Tata Consultancy Services (BOM:532540) ROCE %: 59.99% (As of Jun. 2026)

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BOM:532540 Tata Consultancy Services Ltd BOM:532540
87 GF Score
Price ₹2,298.00
GF Value ₹4,075.54
Valuation Significantly Undervalued
! 1 Warning Sign
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What is Tata Consultancy Services ROCE %?

Tata Consultancy Services BOM:532540 +0.24% 87 ROCE % is 59.99% as of Jun. 2026. GuruFocus rates BOM:532540 with a GF Score™ of 87/100 and a GF Value™ of ₹4,075.54 (Significantly Undervalued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Tata Consultancy Services's annualized ROCE % for the quarter that ended in Jun. 2026 was 59.99%.

Tata Consultancy Services  (BOM:532540) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Tata Consultancy Services ROCE % Related Terms

Tata Consultancy Services ROCE % Historical Data

* Premium members only.

The historical data trend for Tata Consultancy Services's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Tata Consultancy Services ROCE % Chart

Tata Consultancy Services Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.61 57.90 62.64 63.90 58.50

Tata Consultancy Services Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 63.45 56.72 47.34 59.97 59.99
BOM:532540
87GF Score
Tata Consultancy Services Ltd BOM:532540
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tata Consultancy Services ROCE % Calculation

Tata Consultancy Services's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=667140/( ( (1596290 - 530010) + (1823720 - 609140) )/ 2 )
=667140/( (1066280+1214580)/ 2 )
=667140/1140430
=58.50 %

Tata Consultancy Services's ROCE % of for the quarter that ended in Jun. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2026 )  (Q: Mar. 2026 )(Q: Jun. 2026 )
=728680/( ( (1823720 - 609140) + (0 - 0) )/ 1 )
=728680/( ( 1214580 + 0 )/ 1 )
=728680/1214580
=59.99 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 59.99% mean?
Tata Consultancy Services (BOM:532540) has a ROCE % of 59.99% as of Jun. 2026.
Is Tata Consultancy Services' ROCE % too high?
Tata Consultancy Services' current ROCE % is 59.99%. The Software industry median ROCE % is 5.52. Tata Consultancy Services' value of 59.99% is 986.8% above this industry median. Overall, Tata Consultancy Services has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tata Consultancy Services' ROCE % compare to IBM and ACN?
Tata Consultancy Services' ROCE % of 59.99% can be compared against companies in the Software industry. The industry median ROCE % is 5.52. Tata Consultancy Services' value of 59.99% is 986.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Software company?
The median ROCE % among Software companies is 5.52, based on 2,725 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tata Consultancy Services's current ROCE % of 59.99% is 986.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median ROCE % is 5.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tata Consultancy Services's current ROCE % is 59.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tata Consultancy Services stock overvalued right now?
Based on GuruFocus' analysis, Tata Consultancy Services (BOM:532540) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹4,075.54, compared to a current price of ₹2,298.00 — trading 43.6% below its estimated fair value. The current ROCE % is 59.99% and 986.8% above the Software industry median of 5.52. Tata Consultancy Services' overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Tata Consultancy Services (BOM:532540), the current ROCE % is 59.99% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Tata Consultancy Services (BOM:532540) Overvalued in 2026?

Based on GuruFocus' analysis, Tata Consultancy Services stock appears to be undervalued. The current stock price of ₹2,298.00 is trading 43.6% below its estimated GF Value™ of ₹4,075.54. GuruFocus considers Tata Consultancy Services to be Significantly Undervalued.

Key valuation signals for BOM:532540:

  • ROCE %: 59.99%
  • GF Value™: ₹4,075.54 vs. price of ₹2,298.00 (43.6% below fair value)
  • GF Score™: 87/100 with 1 warning sign
  • Industry Position: 986.8% above the Software median

No single metric tells the full story. See the BOM:532540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Tata Consultancy Services Business Description

Other Exchanges TCS:India
Address Raveline Street, TCS House, Fort, Mumbai, MH, IND, 400001
Tata Consultancy Services is a leading global IT services provider based in Mumbai, India. Founded in 1968, it is one of the first companies to leverage a global delivery model that helps clients outsource their IT needs to offshore labor. The company boasts a wide range of offerings, including IT consulting, managed services, and business process outsourcing.
87GF Score

Get the complete analysis for BOM:532540

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹2,298.00
Price
₹4,075.54
GF Value