TCS Q2 Results Live Updates: Kotak expects modest revenue growth, stable margins
Published on 09/10/2025 12:33 PM
JPMorgan had upgraded TCS to Overweight on August 25 this year, with a price target of ₹3,800.
The brokerage said that TCS growth expectations have bottomed and it should benefit from any recovery in business sentiment.
It also said back then that TCS valuations are two-standard-deviations below their five-year average.
JPMorgan had upgraded TCS in August and also raised its price target, stating that earnings cuts are likely behind.
It also cited reasonable valuations behind the upgrade.
Shares of TCS are now at the highest point of the day, having recovered more than 1.5% from the lows of the day.
The stock is now trading 0.5% higher at ₹3,041.4.
Shares have gained in three out of the four trading sessions this week so far.
The stock had made a 52-week low on October 1, and is now rebounding from those levels.
– Pace of GenAI adoption and deflationary impact on spends
– Updates on the second phase of the BSNL deal
– Potential pick-up in discretionary spending.
– Layoffs of 12,000 employees
– Dependence on H-1B visa and plans for further de-risking
– Impact of JLR cyberattack incident
TCS is likely to report stable EBIT margins during the quarter, despite the wage revision impact.
The wage revisions were effective from September 1.
The wage hike impact will be offset by the depreciation seen in the rupee.
TCS is likely to report muted revenue growth in US Dollar terms.
Morgan Stanley expects the constant currency revenue growth to be a negative 0.2%, Nomura sees that figure to be 0.5% on a sequential basis.
TCS has reported two quarters of negative revenue growth in constant currency terms.
– US Dollar Revenue growth seen at 0.4% to $7,447.4 million
– Revenue in rupee terms may increase by 2.6% from the June quarter to ₹65,114 crore
– EBIT seen growing 3.8% sequentially to ₹16,103 crore
– EBIT margin may expand 20 basis points to 24.7% from 24.5% in June
– Net profit seen 1.8% lower from the earlier quarter to ₹12,528.3 crore
– All estimates are from a CNBC-TV18 poll
A CNBC-TV18 poll is anticipating TCS to report a constant currency revenue growth of 0.2% during the September quarter, in comparison to the June quarter.
In case that happens, it will be time in three quarters that TCS would have reported positive constant currency revenue growth.
TCS will be reporting its September quarter results after market hours on Thursday.
The management will address the media after the results are reported.
Good Morning!
Hello and welcome to the live updates for Tata Consultancy Services’ (TCS) Q2 results.
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