TCS shares in focus ahead of Q1 results; Trump tariff impact, BSNL ramp-down in spotlight
Tata Consultancy Services
(
TCS
) will be in focus on Thursday as India's largest IT services company is set to announce its Q1FY26 results today, July 10.
The company is expected to post a modest year-on-year (YoY) growth in profit between 1% and 3%, with estimates ranging from Rs 12,040 crore to Rs 12,416 crore, according to forecasts by four brokerage houses.
Revenue for the quarter ended June 2025 is projected to rise between 2.7% and 3.8% YoY, placing topline expectations in the range of Rs 62,613 crore to Rs 64,993 crore.
Also Read:
These 10 debt-free penny stocks rallied 75-355% in 1 year. Do you own any?
Among the brokerages, Nuvama has the most conservative profit forecast, while InCred is the most bullish. On the revenue front, InCred expects the highest topline, whereas Axis has projected the lowest.
For TCS—currently valued at a market capitalisation of Rs 12.32 lakh crore—analysts anticipate continued pressure from developed markets and a ramp-down in BSNL-related revenues. Margins are expected to decline on a YoY basis but show sequential improvement.
Domestic brokerage firm Kotak Institutional Equities expects TCS to report a profit after tax (PAT) of Rs 12,351 crore in Q1FY26, marking a 2.6% year-on-year (YoY) increase and a 1% rise sequentially. Net sales are pegged at Rs 64,993 crore, reflecting a growth of 3.8% YoY and 0.8% quarter-on-quarter (QoQ).
"We forecast a 0.4% decline in constant currency (c/c) revenue, entirely led by a decline in
BSNL revenues
. We estimate BSNL-related revenue at US$157 million, down US$57 million or 75 bps QoQ. Revenue growth in developed markets is forecast at 0.3%," Kotak said in a note.
According to Nuvama's Q1FY26 earnings preview, PAT is projected at Rs 12,040 crore, indicating a 1.5% YoY growth, but a slight 0.1% decline on a sequential basis. Revenues for the quarter are estimated at Rs 62,613 crore, reflecting a 3.2% YoY increase and a modest 0.2% QoQ rise.
EBIT is forecast at Rs 15,442 crore, up 2% YoY and 1% QoQ. The EBIT margin is expected to settle at 24.7%, a contraction of 30 basis points YoY, but an improvement of 20 basis points sequentially.
Nuvama expects TCS to report a 1% QoQ constant currency (CC) revenue decline and a 1.1% dollar revenue decline, primarily due to the ramp-down in the BSNL project and modest growth in developed markets, with continued weakness in retail and manufacturing. However, BFSI is expected to remain a growth driver.
Meanwhile, InCred estimates PAT at Rs 12,416 crore for Q1FY26, a 3.1% YoY increase and a 1.6% QoQ rise. Revenues are projected at Rs 64,959 crore, up 3.7% YoY and 0.7% sequentially.
Also Read:
Is the chemical sector entering a new supercycle? Top stocks already up 35–135% in 2025
TCS Q4 earnings
Tata Consultancy Services (TCS), India's top software exporter, reported a 1.7% year-on-year decline in consolidated net profit to Rs 12,224 crore for the quarter ended March 2025, compared to Rs 12,434 crore in the same period last year. This was below Street estimates of Rs 12,650 crore.
Revenue from operations, meanwhile, rose 5.3% year-on-year to Rs 64,479 crore, up from Rs 61,237 crore in the same period last year. However, it came in below the ET NOW poll estimate of Rs 64,856 crore.
In Q4, the company reported an operating margin of 24.2% and a net margin of 19.0%. Its delivered strong cash conversion, with operating cash flow at 125.1% of net income.
TCS also posted a record total contract value (TCV) of $12.2 billion for the quarter, with a healthy book-to-bill ratio of 1.6. For the full year, TCV stood at $39.4 billion.
TCS stock performance
On Wednesday,
TCS shares
closed 0.65% lower at Rs 3,384 on the BSE, while the benchmark Sensex slipped 0.21%. The stock has gained 4% in the last three months but is down 18% year-to-date. Over the past three years, TCS has risen just 4%. The company's current market capitalisation stands at Rs 12.24 lakh crore.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
16 minutes ago
- Time of India
Who owns the flat? Bengaluru DCP buys property from one bank, only to find it claimed by another bank; Shocking scam drama unfolds
A Deputy Commissioner of Police (DCP) in Bengaluru has filed a police complaint, claiming that he was cheated by a bank which sold him a flat already mortgaged to another financial institution. The officer, VC Gopala Reddy (DCP, City Armed Reserve - West), alleges that he was misled during an e-auction deal involving Rs 28 lakh. Flat Purchased Through E-Auction, Then Seized by Another Bank According to the complaint, Reddy bought a fourth-floor flat in Sri Shankara Meadows, Kaggalipura, through an e-auction by Jana Small Finance Bank on 24 July 2023. He paid Rs 28 lakh for the flat and received a sale agreement. However, the property was not yet registered in his name. On 8 May 2025, Swarna Bharathi Sahakara Bank issued him a notice, claiming the flat was already mortgaged to them and that he was staying there illegally. The bank later seized the property. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like New Barefoot Shoe Has Seniors Walking Off the Weight Barefoot Vitality Learn More Undo Jana Bank Officials Failed to Disclose Key Information Reddy said he approached Jana Bank officials, named as Rajesh, Babu Srijith, Umesh, and Ranjan, to ask why they didn't inform him about the mortgage. However, he claimed the officials did not respond clearly. He has accused both Jana Bank and Swarna Bharathi Sahakara Bank of hiding facts and cheating him. He also wrote to Jana Bank asking for his Rs 28 lakh to be returned, but got no response. Live Events All Documents Were Verified Before Purchase Reddy said he learnt about the flat through an advertisement and verified all documents, including the e-khata, before bidding. He even sought legal opinion. As no encumbrance was found, he believed the property was clear and proceeded with the purchase. Case Registered Under BNS for Cheating and Fraud Based on Reddy's complaint, the Central Crime Branch (CCB) has registered a case under the Bharatiya Nyaya Sanhita (BNS): Section 316: Criminal breach of trust Section 318: Cheating Police have named the four Jana Bank staff, Jana Small Finance Bank, and Swarna Bharathi Sahakara Bank in the case. An officer said the investigation will reveal who is responsible for the alleged fraud and for not disclosing the loan on the flat. Inputs from TOI
