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Tata Consultancy Services (TCS), the country’s largest IT services firm, reported a steady rise in hiring during the June quarter, with net headcount addition of 5,090 employees over the previous quarter and 6,071 employees year-on-year.

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– At 13.8%, it is a little more than our comfort zone of 13%

– Will calibrate hiring based on the demand environment

– Not making any decision on wage hike

– BSNL ramp down impacted revenue by 2.8% and international markets declined by 0.5%

– Maintain that International market growth in FY26 will be better than FY25

– Too early to say when growth will come back

– Seeing strong demand in AI and data

– Continued Investments In Long-term Sustainable Growth This Quarter

– Stayed Agile & Adapted To The Dynamic Environment, Delivering Steady Margin

– Industry-leading Profitability & Robust Cash Conversion, Positions Us Well For Strategic Investments

Fortunately, the TCS stock has gone into earnings with very, very low expectations. So, from that perspective, while I might be disappointed given what estimates were, but it doesn’t seem to be something which is way off the mark. In fact, if I force myself to see some of the silver lining, it is the TCV, the number of people, the workforce kind of going up. So, they are gearing up for some sort of improvement, but I don’t think there’s anybody who has any timeline to when things will start looking up. So, this was bound to happen. It’s a quarter that you would want to wish away quickly. Just hum and haw numbers, nothing very spectacular. And that’s the way the numbers seem to be for TCS.

The US-listed shares of Infosys and Wipro, also known as ADRs, are trading with losses in pre-market trading after TCS’ results.

Infosys ADRs are currently trading 0.4% lower, having declined as much as 1%.

Wipro’s ADR continue to trade with losses of 1%.

I would keep on holding to be fair. Our expectation in FY26, we have anyways built in a number of around $31 billion which almost a 3% growth is what we had built in. It will possibly be a slight cut from here but nothing very material. We had anyway expected that the first two quarters would not be that great given the demand scenario that’s there. It’s in the second-half where we believe that there will be with the discretionary demand coming back is what we believe should be back in the second-half of this financial year. I will not advise to cut positions or something. The top line was steeper than expected, but I would not advise to cut positions or something in those lines.

The TCS earnings as such is a no event. However, there are two silver linings – one they have added headcount which is up by 5,000 on a quarter on quarter basis with an increased attrition. So, that is a positive sign, it means that they are optimistic about the demand environment. But also remember 5,000 is on a base of 6,38,000. So, it is nothing very big. At the same time the miss in the revenue is quite sharp. So, I would say this is a little poor number, although TCV is in line with expectation, and some head count is the only silver lining.

TCS has reported a constant currency revenue decline of 3.3% during the quarter.

A CNBC-TV18 poll was working with a 1.4% drop from the previous quarter.

– Constant Currency growth decline is more than what was expected

– Margin has come in line with what we were expecting

– Topline decline is more than anticipated

TCS’ revenue in US Dollar terms has seen a decline of 0.6% on a quarter-on-quarter basis.

The CNBC-TV18 poll had projected a growth of 0.6% from the previous quarter.

The board of TCS has approved a dividend of ₹11 per share at the end of the June quarter.

Record date for the dividend payout has been fixed as Wednesday, July 16.

The dividend will be paid to shareholders on August 4, 2025.

– EBIT At ₹15,514 Crore Vs CNBC-TV18 Poll Of ₹15,623 Crore

– EBIT Margin At 24.5% Vs CNBC-TV18 Poll Of 24.3%

– Net Profit At ₹12,760 Crore Vs CNBC-TV18 Poll Of ₹12,127 Crore

– Rupee Revenue At ₹63,437 Crore Vs CNBC-TV18 Poll Of ₹64,206 Crore

TCS is set to kickstart result for the Nifty 50 companies.

Results expected to be announce anytime now.

Ahead of its first quarter earnings, shares of TCS ended 0.38% higher on Thursday at ₹3,397.30 apiece on BSE. The stock is down nearly 18% so far in 2025.

– Constant currency revenue growth

– Whether the company maintains International revenue growth guidance

– Timing of wage hike

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.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.