The topline is likely to be supported by an inorganic contribution of around 30 to 40 basis points from the Coastal Cloud and ListEngage acquisitions.
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In constant-currency terms, revenue growth is expected to be around 1% sequentially, with estimates ranging from 0.6% at JPMorgan to 1.4% at Goldman Sachs.
EBIT (Earnings before interest and tax) are expected to come in at ₹17,603 crore, compared to ₹16,889 crore in the previous quarter. Earnings before interest and tax margin is estimated at 25.4%, slightly higher than 25.2% in the last quarter.Margins are likely to be supported by currency benefits of 60 to 70 basis points and improved operating leverage. However, headwinds may include higher variable pay, senior level promotions, and continued investment spending.
The rupee has depreciated by around 2.5% to 3% on average during the quarter, which is expected to aid margins.
Profit after tax is estimated at ₹13,727 crore, compared to ₹10,657 crore in the previous quarter. The previous quarter included exceptional items of ₹3,391 crore, which had impacted reported profit after tax.
Over the last six months, TCS has signalled a more aggressive strategy, including announcing a 1 gigawatt data centre plan and holding its first analyst meet in a decade.
Key monitorables for the results include the ramp up timeline of the second phase of the Bharat Sanchar Nigam Limited contract, where brokerages do not expect a meaningful contribution in the March quarter.
Investors will also watch for management commentary on demand trends amid disruptions from the ongoing Middle East conflict, guidance on international business growth for financial year 2027, and updates on artificial intelligence revenues and the Hypervault platform.
| Cos | Valuation (FY28E ONLY) |
|---|---|
| TCS | 15.5x |
| Infosys | 16.5x |
| HCL Tech | 17x – 17.5x |
In the last one year, TCS has declined 22%, while Infosys and HCL Technologies are down 5%. The Tata group stock is now cheaper than Infosys and HCLTech.
