Archive · 8 Oct 2026
TCS Shares Rise Ahead of Q2 Results as Experts Weigh Outlook
TCS shares went up before the company was due to announce its latest quarterly results.
Analysts think the company’s revenue may grow only a little from the previous quarter.
They expect business from areas such as international markets, banking and manufacturing to help.
Some analysts think profit margins could improve from the previous quarter, while another expects them to remain steady and be lower than a year ago.
Spending on AI, hiring and partnerships could affect margins.
Experts also pointed to cautious customer spending and uncertainty as risks.
One analyst advised investors to wait for a stronger signal before buying.
Another said long-term investors may see an opportunity if they can be patient.
The shares had still fallen about 34% since the start of the year.
TCS shares rose nearly 3% on October 8 ahead of its September-quarter Q2FY27 results; reported prices varied slightly by exchange and source.
Brokerages generally forecast about 0.5%–0.6% quarter-on-quarter constant-currency revenue growth, with international business, BFSI and manufacturing among cited supports.
Analysts differed on margins: Motilal Oswal expected nearly 100 basis points of sequential expansion, while Kotak projected a 100-basis-point year-on-year decline but stable sequential margins.
Experts cited AI and cloud opportunities, deal wins and operational efficiency as supports, while cautious spending, geopolitical uncertainty and investment costs could constrain growth.
TCS was down about 34% year to date; one technical analyst advised waiting for confirmation before buying, while another expert saw long-term potential for patient investors.
- Who
- Tata Consultancy Services (TCS), analysts and investors.
- What
- TCS shares rose ahead of its Q2FY27 results, while analysts offered forecasts and differing views on the stock.
- When
- Thursday, October 8, ahead of results for the quarter ended September 30, 2026.
- Where
- Trading on the BSE and NSE in India.
- Why
- The reports describe the rise as occurring ahead of results but do not establish a specific cause.
Reasons for optimism
Reasons for caution
Growth and business outlook
Reasons for optimism
Analysts cited international business, BFSI and manufacturing, large deal wins, operational efficiency, and AI and cloud opportunities as potential supports.
Reasons for caution
Forecast growth was modest, and analysts cited softer consumer demand, cautious discretionary spending, geopolitical uncertainty and muted demand as risks.
Margins
Reasons for optimism
Motilal Oswal expected nearly 100 basis points of sequential margin expansion, partly as the impact of annual wage increases reverses.
Reasons for caution
Kotak expected a 100-basis-point year-on-year margin decline due to wage hikes, acquisitions and pricing pressure; Motilal also noted AI, talent and partnership investment could weigh on margins.
Whether to buy
Reasons for optimism
Seema Srivastava said long-term investors could consider accumulating quality market leaders during macroeconomic lulls.
Reasons for caution
Mahesh M Ojha said the stock remained in a bearish trend and advised avoiding fresh buying until stronger results or a positive trigger confirmed a reversal.
- Quarter under review
- Q2FY27, the quarter ended September 30, 2026
- Share move
- Nearly 3% intraday rise on October 8
- Reported intraday high
- About ₹2,142; reports cite ₹2,142 on the BSE and ₹2,141.50 on the NSE
- Revenue forecasts
- Brokerage estimates cited range from 0.5% to 0.6% quarter-on-quarter constant-currency growth
- Margin forecasts
- Motilal Oswal expected nearly 100 basis points of sequential EBIT margin expansion; Kotak expected stable sequential margins and a 100-basis-point year-on-year decline
- Year-to-date performance
- Down about 34%; one report gives 34.04%
- 52-week range
- ₹1,976 low on July 1 and ₹3,336.70 high on February 3, as reported
