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TCS Shares Rise Ahead of Q2 Results as Analysts Assess Outlook
TCS shares rose before the company was due to report its latest quarterly results.
Analysts expect its revenue to grow only a little compared with the previous quarter.
They see possible support from areas such as banking and financial services, technology services, and manufacturing, but expect consumer business to be softer.
One brokerage expects the company’s profit margin to improve, partly because the effect of annual pay increases is reversing.
Spending on AI, workers, and business partnerships may limit that improvement.
Investors will also look for clues about customer demand and TCS’s AI business.
Even after the day’s rise, the shares were down sharply for the year.
TCS shares gained nearly 3% in morning trading on Thursday, October 8, ahead of its September-quarter results.
The stock opened at ₹2,098.80 and reached an intraday high of ₹2,142, compared with a previous close of ₹2,084.
Brokerages forecast roughly 0.5% to 0.6% quarter-on-quarter constant-currency revenue growth, citing differing expected growth drivers.
Motilal Oswal expects margins to rise nearly 100 basis points, while noting investment in AI, talent and partnerships could weigh on them.
TCS was down 34% year to date, versus a 15% fall in the Sensex and a 23% decline in the BSE IT index.
- Who
- Tata Consultancy Services (TCS), with expectations from Motilal Oswal, JM Financial and Systematix Institutional Equities.
- What
- TCS shares rose ahead of the company's September-quarter results, while brokerages issued revenue and margin expectations.
- Where
- Morning trading on the BSE.
- When
- Thursday, October 8; the article identifies the results as Q2FY27.
- Why
- The shares rose ahead of the results; the articles do not state a specific cause for the rise.
More supportive outlook
More cautious outlook
Expected revenue growth
More supportive outlook
Systematix expects 0.6% sequential constant-currency growth, supported by recovery in international business and growth in BFSI and manufacturing.
More cautious outlook
Motilal Oswal and JM Financial expect 0.5% sequential constant-currency growth; Motilal says steady execution in BFSI and technology services may be offset by consumer softness.
Margin outlook
More supportive outlook
Motilal Oswal expects EBIT margin to expand nearly 100 basis points sequentially to almost 25%, largely as the annual wage-hike impact reverses.
More cautious outlook
Motilal Oswal says continued investment in AI capabilities, talent and partnerships will weigh on margins.
Key facts
- Previous close
- ₹2,084
- Opening price
- ₹2,098.80
- Intraday high
- ₹2,142, up 2.8% from the previous close
- Revenue growth estimates
- Motilal Oswal and JM Financial: 0.5% QoQ constant-currency growth; Systematix: 0.6%
- Motilal Oswal margin estimate
- Nearly 100 basis points of sequential EBIT margin expansion, to nearly 25%
- Year-to-date performance
- TCS down 34%; Sensex down 15%; BSE IT index down 23%
- TCS 52-week range
- High of ₹3,336.70 on February 3; low of ₹1,976 on July 1
Sources
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