Business Standard
23 minutes ago
- Business Standard
IRB Infra reports 8% YoY jump in Q1 FY26 toll revenue
IRB Infrastructure Developers, along with its InvIT associate IRB Infrastructure Trust, reported combined toll revenue of Rs 1,680 crore for the April-June quarter of FY26, marking an 8% year-on-year increase from Rs 1,556 crore in Q1 FY25. For the month of June 2025, toll collections stood at Rs 544.8 crore, reflecting a 5% year-on-year growth from Rs 517.2 crore in June 2024. The company noted that the early onset of the monsoon this year had a moderate impact on traffic growth during the month. Amitabh Murarka, deputy CEO, IRB Infrastructure Developers, said, It is encouraging to witness sustained growth in toll collections throughout the first quarter of FY26, compared to the same period last yeardespite the early onset of the monsoon in many parts of the country, which had a marginal impact on traffic volumes. He added, Looking ahead, we expect this positive growth trajectory to continue, supported by the anticipated completion of ongoing projects in our portfolio, which will further strengthen revenue visibility. IRB Infrastructure Developers (IRB) is Indias leading and the largest integrated and first multi-national transport infrastructure developer in roads and highways sector. It operates across multiple business models such as build-operate-transfer (BOT), toll-operate-transfer (TOT), and hybrid annuity model (HAM). The company's consolidated net profit jumped 13.7% to Rs 214.72 crore on a 4.3% increase in net sales to Rs 2,149.24 crore in Q4 FY25 over Q4 FY24. The scrip slipped 1.39% to settle at Rs 47.62 on Friday, 12 July 2025.
India.com
31 minutes ago
- India.com
Bad news for Indians going to US as Trump administration takes big decision on visa
Bad news for Indians going to US as Trump administration takes big decision on visa Visa Integrity Fee: The One Big Beautiful Bill has come as a shocker for the Indian traveller who is planning to go to the United States. Under the bill, the US visa will become 2.5 times more expensive from 2026. The American government will charge USD 250 from people visiting the country as an integrity fee, which will be non-refundable. These developments are going to affect Indian students and IT professionals who go to the US for study and job purposes. Additionally, the fee can be changed every year based on the inflation rate. It is worth mentioning that earlier, getting an American visa was not that difficult for students, IT professionals, and tourists. Also, it didn't affect the pocket that much. But after the implementation of the 'One Big Beautiful Bill', travelling to America is going to a burden on pocket for travellers. United States President Donald Trump has passed the new law on July 4, promising to make 'America great again'. Under this law, a new fee will be applicable from 2026 – 'Visa Integrity Fee'. How Much Is Visa Integrity Fee? The Visa Integrity Fee is a new fee of USD250 (approx Rs 21,400), imposed by the Trump administration. This fee will come in force from nest year, 2026 and will be non-refundable in nature. Notably, the fee is not static, which means it can be changed every year depending on the inflation rate. A new visa integrity fee has increased the cost of some visas from Rs 16,000 to over Rs 40,000. Who Will Have To Pay The Visa Integrity Fee? According to the law, the person who is issued a non-immigrant visa will have to pay this fee. It will be collected by the Department of Homeland Security. US-based immigration consulting company Fragomen said that the Visa Integrity Fee is part of a major reform in travel-related fees. This includes a USD24 fee on I-94, a USD13 cost in the Visa Waiver Program and a USD30 EVUS tax imposed on Chinese citizens. As per the law, the person who is issued a non-immigrant visa will have to pay this fee. The fee will be collected by the Department of Homeland Security. US-based immigration consulting company – Fragomen – stated that the new Visa Integrity Fee is part of a major reform in travel-related fees. The fee structure includes- USD24 fee on I-94, a USD13 cost in the Visa Waiver Program and a USD30 EVUS tax imposed on Chinese citizens. It will mostly affect non-immigrant visa holders. Will be applicable on tourist and business visas (B-1/B-2). Students studying in America will have to pay this fee. Professionals going to the US for jobs will have to pay this fee. Individuals with Exchange Visitor Visa (J) will also have to pay this fee. Diplomatic visa holders (A and G categories) will be exempted. How Much More Expensive Will The US Visa Be Now? Currently, US B-1/B-2 visa fees are USD185. A significant price increase is scheduled for 2026. Visa fee – USD185 (Rs 15000) Visa Integrity Fee – USD250 (approx Rs 21,400) I-94 fee- USD24 (Rs 2,000) ESTA fee- USD13 (approx Rs 1200) Total fee- USD472 (approx Rs 40,000)
