TCS Q2 results today: Press conference cancelled! What you need to know
TCS Q2 earnings: Equirus Securities expects EBIT margins to improve 47 bps largely led by rupee depreciation, which will help compensate headwinds from wage hikes for junior staff.
- Oct 9, 2025,
- Updated Oct 9, 2025 9:05 AM IST
Tata Consultancy Services Ltd (TCS) has reportedly cancelled its scheduled press conference for the second-quarter and half-year FY26 results. However, the company will go ahead with its customary analyst call.
According to reports, the press conference has been called off, as the date coincides with the death anniversary of Ratan Tata, the former Tata Sons Chairman and an iconic figure of the Tata Group. There were reports that Noel Tata and Tata Sons Chairman N Chandrasekaran were summoned to a high-level meeting with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this week amid deepening power struggle inside Tata Trusts. Business Today could not independently verify the accuracy of the reports at this point in time.
As far as September quarter results are concerned, brokerages sees the quarter to be marked by muted growth but stable profitability. Equirus Securities expects dollar revenue for TCS to grow 0.6 per cent QoQ in CC terms. This tepid growth is largely due to expected growth softness in international markets.
Equirus Securities expects EBIT margins to improve 47 bps largely led by rupee depreciation, which will help compensate headwinds from wage hikes for junior staff and ongoing investments. The research house expects steady deal TCV QoQ with one mega deal win announced by TCS in Q2.
Other income is seen dipping QoQ given one-time income in Q1.
According to Nomura, TCS’s consolidated revenue is likely to rise 1.4 per cent year-on-year to about Rs 65,174 crore, while net profit may inch up 4.5 per cent YoY to Rs 12,441 crore. On a sequential basis, revenue is estimated to dip 0.5 per cent in constant currency, weighed down by the waning impact of the large BSNL deal that had boosted the previous quarter.
Margins are expected to stay largely flat, with operational efficiencies offsetting the impact of the company’s annual wage hike, which took effect for one month during the quarter. Analysts also said that TCS’s sharp focus on cost optimisation and strong offshore delivery mix should cushion the margin impact.
Kotak Institutional Equities said the focus will be on the rationale for the planned 12,000 employee separation, the impact on employee morale and costs associated with the separation.
"We expect investor focus on (1) the reasons for the underperformance in growth in developed markets and any potential share losses; (2) whether the impact on demand resulting from the imposition of tariffs by the US subsided; (3) the pace of GenAI adoption and deflationary impact on spends; (4) the impact of GCC ramp-up on the growth of companies and GCC as a growth lever; (5) H-1B dependence and plans for further de-risking; and (6) margin aspirations in light of elevated competitive intensity," it said.
The Street will closely watch the company’s deal wins and Total Contract Value (TCV) for the quarter, with some delayed deals from Q1 likely closing in this period. Commentary around client budgets, discretionary spending, and demand visibility—especially from the US and European markets—will be another key highlight.
The BFSI segment, TCS’s largest vertical, will also be under the spotlight, as global banking clients continue to show caution in tech spending. Meanwhile, investors will look for management commentary on how the company plans to navigate persistent macroeconomic and geopolitical uncertainty.
Tata Consultancy Services Ltd (TCS) has reportedly cancelled its scheduled press conference for the second-quarter and half-year FY26 results. However, the company will go ahead with its customary analyst call.
According to reports, the press conference has been called off, as the date coincides with the death anniversary of Ratan Tata, the former Tata Sons Chairman and an iconic figure of the Tata Group. There were reports that Noel Tata and Tata Sons Chairman N Chandrasekaran were summoned to a high-level meeting with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this week amid deepening power struggle inside Tata Trusts. Business Today could not independently verify the accuracy of the reports at this point in time.
As far as September quarter results are concerned, brokerages sees the quarter to be marked by muted growth but stable profitability. Equirus Securities expects dollar revenue for TCS to grow 0.6 per cent QoQ in CC terms. This tepid growth is largely due to expected growth softness in international markets.
Equirus Securities expects EBIT margins to improve 47 bps largely led by rupee depreciation, which will help compensate headwinds from wage hikes for junior staff and ongoing investments. The research house expects steady deal TCV QoQ with one mega deal win announced by TCS in Q2.
Other income is seen dipping QoQ given one-time income in Q1.
According to Nomura, TCS’s consolidated revenue is likely to rise 1.4 per cent year-on-year to about Rs 65,174 crore, while net profit may inch up 4.5 per cent YoY to Rs 12,441 crore. On a sequential basis, revenue is estimated to dip 0.5 per cent in constant currency, weighed down by the waning impact of the large BSNL deal that had boosted the previous quarter.
Margins are expected to stay largely flat, with operational efficiencies offsetting the impact of the company’s annual wage hike, which took effect for one month during the quarter. Analysts also said that TCS’s sharp focus on cost optimisation and strong offshore delivery mix should cushion the margin impact.
Kotak Institutional Equities said the focus will be on the rationale for the planned 12,000 employee separation, the impact on employee morale and costs associated with the separation.
"We expect investor focus on (1) the reasons for the underperformance in growth in developed markets and any potential share losses; (2) whether the impact on demand resulting from the imposition of tariffs by the US subsided; (3) the pace of GenAI adoption and deflationary impact on spends; (4) the impact of GCC ramp-up on the growth of companies and GCC as a growth lever; (5) H-1B dependence and plans for further de-risking; and (6) margin aspirations in light of elevated competitive intensity," it said.
The Street will closely watch the company’s deal wins and Total Contract Value (TCV) for the quarter, with some delayed deals from Q1 likely closing in this period. Commentary around client budgets, discretionary spending, and demand visibility—especially from the US and European markets—will be another key highlight.
The BFSI segment, TCS’s largest vertical, will also be under the spotlight, as global banking clients continue to show caution in tech spending. Meanwhile, investors will look for management commentary on how the company plans to navigate persistent macroeconomic and geopolitical uncertainty.