As Infosys mulls buyback, can TCS investors expect a similar move?

The board of Infosys is scheduled to meet on September 11 to discuss the buyback proposals. Meanwhile, Hong Kong-based brokerage firm CLSA believes it can trigger buyback talks at Tata Consultancy Services (TCS) too. 

TCS shares are currently trading at Rs 3,114 at noon. The brokerage maintained an ‘Outperform rating’ on TCS with a target price of Rs 4279 apiece, indicating a 38 per cent gain from the current market price.

CLSA cited no significant change in demand outlook due to global macro uncertainty. TCS is expected to see better international growth in FY26 compared to its overall growth.

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TCS last buyback details:

TCS’s buybacks have ranged from Rs 16,000 crore (2017) to Rs 18,000 crore (2022), often via the tender-offer style. 

TCS’s last buyback concluded in December 2023 through a tender offer. The company announced a share buyback worth Rs 17,000 crore, with a price of Rs 4,150 per share. The offer included the repurchase of 4.09 crore shares, representing 1.12 per cent of the paid-up capital.

TCS Q1 Highlights:

For the first quarter of Fiscal Year 2026 (ended June 30, 2025), TCS reported a net profit of Rs 12,760 crore, up 6 per cent year-over-year, with a revenue of Rs 63,437 crore, a slight 1.3 per cent increase year-over-year in reported currency but a 3.1 per cent decline in constant currency. The company’s operating margin was 24.5 per cent, and it announced an interim dividend of Rs 11 per share. 

Infosys’ last buyback details:

Infosys’ last buyback was in December 2022, where the company repurchased over 50 million shares for Rs 9,300 crore at a maximum price of Rs 1,850 per share through the open market route. 

If buyback talks are approved on Thursday, it could be Infosys’ fifth major share purchase since 2017. Analysts expect a buyback worth Rs 10,000-Rs 14,000 crore at an 18-25 per cent premium to the current market price.

What is Buyback of shares?

A buyback, also known as a share repurchase, is when a company buys back its own shares from the market. Companies do so to reduce the number of outstanding shares, increase shareholder value, and signal confidence in their financial performance.

Buybacks can be an efficient way for companies to return capital to shareholders, especially when they have excess cash reserves.