charity work, and the founder's insistence that Tata group companies look after employees to a high standard, has made its brand synonymous with public service.
In the long term, however, indirectly owning large or majority stakes in some 31 companies ranging from $87 billion Tata Consultancy Services TCS.NS to $18 billion Tata Motors TATM.NS may not be the best way for the trusts to fund their mission. A true arm's-length separation between the charities and the holding company, with the latter making minority investments like a pension or sovereign fund, may be more lucrative.
The current structure is the worst of all worlds because it has allowed the trusts to cling onto power. The two main charities don't just nominate one-third of directors on Tata Sons' board, they also hold veto rights over its decisions. Any investment of more than 1 billion rupees ($10.45 million) gets kicked up to the board, a threshold so low that the charities have the final say over most spending.
As a result, the trusts have someone to blame if they don't like performance but are not delegating enough power for the holding company chair to maximise returns. It has led to bizarre decisions that jeopardise the charities' future income, such as the purchase of struggling carrier Air India from the government. By contrast, the not-for-profit foundation Robert Bosch Stiftung has no influence on the strategic or business orientation of Germany's Bosch despite owning 94%.
Tata is much more complex and no corporate structure is immune to boardroom clashes of the sort that culminated in Chandra's exit. The root of his departure revolved around a unique disagreement over whether to list the holding company, which would fundamentally change the group's structure. Nonetheless, now that he's on the way out, the trusts have an opportunity to reflect on how best to fulfill their philanthropic mandate.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Tata Trusts, the charities controlling India's Tata group of companies, said on August 13 that trustees of the Sir Dorabji Tata Trust have passed a resolution to set up a selection committee to recommend a new Chairman for Tata Sons. N. Chandrasekaran on August 12 said he would not offer himself for a third term as chair of Tata Sons, citing the absence of unanimous support from the board for his re-appointment.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
By Bharath Rajeswaran
Aug 19 (Reuters) - Robust profit growth for India's Nifty 50 companies has brightened the outlook for domestic markets, but global risk aversion and a strong IPO pipeline could temper a broader rally in the near term, according to Abakkus Investment Managers.
The benchmark Nifty 50 .NSEI and Sensex .BSESN are down 7.9% and 9.8% year-to-date amid crude-driven inflation and a record $25 billion in foreign outflows. In comparison, regional peers, such as South Korea and Taiwan, are up about 50% each.
Abakkus, which manages assets worth $5.2 billion, sees elevated crude prices, rising global yields and volatility in the AI trade as key external risks for Indian equities.
"Domestically, consumer demand and corporate profitability is strong as seen in the better-than-expected Q1 results, but globally, they are not," Aman Chowhan, head of equities of Alternates at Abakkus AMC, told Reuters on Wednesday.
However, Chowhan said that "after a weak first half, India should outperform EM and Asian peers relatively, but its direction will still be dictated by global risk sentiment, with crude and the AI trade likely setting the market's tempo."
Expanding equity supply is another hurdle, with IPOs, qualified institutional placements, and block deals competing for limited capital, Chowhan said.
"Every other day there's an IPO… some promoter selling, some QIP," Chowhan said, adding "fresh issues and institutional placements are siphoning liquidity from secondary markets as investors chase listing gains and growth stories."
After 27 mainboard IPOs raised 225.72 billion rupees ($2.36 billion) in the first half of 2026, a packed August pipeline signals sustained primary market supply in the near term.
Chowhan estimates that 40-50% of capital may, therefore, be absorbed by such offerings, restricting a broader market rally.
Against this backdrop, Abakkus favors leading niche NBFCs and mid-sized banking stocks, citing stronger credit growth.
It also expects foreign investors to return to equities only gradually as years of weak returns in key sectors, such as financials and IT, have made them cautious of increasing their exposure.
