Latest news with #BSNL-related
New Indian Express
5 days ago
- Business
- New Indian Express
TCS Q1 FY26 Results: Why they impact all other IT stocks
CHENNAI: On Thursday, July 10, India's benchmark indices dipped modestly as investors grew cautious ahead of Tata Consultancy Services' (TCS) quarterly earnings announcement. The Nifty 50 declined by 0.19% and the Sensex by 0.16%, with weakness led by the IT sector. The Nifty IT index fell approximately 0.7% in early trade. TCS is scheduled to announce its Q1 FY26 results after market hours today. Investor Sentiment Before Results TCS shares opened around 0.5% lower, reflecting investor expectations of a subdued quarter. Market participants pointed to a slowdown in ramp-ups of certain deals and client-specific headwinds, including the phased-out BSNL contract, as key concerns. Leading brokerages anticipated a slight sequential decline in TCS's revenue and profit for Q1 FY26. Revenue was expected to drop between 0.2% and 3.4% quarter-on-quarter in constant currency, primarily due to the loss of BSNL-related revenue. Margins were projected to remain under pressure amid muted growth and operating leverage constraints. Investors and analysts were also closely watching for updates on TCS's GenAI-related contracts and the strength of its deal pipeline, given the growing industry focus on artificial intelligence-driven services. An analyst from a foreign brokerage noted that external factors such as ongoing uncertainty around U.S. tariffs and delayed trade negotiations were contributing to investor caution. Additionally, rising global inflation could weigh on corporate IT spending, particularly among TCS's U.S.-based clients. Outlook A strong earnings performance by TCS has the potential to boost sentiment across the entire IT sector, often setting the tone for the broader IT earnings season. Key indicators for investors to monitor include trends in the order book and traction in GenAI initiatives during TCS's and its peers' upcoming earnings calls. Broader macroeconomic developments in the U.S., including tariff policies and trade relations, remain significant as they can influence client spending patterns. Currency fluctuations and inflation trends will also be critical factors impacting margins and deal valuations in the near term.
Time of India
5 days ago
- Business
- Time of India
TCS shares in focus ahead of Q1 results; Trump tariff impact, BSNL ramp-down in spotlight
Shares of 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)
News18
5 days ago
- Business
- News18
TCS Q1 Results Today: Date, Time, Dividend News, Other Key Updates To Watch Out For
Last Updated: TCS Q1 Results FY26: TCS is set to declare its audited financial results for the quarter ended June 30, and interim dividend on Thursday, July 10 TCS Q1 Results FY26: IT bellwether Tata Consultancy Services Ltd (TCS) is set to declare its audited standalone and consolidated financial results for the quarter ended June 30, and interim dividend for FY26 today. 'Tata Consultancy Services Limited will announce its results for the first quarter of FY 2026, ended June 30, 2025, on Thursday, July 10, 2025, after-market trading hours," it said in a regulatory filing. After the release of the Q1 numbers, the leadership team will address a press conference at 5:30 pm on the same date. IT analysts tracking Tata Consultancy Services (TCS) expect a muted performance in the June 2025 quarter (Q1FY26), largely due to a ramp-down in the BSNL project, modest growth in developed markets, and weakness in key verticals like retail and manufacturing. The Street will closely watch for management commentary around client budgets, margin levers, and the overall demand outlook. TCS Q1 Earnings FY26: What To Expect? For the quarter, most brokerages are projecting low single-digit growth, or even a slight decline in revenue and profit. Antique Stock Broking expects a 0.6% decline in revenue in constant currency (CC) terms, although it estimates a 1% QoQ growth in dollar terms, supported by a 160 basis point cross-currency tailwind. The brokerage also expects EBIT margins to remain flat at 24.2% and forecasts deal wins between $9–10 billion. Nuvama is slightly more conservative, projecting revenue of Rs 64,600 crore (up 3.2% YoY) and net profit of Rs 12,214 crore (up 1.5%). Kotak Institutional Equities expects a 0.4% sequential decline in CC revenue, with developed market growth at a modest 0.3%, entirely offset by a drop in BSNL-related revenue. Kotak also pointed out additional factors to monitor, including tariff-related demand disruption in verticals like retail and manufacturing, weak growth trends in developed markets, and any client insourcing trends. Other key areas of investor focus include the role of Global Capability Centres (GCCs), the pace of enterprise GenAI adoption and its deflationary effects, and the company's strategy to protect or grow margins. TCS' deal pipeline