(Fixes spelling of CEO name in paragraphs 5 and 6 to Krithivasan, from Kritivasan)
(Reuters) -Shares of India’s No. 1 software services exporter Tata Consultancy Services jumped 4% in early trade on Friday, set for their best day since late-November, as the company signalled it was seeing signs of a demand revival.
TCS CEO K Krithivasan told reporters in a post-earnings press conference on Thursday that the company was seeing more confidence in discretionary programmes as clients were taking less time to sign deals.
Krithivasan’s comments overshadowed a weak performance in North American revenue for the fifth straight quarter.
TCS shares were last up 4.2% at 4,206.30 rupees. It led a 1.9% jump in IT stocks and was the top gainer on the blue-chip Nifty 50 index.
CLSA upgraded TCS to “outperform” from “hold” citing Krithivasan’s comments and forecast a 14% earnings per share growth in fiscal year 2026, compared to the 8% average it expects for 2025.
In a call with analysts, Krithivasan pointed to a recovery in demand in most sectors that it serves, including banking, financial services and insurance (BFSI) and consumer – which accounted for about 46% of third-quarter revenue.
The improved deal execution and demand commentary are signs that point to an upcycle, Bernstein analysts said.
($1 = 85.8600 Indian rupees)
(Reporting by Nandan Mandayam in Bengaluru; Editing by Varun H K)
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