Deven Choksey Research has issued a BUY rating on Tata Consultancy Services Ltd, setting a target price of Rs 2,525 against a current market price of Rs 2,080, implying a 21% upside. Analyst Neel Mehta noted that TCS's annualized AI services revenue has crossed USD 2.6 billion, jumping 13.6% quarter-on-quarter and representing roughly 8.5% of total revenue. The headline deal of the quarter was a USD 800 million mega-contract with Swedish industrial giant SKF, the sixth such mega-deal in five quarters. Operating margin slipped to 24.0% in the first quarter, down from 25.3% in the prior quarter, as an approximately 170-basis-point annual salary increment hit the books. Employee costs consumed 58.3% of revenue. Management reiterated its target of exiting the fiscal year above a 25% operating margin. Free cash flow saw 93% of profit after tax converting to operating cash flow. Banking, financial services and insurance grew 1.6% in constant currency, while the technology vertical advanced 1.7%. Consumer Business was down 4.0%. Headcount rose by 9.