continues to show strength, with analysts projecting total contract value (TCV) of $8–10 billion in Q1. Key wins include AI and digital transformation deals with Schneider Electric, Marathon de Paris, ICICI Securities, Oman's Dhofar Insurance, Virgin Atlantic, and an extension of the BSNL contract. Dividend Declaration Expected Today Meanwhile, TCS is expected to announce an interim dividend today, with the record date set as July 16, 2025. Eligible shareholders on that date will receive the dividend if it is declared. TCS has maintained a consistent and generous dividend track record, distributing Rs 314 per share over the last three fiscal years. Despite a relatively modest 5% rise in the stock over this period, the additional 9% from dividends takes total investor returns to 14%. In FY2022–23, the company paid Rs 115 per share, including a Rs 67 special dividend and a Rs 24 final dividend. In FY2023–24, it paid Rs 73 per share across interim and final payouts. Most recently, in FY2024–25, TCS distributed Rs 126 per share, including a Rs 66 special dividend and a Rs 30 final payout. The company continues to be a reliable cash generator for the Tata Group and a top dividend payer on Dalal Street. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Economic Times
6 days ago
- Business
- Economic Times
TCS Q1 Results Preview: IT major may clock modest 3% profit growth; Trump tariffs impact in focus
Indian IT bellwether Tata Consultancy Services (TCS) will announce its Q1FY26 earnings on Thursday, July 10. The company is expected to report a year-on-year (YoY) net profit growth of 1% to 3%, according to estimates from four brokerages. The bottom line is projected to be in the range of Rs 12,040 crore to Rs 12,416 crore. ADVERTISEMENT Revenue for the April–June quarter of FY26 is expected to grow between 2.7% and 3.8%, i.e., in the range of Rs 62,613 crore to Rs 64,993 crore. The estimates have been provided by Kotak Institutional Equities, Nuvama Institutional Equities, InCred Equities, and Axis Securities. Nuvama has given the most conservative estimate for profit after tax (PAT), while InCred remains the most bullish among its peers. In terms of revenue, InCred has projected the highest topline, whereas Axis has given the the largest domestic IT company by market capitalisation (Rs 12.32 lakh crore), revenues from developed markets are expected to face pressure, alongside a ramp-down in BSNL-related are likely to decline on a year-on-year basis but improve sequentially. ADVERTISEMENT Among the key monitorables to track are tariff uncertainty, underperformance in developed markets, the outlook on wage hikes, and new deal wins including the BSNL account. Kotak 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). ADVERTISEMENT Operating performance is also expected to remain healthy, with EBITDA estimated at Rs 17,257 crore, up 3.6% YoY and 1.6% QoQ. The EBITDA margin for the quarter is projected at 26.6%, down 6 basis points YoY but improving by 21 basis points sequentially, indicating stable operational efficiency."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. ADVERTISEMENT The brokerage expects EBIT margins to decline on a YoY basis, despite the deferral of wage hikes usually implemented in April. The margin pressure stems from a lack of operating leverage. Even with currency tailwinds, EBIT margins are likely to remain flat wins are expected to remain steady at US$8–9 billion, flat on a YoY basis. ADVERTISEMENT - Reasons behind growth struggles in international markets despite robust deal wins—client ramp-downs likely being a factor.- The impact of tariff uncertainty on demand across verticals, particularly manufacturing and retail.- Updates on the financial services and healthcare verticals.- Any share loss to insourcing by large clients. 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 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.'We will watch out for the outlook on the US macro environment amid tariff uncertainty and commentary on margin recovery,' the brokerage said. 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. EBIT is expected to be Rs 15,850 crore, representing a 2.6% YoY and 1.6% QoQ growth. EBIT margin is forecast at 24.4%, down 26 basis points YoY, but up 20 basis points highlighted that revenue in constant currency terms may decline due to the BSNL impact, while developed markets are expected to show modest sequential growth.'Revenue softness and business reinvestments, including strengthening of the partnership ecosystem, as well as INR appreciation on a QoQ basis, are key margin headwinds,' the note monitorables include deal pipeline conversion, outlook across the financial services, retail and manufacturing verticals, and updates on large deal ramp-ups. Axis Securities projects Q1FY26 PAT at Rs 12,107 crore, registering a modest 0.7% YoY increase. Revenue is estimated at Rs 62,613 crore, implying a 2.7% YoY rise. EBIT is forecast at Rs 15,444 crore, up 3.3% YoY. EBIT margin is expected to improve by 13 basis points YoY to 24.7%.'We expect topline growth to remain flattish QoQ due to the decline in revenues from the BSNL deal,' the brokerage are likely to see a sequential improvement of 60 basis points, aided by the absence of wage hikes and cross-currency tailwinds. Key elements to watch include the deal pipeline, vertical-level commentary, wage hike outlook, and updates on new BSNL-related deal wins. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
