Here are five things to keep your eyes on for TCS results:
TCS’ revenue in dollar terms is likely to decline marginally by 0.1% to $7,611 million compared to $7,621 million in the previous quarter, as per a panel of analysts polled by CNBC-TV18.
However, its rupee revenue is projected to increase 1.6% to ₹71,847 crore from ₹70,698 crore sequentially. Constant currency revenue growth is seen at 0.15%. The Coastal Cloud acquisition could cushion the US Dollar revenue growth by 10 to 20 basis points.
The company’s profit after tax (PAT) is likely to be decline 2.1% to ₹13,461 crore from ₹13,781 crore sequentially.
TCS is likely to report earnings before interest, and tax (EBIT) of ₹17,348 crore in the June quarter compared to ₹17,870 crore in the previous one, while EBIT margin may narrow by 120 basis points to 24.15% from 25.3% sequentially, as per the CNBC-TV18 poll.
EBIT margins may decline sequentially by 120 basis points due to wage hikes, which could be partially offset by a weaker rupee which could provide a 40-50 basis points buffer.
There could also be a one-time legal expense provision of $70 million in the June quarter.
Analysts expect a steady order book with quarterly deal wins in the $7 billion to $10 billion range. In the fourth quarter, the same was $12 billion.
For the financial year 2026, its revenue declined 0.5% in dollar terms while EBIT margin stood at 25%, the highest in four years.
Besides the headline numbers, here are some of the other data points to watch ahead of TCS results:
At the current price, shares of TCS are trading around 14 times their estimated price-to-earnings for financial year 2028, well below their historical averages.
Shares of TCS are trading 0.4% lower on Wednesday at ₹2,088. The stock has declined 3% over the last one month.
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