TCS Share Price Down Ahead Of Q3 Results
TCS is likely to clock a net profit of Rs 12,540 crore, a 5.3% sequential rise. The stock has fallen 7.7% in the last 30 days.
Tata Consultancy Services Ltd.'s share price fell 0.2% on market open on Thursday, ahead of its third quarter financial results. The scrip was trading at Rs 4,109 apiece as of 9:24 a.m. and the relative strength index was 42.
In a seasonally weak third quarter, the company is expected to see improvement in its margins, due to absence of a wage hike. While profit is expected to rise sequentially, revenue may remain flattish, with furloughs weighing in and contribution from BSNL deal reducing, as per Jefferies.
The information technology giant is likely to clock a net profit of Rs 12,540 crore, a 5.3% sequential rise, and revenue of Rs 64,754 crore, a 0.8% growth, for the quarter ending in December, according to a survey of analysts' estimates done by Bloomberg.
TCS Earnings Estimates (Quarter-on-Quarter)
Revenue may rise 0.8% to Rs 64,754 crore vs Rs 64,259 crore.
Ebit may rise 3.3% to Rs 15,986 crore versus Rs 15,469 crore.
Ebit margin expected at 24.7% vs 24.1%.
Net profit may rise 5.3% to Rs 12,540 crore vs 11,909 crore.
TCS’ updates on hiring plans, including freshers and laterals for fiscal 2026, are to be watched out for, as revival in hiring gives an insight into the demand and project pipeline of the company.
The Tata Group company typically releases its quarterly result after market close. The release is followed by a press conference by the company's top management.
The markets have built up positions in the technology sector, with foreign investors net investing $1.70 billion in November and December. This has also led to a surge in open interest in the technology companies since November-end. TCS had a futures open interest of Rs 4,533 crore ahead of its earnings.
The stock closed nearly 2% higher on Wednesday, while its fallen 7.7% in the last 30 days.
Thirty out of the 49 analysts tracking TCS have a 'buy' rating on the stock, 13 recommend a 'hold' and six suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price target of Rs 4,527 implies a potential upside of 10.4%.
