TCS Buys Porsche's MHP for €320M; Porsche Commits €1.25B Over Five Years for AI and Software-Defined Vehicles

Tata Consultancy Services Netherlands B.V., a wholly owned subsidiary, approved the acquisition of 100% of MHP Management- und IT-Beratung GmbH from Porsche AG at an enterprise value of €320 million. MHP is an automotive and industrial consulting firm (business consulting, digital transformation, AI, SAP, manufacturing digitalisation, software-defined mobility) with CY2025 turnover of €742 million and about 4,500 employees. The share purchase agreement was signed the same day; completion is subject to regulatory approvals and conditions precedent.

In a second filing, TCS said Porsche has executed a five-year strategic deal with MHP and TCS amounting to €1.25 billion, effective from the closing date of the acquisition, to industrialise AI across Porsche's engineering, manufacturing, operations, customer experience and enterprise transformation, including software-defined mobility platforms. That figure is a customer commitment to the combined business over five years, not a TCS outlay. At about ₹111 per euro, the purchase price is roughly ₹3,550 crore and the Porsche commitment roughly ₹13,900 crore, or about ₹2,800 crore a year against TCS's FY27 run-rate revenue of about ₹2.9 lakh crore.

MHP's €742 million of turnover is about 2.8% of TCS's trailing revenue; the €320 million price is under one quarter's consolidated profit. Trailing twelve-month EPS of ₹137.6 puts the stock at roughly 17 times earnings at ₹2,342. The acquisition adds a European automotive consulting footprint and a named anchor client; it does not change TCS's scale.

The stock moved +0.5% on Aug 25, the first session after the filings, then slipped for two sessions and rose +4.2% on Aug 28 on about twice the 20-day average volume. It remains below its 20-day and 200-day averages and 30% below the 52-week high.