TCS Q2 results, dividend on October 8: Will earnings lift stock after 35% fall in 2026?

The K Krithivasan-led Tata Consultancy Services Ltd (TCS) is likely to report a 5-14 per cent year-on-year (YoY) rise in net profit for the September quarter on 8-11 per cent increase in net sales for the same period. Dollar revenues may rise about 0.5 per cent quarter-on-quarter (QoQ), while revenue growth in constant currency terms (CC)  may come in at 0.6-0.7 per cent, analsyts projected. Operating margin is seen falling 70-100 basis points YoY. Deal wins momentum may stay strong.

HDFC Institutional Equities sees TCS deal wins in the $8-10 billion range. This brokerage sees TCS Q2 net profit rising 5.4 per cent YoY to Rs 13,639 crore on 11.1 per cent YoY rise in net sales at Rs 73,081 crore.

Emkay Global expects TCS to report 6.6 per cent YoY rise in net profit at Rs 13,751 crore for the quarter on 11.1 per cent YoY rise in net sales at Rs 73,081 crore. The domestic brokerage sees dollar revenue at $7,662 million, up or 0.5 per cent QoQ. The CC sales growth is seen at 0.7 per cent. Emkay said Ebit margin for the quarter may fall 70 bps YoY (up 50 bps QoQ) to 24.5 per cent.

TCS may deliver 0.6 per cent QoQ CC revenue growth and 0.5 per cent QoQ dollar revenue growth, said Nuvama Institutional Equities. The modest growth will be impacted by a slower-than-expected pickup in the second half of the quarter amid heightened geopolitical uncertainty.

TCS dividend 
TCS has fixed Wednesday, October 14, as the record date if the second interim dividend is declared. The dividend will be paid to the equity shareholders whose names appear in the register of members of the IT firm or in the records of the depositories as beneficial owners of the shares as on that day.

TCS dividend history
History suggests TCS has declared incrementally higher dividends post Q2 results. In the second quarter last year, TCS declared an interim dividend of Rs 11 per share for FY26. It announced a dividend of Rs 10 per share in October 2024, Rs 9 per share in October 2023, Rs 8 per share in October 2022.

TCS dividend in FY27
It declared Rs 110 per share in dividends for FY26, with a dividend yield of 4.66 per cent, amounting to 28,583 crore. This included Rs 11 per share dividend each in the first three quarters, a special dividend of Rs 46 per share in the December quarter (Q3) and a final dividend of Rs 31 per share.

TCS target price targets

Ahead of its quarterly earnings, TCS had 12-month Bloomberg consensus target of Rs 2,398, implying 14.9 per cent potential upside. The stock is down 35 per cent in 2026 so far. Among recent targets, Investec suggested 'Buy' with a target of Rs 3,204.,  MOFSL finds the stock worthy of rs 2,400. CLSA, which has a 'Hold' on TCS, suggested a target of Rs 2,060.  Choice Broking, Antique Stock Broking , Centrum and PL Capital have TCS targets in the range of Rs 2,170 and Rs 3,480.