TCS shares trade flat ahead of Q2 results; here's what brokerages expect

TCS shares gain ahead of Q2 results on October 9. 

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

TCS share price gained in Thursday's trade ahead of the announcement of the September quarter results later today after the market hours.

Shares of Tata Consultancy Services were trading at Rs 3,027.10 per share on the NSE, down marginally.

India's largest IT services exporter will kick off the earnings season for the July–September quarter, with the board likely to declare a second interim dividend for the financial year 2025–26.

The management will likely skip the press conference - initially scheduled for 5:30 pm, according to a Hindu Businessline news report, citing sources.

Layoffs impact, visa fee, muted demand: TCS Q2 earnings key factors to watch out for

Brokerages have estimated TCS’ operating margins to either remain flat at 24.5 percent or decline by around 20 bps sequentially. This will be driven by the wage hikes rolled out in Q2FY26, higher investments, restructuring costs and lower utilisation, analysts have said.

Analysts expect company to report 1.3% YoY growth in revenue and 6% YoY growth in profit, showed data compiled by LSEG.

Analysts expect sector performance to be lackluster as clients rein in spending amid macro and tariff uncertainty, reported Reuters.

Brokerage Centrum expects TCS' EBIT margin to improve on cost optimisation, says commentary on demand environment and deal pipeline will be key.

Ambit Capital says TCS likely to report weaker deal flow as against previous quarter. The brokerage added that the company's outlook for its BSFI segment - the biggest in terms of revenue - may be better in the U.S., but is offset by weakness in UK/EU and expects cautious commentary on smaller segments such as retail, telecom and auto.

TCS is among 5 stocks with average rating of "buy" on 10-member IT index while the rest have been rated "hold", showed data compiled by LSEG.

.As of Wednesday's close, TCS shares were down 25% as against 19% decline in IT index.

With inputs from Reuters

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.