($1 = 95.7525 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)
(([email protected]; +91 9769003463;))
By Bharath Rajeswaran
Aug 19 (Reuters) - Robust profit growth for India's Nifty 50 companies has brightened the outlook for domestic markets, but global risk aversion and a strong IPO pipeline could temper a broader rally in the near term, according to Abakkus Investment Managers.
The benchmark Nifty 50 .NSEI and Sensex .BSESN are down 7.9% and 9.8% year-to-date amid crude-driven inflation and a record $25 billion in foreign outflows. In comparison, regional peers, such as South Korea and Taiwan, are up about 50% each.
Abakkus, which manages assets worth $5.2 billion, sees elevated crude prices, rising global yields and volatility in the AI trade as key external risks for Indian equities.
"Domestically, consumer demand and corporate profitability is strong as seen in the better-than-expected Q1 results, but globally, they are not," Aman Chowhan, head of equities of Alternates at Abakkus AMC, told Reuters on Wednesday.
However, Chowhan said that "after a weak first half, India should outperform EM and Asian peers relatively, but its direction will still be dictated by global risk sentiment, with crude and the AI trade likely setting the market's tempo."
Expanding equity supply is another hurdle, with IPOs, qualified institutional placements, and block deals competing for limited capital, Chowhan said.
"Every other day there's an IPO… some promoter selling, some QIP," Chowhan said, adding "fresh issues and institutional placements are siphoning liquidity from secondary markets as investors chase listing gains and growth stories."
After 27 mainboard IPOs raised 225.72 billion rupees ($2.36 billion) in the first half of 2026, a packed August pipeline signals sustained primary market supply in the near term.
Chowhan estimates that 40-50% of capital may, therefore, be absorbed by such offerings, restricting a broader market rally.
Against this backdrop, Abakkus favors leading niche NBFCs and mid-sized banking stocks, citing stronger credit growth.
It also expects foreign investors to return to equities only gradually as years of weak returns in key sectors, such as financials and IT, have made them cautious of increasing their exposure.
($1 = 95.7525 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)
(([email protected]; +91 9769003463;))
Adds details paragraph 3 onwards
Aug 18 (Reuters) - India's Tata Sons TATO.NS has adjourned its annual general meeting that was scheduled for August 18, a source with direct knowledge of the matter told Reuters on Tuesday.
The postponement comes days after Chairman N. Chandrasekaran said he would not seek reappointment when his term ends in February 2027, following months of disagreements with Tata Trusts, the group holding company Tata Sons' controlling shareholder.
Tata Trusts set up a selection committee last week to recommend a new chairman for Tata Sons. The trusts hold a controlling stake in Tata Sons and appoint a third of its directors, who have veto powers over key decisions.
Tata Trusts and Tata Sons did not immediately respond to Reuters' requests for comment.
The succession process is one of the most significant decisions facing the 158-year-old conglomerate, whose listed companies have a combined market value of about $277 billion.
Tata Sons is also facing pressure from minority shareholder Shapoorji Pallonji Group to pursue a public listing, an issue on which Tata Trusts and its chairman, Noel Tata, are expected to have significant influence.
(Reporting by Surbhi Misra, Kashish Tandon and Mridula Kumar in Bengaluru; Editing by Rashmi Aich and Ronojoy Mazumdar)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Adds details paragraph 3 onwards
Aug 18 (Reuters) - India's Tata Sons TATO.NS has adjourned its annual general meeting that was scheduled for August 18, a source with direct knowledge of the matter told Reuters on Tuesday.
The postponement comes days after Chairman N. Chandrasekaran said he would not seek reappointment when his term ends in February 2027, following months of disagreements with Tata Trusts, the group holding company Tata Sons' controlling shareholder.
Tata Trusts set up a selection committee last week to recommend a new chairman for Tata Sons. The trusts hold a controlling stake in Tata Sons and appoint a third of its directors, who have veto powers over key decisions.
Tata Trusts and Tata Sons did not immediately respond to Reuters' requests for comment.
