TCS share price today: Shares of IT services major Tata Consultancy Services (TCS) were in focus ahead of the company’s announcement of its earnings for the January-March quarter of fiscal 2026 (Q4FY26). The IT sector is expected to have a subdued quarter, with revenues likely to remain flat due to the ongoing geopolitical situation, as a significant portion of clients is based overseas.
TCS Q4 Results: Earnings expectations
Analysts at Equirus Securities expect a subdued quarter for TCS in Q4FY26, with US dollar revenue projected to grow just 1.3 per cent quarter-on-quarter (Q-o-Q) in constant currency (CC) terms, including 0.9 per cent organic CC growth. While the India business is expected to see a Q-o-Q dip, the international segment is likely to register stronger growth, with 1.7 per cent CC and 1.3 per cent organic Q-o-Q growth.
According to the brokerage, earnings before interest and tax (Ebit) margins are expected to improve by 24 basis points (bps), supported by Rupee (INR) depreciation against the US dollar and cost/productivity gains, which should offset headwinds from wage hikes for mid-to-senior staff and ongoing investments. It also expects a healthy total contract value (TCV) for deals on a Q-o-Q basis.
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Analysts at Kotak Institutional Equities expect the IT major to report 1.2 per cent Q-o-Q growth in CC terms, with 0.8 per cent from organic growth and a 40 bps contribution from the Coastal Cloud acquisition. The brokerage sees faster growth in international business, while the India business may decline slightly. Ebit margins are expected to remain stable, as headwinds from wage revisions and the Coastal Cloud acquisition are likely offset by rupee depreciation.
Deal TCV is projected at $9-10 billion, down 22 per cent Y-o-Y due to the absence of mega-deal closures, though largely stable Q-o-Q. Investors are watching for TCS’s progress in agentic AI and its impact on AI deflation assumptions, the timeframe for growth convergence with peers, GCC ramp-up as a growth lever, planned data centre investments, strategic areas for inorganic expansion, and margin aspirations amid elevated competitive intensity.
Axis Securities expects TCS to report revenue of ₹68,814 crore, up 2.6 per cent Q-o-Q and 6.7 per cent Y-o-Y, driven by growth in BFSI, hi-tech, and cross-currency tailwinds. Ebit is projected at ₹17,479 crore, reflecting a 3.5 per cent Q-o-Q and 11.6 per cent Y-o-Y growth, with margins improving 23 bps Q-o-Q to 25.4 per cent.
According to the brokerage, profit is estimated to stand at ₹13,676 crore, up 27.6 per cent Q-o-Q and 11.2 per cent Y-o-Y, translating into an EPS of ₹37.8, compared with ₹34 in Q4FY25. Key aspects to watch include the deal pipeline, vertical-specific commentary, and the outlook for FY27, it added.