6 days ago
- Business
- Time of India
TCS Q1 Results Preview: IT major may clock modest 3% profit growth; Trump tariffs impact in focus
Indian IT bellwether Tata Consultancy Services (TCS) will announce its Q1FY26 earnings on Thursday, July 10. The company is expected to report a year-on-year (YoY) net profit growth of 1% to 3%, according to estimates from four brokerages. The bottom line is projected to be in the range of Rs 12,040 crore to Rs 12,416 crore. Revenue for the April–June quarter of FY26 is expected to grow between 2.7% and 3.8%, i.e., in the range of Rs 62,613 crore to Rs 64,993 crore. The estimates have been provided by Kotak Institutional Equities, Nuvama Institutional Equities, InCred Equities, and Axis Securities. Nuvama has given the most conservative estimate for profit after tax (PAT), while InCred remains the most bullish among its peers. In terms of revenue, InCred has projected the highest topline, whereas Axis has given the lowest. For the largest domestic IT company by market capitalisation (Rs 12.32 lakh crore), revenues from developed markets are expected to face pressure, alongside a ramp-down in BSNL-related revenues. Live Events Margins are likely to decline on a year-on-year basis but improve sequentially. Among the key monitorables to track are tariff uncertainty, underperformance in developed markets, the outlook on wage hikes, and new deal wins including the BSNL account. Here's what the brokerages recommended: Kotak Institutional Equities Kotak 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). Operating performance is also expected to remain healthy, with EBITDA estimated at Rs 17,257 crore, up 3.6% YoY and 1.6% QoQ. The EBITDA margin for the quarter is projected at 26.6%, down 6 basis points YoY but improving by 21 basis points sequentially, indicating stable operational efficiency. "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. The brokerage expects EBIT margins to decline on a YoY basis, despite the deferral of wage hikes usually implemented in April. The margin pressure stems from a lack of operating leverage. Even with currency tailwinds, EBIT margins are likely to remain flat sequentially. Deal wins are expected to remain steady at US$8–9 billion, flat on a YoY basis. Key things to watch, according to Kotak Equities: - Reasons behind growth struggles in international markets despite robust deal wins—client ramp-downs likely being a factor. - The impact of tariff uncertainty on demand across verticals, particularly manufacturing and retail. - Updates on the financial services and healthcare verticals. - Any share loss to insourcing by large clients. Nuvama Institutional Equities 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. 'We will watch out for the outlook on the US macro environment amid tariff uncertainty and commentary on margin recovery,' the brokerage said. InCred Equities 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. EBIT is expected to be Rs 15,850 crore, representing a 2.6% YoY and 1.6% QoQ growth. EBIT margin is forecast at 24.4%, down 26 basis points YoY, but up 20 basis points sequentially. InCred highlighted that revenue in constant currency terms may decline due to the BSNL impact, while developed markets are expected to show modest sequential growth. 'Revenue softness and business reinvestments, including strengthening of the partnership ecosystem, as well as INR appreciation on a QoQ basis, are key margin headwinds,' the note said. Key monitorables include deal pipeline conversion, outlook across the financial services, retail and manufacturing verticals, and updates on large deal ramp-ups. Axis Securities Axis Securities projects Q1FY26 PAT at Rs 12,107 crore, registering a modest 0.7% YoY increase. Revenue is estimated at Rs 62,613 crore, implying a 2.7% YoY rise. EBIT is forecast at Rs 15,444 crore, up 3.3% YoY. EBIT margin is expected to improve by 13 basis points YoY to 24.7%. 'We expect topline growth to remain flattish QoQ due to the decline in revenues from the BSNL deal,' the brokerage said. Margins are likely to see a sequential improvement of 60 basis points, aided by the absence of wage hikes and cross-currency tailwinds. Key elements to watch include the deal pipeline, vertical-level commentary, wage hike outlook, and updates on new BSNL-related deal wins. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