The succession process is one of the most significant decisions facing the 158-year-old conglomerate, whose listed companies have a combined market value of about $277 billion.
Tata Sons is also facing pressure from minority shareholder Shapoorji Pallonji Group to pursue a public listing, an issue on which Tata Trusts and its chairman, Noel Tata, are expected to have significant influence.
(Reporting by Surbhi Misra, Kashish Tandon and Mridula Kumar in Bengaluru; Editing by Rashmi Aich and Ronojoy Mazumdar)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Aug 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS- LAUNCHES AGENTIC AI PLATFORM TO TRANSFORM DRUG DEVELOPMENT
Source text: ID:nnAZN4TEQEF
Further company coverage: TCS.NS
(([email protected];))
Aug 17 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS- LAUNCHES AGENTIC AI PLATFORM TO TRANSFORM DRUG DEVELOPMENT
Source text: ID:nnAZN4TEQEF
Further company coverage: TCS.NS
(([email protected];))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Ujjaini Dutta
BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.
Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.
Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.
From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.
AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.
This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.
By Ujjaini Dutta
BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.
Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.
Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.
From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.
AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.
This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.
Follow Ujjaini Dutta on LinkedIn and X.
CONTEXT NEWS
Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))
Aug 13 (Reuters) - India's Tata Trusts said on Thursday that the trustees of the Sir Dorabji Tata Trust have passed a resolution to set up a selection committee to recommend a new chairman for Tata Sons.
The resolution comes a day after Chairman N. Chandrasekaran said he would not seek reappointment when his term ends in February 2027, following months of disagreements with Tata Trusts, the group's controlling shareholder.
(Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Aug 13 (Reuters) - India's Tata Trusts said on Thursday that the trustees of the Sir Dorabji Tata Trust have passed a resolution to set up a selection committee to recommend a new chairman for Tata Sons.
The resolution comes a day after Chairman N. Chandrasekaran said he would not seek reappointment when his term ends in February 2027, following months of disagreements with Tata Trusts, the group's controlling shareholder.
(Reporting by Surbhi Misra in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
Chandrasekaran cites lack of board backing
Tata Group stocks pare losses from day's lows
TCS down 25.6% in 2026, Titan up 26%
Changes headline, rewrites, updates shares
By Surbhi Misra
Aug 12 (Reuters) - Shares of Tata Group companies fell on Wednesday after N. Chandrasekaran said he would not seek reappointment as Tata Sons chairman, deepening uncertainty at India's largest conglomerate that is already grappling with issues ranging from regulatory scrutiny to pricing pressures.
India's top IT services exporter, Tata Consultancy Services TCS.NS, slumped 3.9% and was the biggest loser on the Nifty .NSEI, dragging benchmark indexes lower.
Jaguar Land Rover-parent Tata Motors Passenger Vehicles TAMO.NS closed down 1.3%, while jeweller Titan TITN.NS and Tata Steel TISC.NS slipped 0.6% and 1.1%, respectively.
The stocks, however, ended off the day's lows.
Chandrasekaran cited a lack of backing from the board as the reason behind his decision, following months of tensions with Tata Trusts, the charity arm that owns 66% of Tata Sons, which, in turn, controls more than 30 companies in the conglomerate.
The two sides have disagreed over a potential listing of Tata Sons, losses at Air India, the planned exit of a minority shareholder and board representation.
"It's a knee-jerk reaction as Chandra has been at the helm for a long time, however, once the new chairperson is announced, it would be back to business as usual," said Ambareesh Baliga, a Mumbai-based market analyst.
Over the past year, the conglomerate has had to grapple with regulatory scrutiny of Air India following a fatal crash, pricing pressure at TCS and a cyberattack at JLR that disrupted production and weighed on Britain's economic output.
A source with direct knowledge of Chandrasekaran's decision told Reuters the disagreements were the sole reason for his resignation.
So far in 2026, TCS shares have dropped 25.6%, Tata Motors Passenger Vehicles is down 6.6% while Tata Steel has gained 3.4%. Titan shares have risen 26%.
