IT bellwether Tata Consultancy Services (TCS) will kick off the fiscal first quarter earnings season with the company releasing its Q1 results on July 10, 2025. “Tata Consultancy Services Limited will announce its results for the first quarter of FY 2026, ended June 30,2025 on Thursday, July 10, 2025, after-market trading hours,” it said in a regulatory filing. After the release of the Q1 numbers, the leadership team will address a press conference at 5:30 pm on the same date.
According to analysts, TCS is expected to report Q1FY26 profit growth in the range of 0.4- 3.1 per cent on-year. The revenue for the period in review is estimated at around Rs 64,000 crore, reporting a growth in the range of 2.7- 4.3 per cent YoY.
For the fourth quarter of FY25, TCS had reported a net profit of Rs 12,224 crore, posting a drop of 1.6 per cent year-on-year, compared to Rs 12,434 crore in Q4 FY24. It had posted revenue from operations at Rs 64,479 crore, up 5.29 per cent as against Rs 61,237 crore during the same period of previous financial year. The company EBIT stood at Rs 15,601 crore.
TCS CEO K Krithivasan had maintained that the IT company’s order book might have been stronger if global uncertainties—stemming from tariffs imposed by US President Donald Trump—had not continued.
Key expectations for TCS’ Q1 results
The IT major is expected to post a sequential decline in both the bottom and top lines, weighed by the ramp-down in key deals. Analysts said that TCS’ revenue growth is likely to be modest in constant currency terms, with foreign exchange gains providing support in reported figures.
Nuvama said, “We expect TCS to deliver -1.0 per cent QoQ CC revenue growth and +1.1 per cent QoQ USD decline, primarily due to a ramp down in BSNL project and modest growth in developed market with weakness in retail & manufacturing while BFSI will continue to grow.”
Kotak Institutional Equities forecasted revenue decline of 0.4 per cent in CC, led entirely by decline in BSNL revenues. “We forecast revenues of $157 million, down $57 million or 75 bps QoQ. We forecast revenue growth of 0.3 per cent in developed markets,” it said.
Meanwhile, the EBIT margins are expected to remain stable or see a slight improvement. This will be driven by the near-completion of the BSNL project, deferral of wage revision, and continued growth in international markets. Elara Capital said, “We expect TCS to report a 20bp QoQ margin on cost moderation related to the BSNL project as well as deferment of wage hikes for Q1.”
Kotak Institutional Equities added that despite tailwinds from currency, EBIT margin will stay flat sequentially. In terms of deal, the brokerage firm projected deal wins of $8-9 billion, flat on YoY comparison. “Focus will be on reasons for struggle for growth in international business despite strong deal wins. Client ramp downs seemed to have played a part,” it added.
Key things to watch out for
In terms of key monitorables, brokerage firms said, investor focus is expected to be on:
(1) commentary on deal TCV/ pipeline and new deal wins with BSN;
(2) impact of tariff uncertainty on demand across verticals with special focus on manufacturing and retail verticals;
(3) reasons for underperformance in growth in developed markets;
(4) outlook in financial services and healthcare verticals and any loss of share to insourcing at large clients;
(5) reasons for weak margin performance;
(6) impact of GCC ramp-up on growth of companies and GCC as a growth lever;
(7) pace of adoption of enterprise GenAI adoption and its deflationary impact; and
(8) levers to defend and increase margins;
(9) outlook on wage hikes;
(10) dividend announcement.
Estimates from brokerage firms:
Nuvama
Revenue
Rs 64,600.70 crore; Up 3.2% YoY
EBIT
Rs 15,749.60 crore; Up 2.0% YoY
PAT
Rs 12,214.80 crore; Up 1.5% YoY
Kotak Institutional Equities
Revenue
Rs 64,992.60 crore; Up 3.8% YoY
EBIT
Rs 15,784.10 crore; Up 2.2% YoY
Adjusted net profit
Rs 12,350.80 crore; Up 2.6% YoY
Axis Securities
Revenue
Rs 64,301 crore; Up 2.7% YoY
PAT
Rs 12,352 crore; Up 0.7% YoY
EBIT
Rs 15,947 crore; Up 3.3% YoY
InCred Equities
Revenue
Rs 64,959.40 crore; Up 3.7% YoY
EBIT
Rs 15,850.10 crore; Up 2.6% YoY
Profit
Rs 12,416.40 crore; Up 3.1% YoY
HDFC Securities
Net sales
Rs 64,935.00 crore; Up 3.7% YoY
EBIT
Rs 15,786.00 crore; Up 2.2% YoY
APAT
Rs 12,354.00 crore; Up 2.6% YoY
Elara Capital
Revenue
Rs 64,841.30 crore; Up 3.6% YoY
EBIT
Rs 15,849.20 crore; Up 2.6% YoY
Adjusted net profit
Rs 12,209.80 crore; Up 1.4% YoY
JM Financial
Revenue
Rs 64,876.80 crore; Up 3.6% YoY
EBIT
Rs 15,610.20 crore; Up 1.1% YoY
Net profit
Rs 12,088.40 crore; Up 0.4% YoY
