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Indian IT companies saw inflows worth ₹2,489 crore in the last two weeks of June after sustained withdrawals.

You can on that here.

– Expect constant currency revenue growth of a negative 0.6% with a 208 basis points cross currency tailwind, which can translate into a 1.5% sequential US Dollar revenue growth

– Expect $50 million decline in BSNL deal; ex-regional market, we expect 0.5% constant currency growth sequentially.

– Expect revenue weakness to offset the impact of lower BSL deal, resulting in flattish margins.

The Nifty IT has underperformed the index by nearly 17% since the start of 2025.

Valuation multiples are similar to five-year averages for most of those names.

But the question is, with muted revenue and earnings CAGR expected, are valuations cheap?

TCS remains one of the few IT majors were the number of “buy” recommendations from analysts outnumber those with a “sell” rating.

70% of the 50 analysts who cover the stock have a “buy” rating, 12 say “hold”, while three have a “sell” recommendation on the stock.

Shares of Tata Consultancy Services Ltd. (TCS) are trading flat on Thursday, July 10, ahead of the company’s June quarter earnings announcement. The stock of the IT major was trading with minor losses at ₹3,370 apiece.

– Forecast constant currency revenue to drop 0.4%

– Revenue drop will be led entirely by the drop in BSNL revenue

– Developed markets could grow 0.3% this quarter

– EBIT margins may decline year-on-year despite no wage revision this quarter and stay flat QoQ

– Client ramp-downs seen playing a part in growth underperformance

– Expect quarter to be a mixed one

– Mid-tier IT services companies can report strong growth

– ERD names will disappoint this quarter

– Deal wins will be strong, although that will not necessarily be net new for the industry.

– Coforge to lead growth, followed by Persistent, Hexaware and Mphasis

– UBS maintained its “buy” rating on UBS in April this year with a price target of ₹4,250.

– North America order book was encouraging

– Management did call out seeing deal deferrals & delayed decision making in some segments during quarter, they continue to see robust deal momentum in North American BFSI (ex insurance).

– Despite the macro uncertainty, management sees possibility of FY26E to be better than FY25.

– See slight improvement in revenue growth forecast

– Thesis of two years of muted revenue CAGR remains intact

– Deal pipeline and commentary confirm weak discretionary and vendor consolidation opportunities

– Any rally should be used as a good opportunity to trim

– Within largecaps like TCS, Infosys & Wipro Over HCLTech, LTIMindtree & Tech Mahindra

– Broader discretionary spend remains muted amidst an uncertain macro

– Cost optimisation and vendor consolidation theme has picked up

– BFSI, the mainstay of global IT services spending, continues to see strong demand

– Demand in most of the other verticals remains muted, particularly in retail and auto

– Expect a V-shape recovery in coming quarters while valuations remain attractive

– Infosys, Tech Mahindra and Persistent Systems are top picks

– US Dollar revenue had declined 1% quarter-on-quarter

– EBIT margins fell by 30 basis points from the previous quarter to 24.2%

– Deal wins remained strong at $12.2 billion from $10.2 billion

– Regional markets grew but communication, life sciences and consumer business revenue fell

International business growth for TCS will be a key factor to watch this time around.

During the March quarter, TCS’ international business grew by 0.6% on a sequential basis in constant currency terms.

Goldman Sachs is expecting a 1% growth in the first quarter. The management had said that FY26 will be better for the international business compared to FY25.

Here’s how deal wins have fared so far for TCS in the earlier quarters:

– Q1 FY24 – $10.2 billion

– Q2 FY24 – $11.2 billion

– Q3 FY24 – $8.1 billion

– Q4 FY24 – $13.2 billion

– Q1 FY25 – $8.3 billion

– Q2 FY25 – $8.6 billion

– Q3 FY25 – $10.2 billion

– Q4 FY25 – $12.2 billion

TCS is likely to report EBIT margins that are likely to remain at similar levels compared to the March quarter, despite no wage hikes taking place.

The question is, why are margins not improving despite lower revenue contribution from the low margin BSNL deal?

There is a currency tailwind of 200 bps expected, which is why the US Dollar revenue is seen up 0.6% but constant currency revenue growth is seen 1.4% lower, driven by the sharp depreciation of the USD compared to major global currencies such as the British Pound, the Euro, and the Japanese Yen.

TCS is likely to report a decline of 1.4% in revenue in constant currency terms on a sequential basis, according to the CNBC-TV18 poll.

For financial year 2025, the constant currency revenue growth stood at 4.2%, compared to 3.4% in financial year 2024.

– US Dollar revenue seen 0.6% higher at $7,513 million

– Rupee revenue seen down 0.4% at ₹64,206 crore

– EBIT seen little changed at ₹15,623 crore from ₹15,601 crore

– EBIT margin seen at 24.3% from 24.2% last year

– Net profit seen 0.8% lower at ₹12,127 crore

– Numbers compared on a quarter-on-quarter basis

As per the CNBC-TV18 poll, the company’s US Dollar revenue and net profit are both likely to see little change compared to the December quarter.

Margins are also likely to remain stable around the previous quarter levels. On a constant currency basis, TCS’ revenue is likely to decline 1.4% from the December quarter.

Hello and welcome to CNBC-TV18’s live coverage of Tata Consultancy Services (TCS) results for the June quarter.

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