TCS shares continue rebound from 52-week low ahead of Q2 results; Here’s what to expect

Shares of Tata Consultancy Services (TCS) Ltd. are trading with gains of over 2% on Wednesday, October 8, a day prior reporting its results for the July-September period.The stock has gained in two out of the three trading sessions so far this week, and are up 4% during this period. Shares of the largest listed Tata Group entity are rebounding from their 52-week low of ₹2,866, which they fell to on October 1 this year.

According to a CNBC-TV18 poll, TCS is likely report a 0.4% growth in its US Dollar Revenue when compared to the June quarter.

In rupee terms, the growth is likely to be 2.6% when compared to the June quarter.

Metric	Figure	Growth (QoQ)
Revenue ($M)	7,447.4	0.4%
Revenue (₹ Cr)	65,114	2.6%
EBIT (₹ Cr)	16,103	3.8%
EBIT Margin (%)	24.7	20 basis points
Net Profit (₹ Cr)	12,528.3	-1.4%

TCS is likely to report revenue growth of 0.2% sequentially in constant currency terms. Brokerages have a wide range of estimates, while Morgan Stanley expects a negative 0.2% growth, Nomura is projecting that number to be a negative 0.5%. TCS has reported negative constant currency revenue growth for two quarters in a row. During the June quarter, constant currency revenue growth for TCS was a negative 3.3%.EBIT margins are likely to remain stable despite the impact of wage revision from September 1, which will be offset by the weakness in the rupee. Deal wins are likely to remain stable, as the company had announced a mega $550 million deal with Scandinavian non-life insurer Tryg.

Investors this quarter will focus on:

• 12,000 employees laid-off, the impact on morale, costs associated with it.
• H 1-B dependence and the plans for further de-risking
• Implications from the JLR cyberattack incident
• Pace of GenAI adoption and deflationary impact on spends
• Updates on second phase of the BSNL deal

Shares of TCS are trading 1.9% higher at ₹3,031. The stock has recovered its losses over the last one month.