"We have witnessed such uncertain periods for Tata Group, when Ratan Tata had taken over in early 1990s and more recently during the Cyrus Mistry imbroglio, but it has always managed to steer through. So this time it shouldn't be any different," said Baliga.
(Reporting by Kashish Tandon, Surbhi Misra and Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; 8800437922;))
Chandrasekaran cites lack of board backing
Tata Group stocks pare losses from day's lows
TCS down 25.6% in 2026, Titan up 26%
Changes headline, rewrites, updates shares
By Surbhi Misra
Aug 12 (Reuters) - Shares of Tata Group companies fell on Wednesday after N. Chandrasekaran said he would not seek reappointment as Tata Sons chairman, deepening uncertainty at India's largest conglomerate that is already grappling with issues ranging from regulatory scrutiny to pricing pressures.
India's top IT services exporter, Tata Consultancy Services TCS.NS, slumped 3.9% and was the biggest loser on the Nifty .NSEI, dragging benchmark indexes lower.
Jaguar Land Rover-parent Tata Motors Passenger Vehicles TAMO.NS closed down 1.3%, while jeweller Titan TITN.NS and Tata Steel TISC.NS slipped 0.6% and 1.1%, respectively.
The stocks, however, ended off the day's lows.
Chandrasekaran cited a lack of backing from the board as the reason behind his decision, following months of tensions with Tata Trusts, the charity arm that owns 66% of Tata Sons, which, in turn, controls more than 30 companies in the conglomerate.
The two sides have disagreed over a potential listing of Tata Sons, losses at Air India, the planned exit of a minority shareholder and board representation.
"It's a knee-jerk reaction as Chandra has been at the helm for a long time, however, once the new chairperson is announced, it would be back to business as usual," said Ambareesh Baliga, a Mumbai-based market analyst.
Over the past year, the conglomerate has had to grapple with regulatory scrutiny of Air India following a fatal crash, pricing pressure at TCS and a cyberattack at JLR that disrupted production and weighed on Britain's economic output.
A source with direct knowledge of Chandrasekaran's decision told Reuters the disagreements were the sole reason for his resignation.
So far in 2026, TCS shares have dropped 25.6%, Tata Motors Passenger Vehicles is down 6.6% while Tata Steel has gained 3.4%. Titan shares have risen 26%.
"We have witnessed such uncertain periods for Tata Group, when Ratan Tata had taken over in early 1990s and more recently during the Cyrus Mistry imbroglio, but it has always managed to steer through. So this time it shouldn't be any different," said Baliga.
(Reporting by Kashish Tandon, Surbhi Misra and Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala)
(([email protected]; 8800437922;))
Aug 11 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS- TCS AND GOOGLE CLOUD LAUNCH GEMINI EXPERIENCE CENTER IN MEXICO TO HELP DRIVE AI ADOPTION
Source text: ID:nBSE15qS6j
Further company coverage: TCS.NS
(([email protected];))
Aug 11 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
TCS- TCS AND GOOGLE CLOUD LAUNCH GEMINI EXPERIENCE CENTER IN MEXICO TO HELP DRIVE AI ADOPTION
Source text: ID:nBSE15qS6j
Further company coverage: TCS.NS
(([email protected];))
Aug 10 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
RECEIVED THREAT-INTELLIGENCE ALERTS ALLEGING POSSIBLE EXPOSURE OF CERTAIN EMPLOYEE INFORMATION
NO INDICATION THAT CUSTOMER DATA, CUSTOMER SYSTEMS, OR TCS OPERATIONAL SYSTEMS HAVE BEEN IMPACTED
INVESTIGATED THE MATTER AND HAS NOT FOUND ANY CREDIBLE EVIDENCE OF A BREACH OF TCS SYSTEMS OR CUSTOMER ENVIRONMENTS
