Today, all eyes are on India’s largest IT services giant, Tata Consultancy Services (TCS), as it officially kicks off the Q1 earnings season. The details are that the company will announce its results for the quarter ending June 30, 2025, after market hours on July 10, 2025.
This is the much-anticipated press conference with TCS leadership is scheduled for 5:30 PM, where market watchers expect insights into deal momentum, margin trends, and vertical-specific performance. This quarter is crucial, as investors and analysts await clarity on the impact of global macro headwinds, the wind-down of the BSNL project, and subdued demand in key sectors like retail and manufacturing. While revenue estimates hover around ₹64,000 crore, profit growth is expected in the range of 0.4% to 3.1% YoY.
This spotlight will also be shared by GenAI commentary, wage hike deferment, and deal win pipeline, making this result a key indicator for the broader Indian IT landscape.
TCS Q1 Results: Sequential Pressures, Margins In Focus
In the last quarter (Q4 FY25), TCS clocked a net profit of rs 12,224 crore, though that came with a 1.6% dip year-on-year. Revenue stood at rs 64,479 crore. Now, as we gear up for the Q1 FY26 numbers, analysts are bracing for a mild sequential dip in both revenue and profit. Why the cautious tone? Two words: BSNL ramp-down. The scaling back of this major project, coupled with sluggish momentum in retail and manufacturing, seems to be weighing on growth. But not everything’s gloomy—BFSI continues to hold strong, offering some cushion
Nuvama notes, “We expect TCS to deliver -1.0% QoQ CC revenue growth.” Meanwhile, Kotak Institutional Equities predicts a dip in revenue to $157 million—down $57 million QoQ. Still, forex gains could come to the rescue and make the reported numbers look a bit better. So, should investors worry? Not just yet—but keep your popcorn ready
TCS Q1 Results: Margins May Hold Steady Despite Pressures
Despite the revenue headwinds, analysts project steady or slightly improved EBIT margins, supported by cost moderation, deferment of wage hikes, and the near completion of the BSNL project. Elara Capital noted, “We expect TCS to report a 20bp QoQ margin on cost moderation.” Kotak expects EBIT margins to remain flat. Investor focus will likely shift to deal wins, especially commentary around pipeline, wage hike timing, and whether client ramp-downs will continue to weigh on growth.
Top 10 Key Things To Watch In TCS Q1 Results
- Deal Wins and TCV Pipeline Updates
Investors will look for updates on new deal signings and total contract value (TCV) to gauge future revenue visibility. - Impact of US Tariff Uncertainty
Commentary on how ongoing geopolitical and tariff-related tensions, especially from the US, are affecting global client spending. - Developed Markets’ Weak Performance
Focus will be on why North America and Europe are seeing slower growth, despite TCS’s strong client base there. - BFSI and Healthcare Outlook
These verticals are key revenue drivers; insights into demand trends and budget allocations in these sectors are crucial. - Margin Movement and Wage Hike Updates
Investors will watch for changes in EBIT margins, along with any commentary on the timing and scale of wage hikes. - GenAI Adoption Impact
Expect updates on enterprise adoption of Generative AI and whether it’s driving revenue or causing deflationary pressure. - GCC Ramp-Up Contribution
Growth of Global Capability Centers (GCCs) and how they are contributing to business expansion will be in focus. - Dividend Declaration
Markets will await news on any interim dividend payout, as TCS has a history of consistent shareholder returns. - Revenue from BSNL Project
Analysts will assess the revenue hit from the ramp-down of the large BSNL deal and its impact on Q1 numbers. - Commentary on Client Insourcing
Insights into whether clients are pulling work back in-house, which could impact TCS’s long-term growth prospects.
Brokerage Estimates for TCS Q1 FY26
| Brokerage | Revenue (₹ Cr) | EBIT (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|
| Nuvama | 64,601 | 15,750 | 12,215 |
| Kotak | 64,993 | 15,784 | 12,351 |
| Axis Securities | 64,301 | 15,947 | 12,352 |
| InCred Equities | 64,959 | 15,850 | 12,416 |
| HDFC Securities | 64,935 | 15,786 | 12,354 |
| Elara Capital | 64,841 | 15,849 | 12,210 |
| JM Financial | 64,877 | 15,610 | 12,088 |
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