TCS To Report Q4 And FY Results. Here's What To Expect.

As India’s Q4 earnings season begins, all eyes turn to the IT sector, with Tata Consultancy Services (TCS) set to kick off results. On Market Today with Business Today TV, Sharad Avasthi, Head of Research (PCG) at SMIFS, offers a cautious yet insightful outlook on what lies ahead for IT companies. Avasthi believes the overall mood across the IT industry is one of nervousness, shaped by global uncertainty, tariff tensions, and cautious sentiment in client geographies like the U.S. and Europe. He anticipates that most IT firms will offer subtle or conservative guidance for FY26, with many potentially avoiding formal guidance altogether. The tone is expected to be muted, especially due to the typical seasonality of Q4 and ongoing concerns around discretionary spending and delays in client budgets. TCS, India’s largest IT services firm, will report its Q4 earnings during a market holiday, with reactions expected the following trading day. As per estimates by Kotak Institutional Equities, TCS is expected to post revenue of ₹64,964 crore in the March 2025 quarter, marking a modest growth of 1.5% from ₹63,973 crore in the previous quarter. In US dollar terms, revenue is likely to decline by 0.5% to $7,502 million from $7,539 million QoQ. In constant currency (CC) terms, revenue is forecast to fall 0.3% QoQ, impacted by a flat international performance and a $30 million revenue dip from BSNL. Despite rupee depreciation, internal cost pressures are likely to offset margin gains. Sharad Avasthi further notes that while deal wins have supported the sector in recent quarters, even that momentum may soften this time. Margin improvement remains elusive, and commentary on new deals may be subdued. However, he emphasises that most of the expected weakness is already priced into stock valuations, so any negative surprise may not trigger a major correction—barring a one-day market reaction. Investors should closely track client commentary, especially around BFSI and manufacturing clients, where stress may spill over due to global macro concerns. The real concern, he says, lies in the outlook—where nervous energy in boardroom discussions is likely to be reflected in management commentary. Still, he expects the situation to stabilise by the next quarter. Will the Q4 numbers confirm fears or offer some surprise resilience? And how should investors approach IT stocks amid this cautious sentiment? Watch this special segment for an in-depth breakdown ahead of TCS earnings and more on what lies ahead for India’s tech giants this quarter.