By:- B.T Team
Image Credit:- Google
Tata Consultancy Services (TCS) is set to report Q2 earnings, projecting a 6-11% YoY profit growth on a 7-8% rise in sales.
TCS Q2 Results Overview
Watch for insights on deal pipeline, pricing trends, growth outlook, margins, and any interim dividend announcements.
Key Focus Areas
Deal Wins Forecast
Analysts expect TCS to secure $9-$11 billion in deal wins this quarter, crucial for offsetting BSNL’s impact in FY26.
Ebit Margin Insights
Margins may contract by 43 bps due to wage hikes, with a flat margin anticipated as headwinds from BSNL and developed markets weigh in.
Expected Q2 revenue: ₹64,389 crore, a 7.9% YoY increase. Performance may vary, with TCS outperforming Infosys but lagging behind HCL Tech.
Revenue Growth Expectations
YoY Profit Growth
Profit projected at ₹12,591 crore, marking an 11% YoY rise, outpacing Infosys and Wipro but trailing Tech Mahindra.
Management Commentary
Investors await management insights on US BFSI demand, EU market conditions, deal ramp-ups, and the impact of Ratan Tata's passing.
Market Outlook
Attention will be on overall deal pipeline, significant signings, and potential margin pressures from large efficiency deals.
TCS’s growth may exceed peers: Infosys (10.8%), HCL Tech (9%), and Wipro (10.3%), but is lower than Tech Mahindra’s estimated 23%.
Conclusion
TCS’s Q2 results will be pivotal, with key metrics providing insights into the company's resilience and future growth trajectory.