ATTACKER CLAIMS TO HAVE USED PASSWORD SPRAY AND MULTI-FACTOR AUTHENTICATION (MFA) FATIGUE AS ATTACK VECTOR
COMPANY WILL CONTINUE TO ASSESS ANY NEW INFORMATION THAT BECOMES AVAILABLE AND TAKE APPROPRIATE ACTION
Further company coverage: TCS.NS
(([email protected];;))
Aug 10 (Reuters) - Tata Consultancy Services Ltd TCS.NS:
RECEIVED THREAT-INTELLIGENCE ALERTS ALLEGING POSSIBLE EXPOSURE OF CERTAIN EMPLOYEE INFORMATION
NO INDICATION THAT CUSTOMER DATA, CUSTOMER SYSTEMS, OR TCS OPERATIONAL SYSTEMS HAVE BEEN IMPACTED
INVESTIGATED THE MATTER AND HAS NOT FOUND ANY CREDIBLE EVIDENCE OF A BREACH OF TCS SYSTEMS OR CUSTOMER ENVIRONMENTS
ATTACKER CLAIMS TO HAVE USED PASSWORD SPRAY AND MULTI-FACTOR AUTHENTICATION (MFA) FATIGUE AS ATTACK VECTOR
COMPANY WILL CONTINUE TO ASSESS ANY NEW INFORMATION THAT BECOMES AVAILABLE AND TAKE APPROPRIATE ACTION
Further company coverage: TCS.NS
(([email protected];;))
RBI keeps Tata Sons in top tier of NBFCs
Says move won't affect pending licence surrender application.
Decision leaves unresolved whether Tata Sons will ultimately be required to list
Rewrites with comments from source, background
By Nishit Navin and Gopika Gopakumar
Aug 6 (Reuters) - The Reserve Bank of India on Thursday kept Tata Sons under enhanced regulatory supervision but said that would not affect the holding company's pending application to surrender its non-banking finance licence, leaving uncertainty over whether it will eventually have to list its shares.
Tata Sons, the principal investment holding company of the $400-billion Tata Group, was first classified as an upper-layer non-banking financial company (NBFC) in 2022. Under RBI rules, such entities are required to list within three years, although the regulator did not clarify whether that requirement applies while Tata Sons' deregistration request remains under review.
To avoid a listing, Tata Sons repaid its debt and applied about two years ago to surrender its NBFC licence. The application is still being considered by the central bank.
A person familiar with the RBI's thinking said the regulator is unlikely to require Tata Sons to list while the application remains pending, even though the three-year timeline has elapsed.
"Technically if you see Tata Sons has to follow all the regulation and if you look at even the listing, RBI will consider it as overdue. Since the application is yet to be disposed of, RBI will not push them to enforce these regulations," said the source familiar with the matter
The RBI and Tata Sons did not immediately respond to a Reuters request for comment. RBI Governor Sanjay Malhotra said on Wednesday that Tata Sons continued to be classified as an upper-layer NBFC because the framework governing such entities was "principle-based".
Upper-layer NBFCs are considered large and systemically important financial institutions and are subject to enhanced regulatory oversight. Tata Sons remains in the category because its asset size exceeds the stipulated 10 trillion rupees ($105 billion) threshold.
The outcome is significant because the Tata Trusts own about 66% of Tata Sons. A public listing could affect funding for the trusts' philanthropic activities and its investments in unlisted businesses, and alter the ownership structure of one of India's largest conglomerates.
Pressure for a listing has also come from Tata Sons' second-largest shareholder, the Shapoorji Pallonji Group, which wants to monetise or exit its holding as it seeks to reduce debt estimated at 5.5 trillion rupees to 6 trillion rupees.
Tata Sons owns Air India, Tata Digital and Tata Electronics, alongside stakes in listed companies including Tata Consultancy Services TCS.NS and Tata Steel TISC.NS.
