TCS Q2 results, dividend on Thursday, October 9: Deal wins, wage hike impact & more
TCS Q2 results preview: Nomura expects TCS to report a 4.5 per cent YoY growth in net profit at Rs 12,441.70 crore for the September quarter compared with Rs 11,909 crore in the same quarter last year.
- Oct 7, 2025,
- Updated Oct 7, 2025 3:00 PM IST
IT major Tata Consultancy Services Ltd (TCS) will announce its September quarter results on Thursday, October 9, 2025. Alongside the earnings, the K Krithivasan-led board will also consider declaring a second interim dividend for FY26.
IT analysts said the quarter was able to clear out a few uncertainties in respect of tariff impacts and H1B visa costs. Some of the deals, which were paused in Q1, would have closed out in Q2, they said while expecting total contract value (TCV) to be skewed toward large deals.
Small deals and discretionary spending will remain weak, Nirmal Bang said as it expect TCS to deliver TCV above the guided range of $7-9 billion despite some delays in decision making.
"We will look out for comments on the lay-offs and impacts, if any," it said.
Investors would also be keenly following client discretionary spend in wake of rising macro volatility in US and commentaries on cost takeout projects and BFSI vertical. There would be a one-month impact of wage hike in Q2 and analysts largely see flattish margin sequentially.
Foreign brokerage Nomura expects TCS to report a 4.5 per cent YoY growth in net profit at Rs 12,441.70 crore for the September quarter compared with Rs 11,909 crore in the same quarter last year. Revenue is seen rising 1.4 per cent YoY to Rs 65,174 crore from Rs 64,259 crore YoY.
"We expect revenue to decline by 0.5 per cent QoQ in CC terms, mainly led by falling contribution from BSNL project. Developed market business should have modest growth q-q, in our view. We expect EBIT margin to be flat QoQ due to lower contribution from margin-dilutive BSNL project offset by partial impact of salary," it said.
Nuvama sees TCS (0.2 per cent projection) lagging Infosys (1.8 per cent), HCL Tech (1.5 per cent) and Tech Mahindra (0.9 per cent) in terms of sequential revenue growth in constant currency terms (CC). It believes India business will remain flat with the BSNL deal ramp down complete in Q1. Margin is seen improving 20 basis QoQ despite one month of wage hike impact.
"We will watch out for the outlook on US macro amid the tariff uncertainty and update on employee restructuring," it said as it projected 2.3 per cent YoY rise in profit at Rs 13,058 crore on 2.1 per cent rise in sales at Rs 64,738 crre. Ebit margin is seen at 24.7 per cent. Meanwhile, if approved, the record date for determining eligible shareholders will be Wednesday, October 15.
IT major Tata Consultancy Services Ltd (TCS) will announce its September quarter results on Thursday, October 9, 2025. Alongside the earnings, the K Krithivasan-led board will also consider declaring a second interim dividend for FY26.
IT analysts said the quarter was able to clear out a few uncertainties in respect of tariff impacts and H1B visa costs. Some of the deals, which were paused in Q1, would have closed out in Q2, they said while expecting total contract value (TCV) to be skewed toward large deals.
Small deals and discretionary spending will remain weak, Nirmal Bang said as it expect TCS to deliver TCV above the guided range of $7-9 billion despite some delays in decision making.
"We will look out for comments on the lay-offs and impacts, if any," it said.
Investors would also be keenly following client discretionary spend in wake of rising macro volatility in US and commentaries on cost takeout projects and BFSI vertical. There would be a one-month impact of wage hike in Q2 and analysts largely see flattish margin sequentially.
Foreign brokerage Nomura expects TCS to report a 4.5 per cent YoY growth in net profit at Rs 12,441.70 crore for the September quarter compared with Rs 11,909 crore in the same quarter last year. Revenue is seen rising 1.4 per cent YoY to Rs 65,174 crore from Rs 64,259 crore YoY.
"We expect revenue to decline by 0.5 per cent QoQ in CC terms, mainly led by falling contribution from BSNL project. Developed market business should have modest growth q-q, in our view. We expect EBIT margin to be flat QoQ due to lower contribution from margin-dilutive BSNL project offset by partial impact of salary," it said.
Nuvama sees TCS (0.2 per cent projection) lagging Infosys (1.8 per cent), HCL Tech (1.5 per cent) and Tech Mahindra (0.9 per cent) in terms of sequential revenue growth in constant currency terms (CC). It believes India business will remain flat with the BSNL deal ramp down complete in Q1. Margin is seen improving 20 basis QoQ despite one month of wage hike impact.
"We will watch out for the outlook on US macro amid the tariff uncertainty and update on employee restructuring," it said as it projected 2.3 per cent YoY rise in profit at Rs 13,058 crore on 2.1 per cent rise in sales at Rs 64,738 crre. Ebit margin is seen at 24.7 per cent. Meanwhile, if approved, the record date for determining eligible shareholders will be Wednesday, October 15.