“CLSA has downgraded TCS to 'hold' from 'outperform', maintaining a price target of ₹2,326. The brokerage expects a long gestation period before large IT firms achieve mid-single-digit revenue growth, as AI deflation impacts legacy services and macro headwinds persist. AI volumes are only expected to supersede deflation by FY2030, with AI becoming one-third of revenue by FY2031.”