($1 = 95.2200 Indian rupees)
(Reporting by Nishit Navin and Gopika Gopakumar. Editing by Sonia Cheema and Mark Potter)
(([email protected];))
RBI keeps Tata Sons in top tier of NBFCs
Says move won't affect pending licence surrender application.
Decision leaves unresolved whether Tata Sons will ultimately be required to list
Rewrites with comments from source, background
By Nishit Navin and Gopika Gopakumar
Aug 6 (Reuters) - The Reserve Bank of India on Thursday kept Tata Sons under enhanced regulatory supervision but said that would not affect the holding company's pending application to surrender its non-banking finance licence, leaving uncertainty over whether it will eventually have to list its shares.
Tata Sons, the principal investment holding company of the $400-billion Tata Group, was first classified as an upper-layer non-banking financial company (NBFC) in 2022. Under RBI rules, such entities are required to list within three years, although the regulator did not clarify whether that requirement applies while Tata Sons' deregistration request remains under review.
To avoid a listing, Tata Sons repaid its debt and applied about two years ago to surrender its NBFC licence. The application is still being considered by the central bank.
A person familiar with the RBI's thinking said the regulator is unlikely to require Tata Sons to list while the application remains pending, even though the three-year timeline has elapsed.
"Technically if you see Tata Sons has to follow all the regulation and if you look at even the listing, RBI will consider it as overdue. Since the application is yet to be disposed of, RBI will not push them to enforce these regulations," said the source familiar with the matter
The RBI and Tata Sons did not immediately respond to a Reuters request for comment. RBI Governor Sanjay Malhotra said on Wednesday that Tata Sons continued to be classified as an upper-layer NBFC because the framework governing such entities was "principle-based".
Upper-layer NBFCs are considered large and systemically important financial institutions and are subject to enhanced regulatory oversight. Tata Sons remains in the category because its asset size exceeds the stipulated 10 trillion rupees ($105 billion) threshold.
The outcome is significant because the Tata Trusts own about 66% of Tata Sons. A public listing could affect funding for the trusts' philanthropic activities and its investments in unlisted businesses, and alter the ownership structure of one of India's largest conglomerates.
Pressure for a listing has also come from Tata Sons' second-largest shareholder, the Shapoorji Pallonji Group, which wants to monetise or exit its holding as it seeks to reduce debt estimated at 5.5 trillion rupees to 6 trillion rupees.
Tata Sons owns Air India, Tata Digital and Tata Electronics, alongside stakes in listed companies including Tata Consultancy Services TCS.NS and Tata Steel TISC.NS.
($1 = 95.2200 Indian rupees)
(Reporting by Nishit Navin and Gopika Gopakumar. Editing by Sonia Cheema and Mark Potter)
(([email protected];))
Adds details on new tech hub, additional details on data center and background
July 24 (Reuters) - India's HCLTech HCLT.NS said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data center in the eastern state of Odisha in partnership with homegrown startup Sarvam AI.
India’s IT services firms are entering the data center business to capitalise on demand from AI and cloud computing while diversifying beyond their traditional outsourcing operations.
HCLTech's investment will include financial support from the Odisha government, the company said.
The project, based in the state capital of Bhubaneswar, will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies.
Last month, HCLTech acquired a 10.5% stake in Sarvam AI for $150 million.
Additionally, India's third-largest IT firm said it is also opening a technology center in Bhubaneswar, which will house 5,000 employees and start operations by 2028.
HCLTech CEO C Vijayakumar in a post-earnings press conference last week said that the company wants to deliver full-stack AI services, with data centers being a part of the value chain.
"...it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play," he said.
In November, larger peer Tata Consultancy Services' TCS.NS announced plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG.
The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs.
($1 = 96.5425 Indian rupees)
(Reporting by Abhirami G and Haripriya Suresh in Bengaluru; Editing by Sonia Cheema)
Adds details on new tech hub, additional details on data center and background
July 24 (Reuters) - India's HCLTech HCLT.NS said on Friday it would invest 142.57 billion rupees ($1.48 billion) to set up its first AI data center in the eastern state of Odisha in partnership with homegrown startup Sarvam AI.
India’s IT services firms are entering the data center business to capitalise on demand from AI and cloud computing while diversifying beyond their traditional outsourcing operations.
HCLTech's investment will include financial support from the Odisha government, the company said.
The project, based in the state capital of Bhubaneswar, will utilise HCLTech's full-stack AI capabilities and Sarvam's foundation models to offer sector-specific AI applications to both government-owned and private companies.
Last month, HCLTech acquired a 10.5% stake in Sarvam AI for $150 million.
Additionally, India's third-largest IT firm said it is also opening a technology center in Bhubaneswar, which will house 5,000 employees and start operations by 2028.
HCLTech CEO C Vijayakumar in a post-earnings press conference last week said that the company wants to deliver full-stack AI services, with data centers being a part of the value chain.
"...it's the data centre, it's the GPUs, it's the models, it's the applications that we will deliver on top of it. The overall value creation is significantly of a very different magnitude when you really look at this as a full stack, and that's really what we want to play," he said.
In November, larger peer Tata Consultancy Services' TCS.NS announced plans to invest $2 billion to develop AI data centers in partnership with private equity firm TPG.
The AI boom has spurred a rush among companies to pour money into data centers, with India seen as a key market due to its large internet user base and lower power and operating costs.
($1 = 96.5425 Indian rupees)
(Reporting by Abhirami G and Haripriya Suresh in Bengaluru; Editing by Sonia Cheema)
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What does TCS do?
Tata Consultancy Services (TCS)is an IT services, consulting and business solutions organization partnering with many of the world’s largest businesses in their transformational journeys for many years. With a global presence and deep domain expertise across multiple industry verticals, the company offers a comprehensive portfolio of services and offerings - grouped under application development and management, digital transformation, AI (Artificial Intelligence), data and cloud services, engineering services, cognitive business operations, cyber security, and products & platforms - targeting every C-suite stakeholder.
Who are the competitors of TCS?
TCS major competitors are Infosys, HCL Technologies, Wipro, Tech Mahindra, LTM, Persistent Systems, Coforge. Market Cap of TCS is ₹9,03,075 Crs. While the median market cap of its peers are ₹1,75,672 Crs.
Is TCS financially stable compared to its competitors?
TCS seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does TCS pay decent dividends?
The company seems to pay a good stable dividend. TCS latest dividend payout ratio is 80.92% and 3yr average dividend payout ratio is 77.47%
How has TCS allocated its funds?
Companies resources are allocated to majorly productive assets like Plant & Machinery and unproductive assets like Accounts Receivable
How strong is TCS balance sheet?
Balance sheet of TCS is strong. It shouldn't have solvency or liquidity issues.
Is the profitablity of TCS improving?
Yes, profit is increasing. The profit of TCS is ₹51,858 Crs for TTM, ₹49,210 Crs for Mar 2026 and ₹48,553 Crs for Mar 2025.
Is the debt of TCS increasing or decreasing?
Yes, The net debt of TCS is increasing. Latest net debt of TCS is -₹14,058 Crs as of Sep-26. This is greater than Mar-26 when it was -₹25,809 Crs.
Is TCS stock expensive?
TCS is not expensive. Latest PE of TCS is 17.5, while 3 year average PE is 27.17. Also latest EV/EBITDA of TCS is 11.87 while 3yr average is 19.1.
Has the share price of TCS grown faster than its competition?
TCS has given lower returns compared to its competitors. TCS has grown at ~6.95% over the last 10yrs while peers have grown at a median rate of 15.34%
Is the promoter bullish about TCS?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in TCS is 71.77% and last quarter promoter holding is 71.77%.
Are mutual funds buying/selling TCS?
The mutual fund holding of TCS is decreasing. The current mutual fund holding in TCS is 5.65% while previous quarter holding is 5.68%.