Tata Consultancy Services (TCS) shares gained more than 2% on Wednesday, October 8, ahead of the company’s July–September (Q2FY26) results announcement. The stock’s upward momentum comes as it rebounds from a 52-week low of ₹2,866, recorded on October 1.

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Modest Growth Expected in Q2 Performance Analysts Expect Margin Stability and Deal Wins

Over the past week, TCS stock has risen nearly 4%, gaining in two out of three trading sessions. As investor sentiment improves, market participants are keenly watching the company’s upcoming earnings, which are expected to reflect modest growth after a weak June quarter.

Shares of TCS are currently trading at ₹3,030, recovering losses made earlier in the month.

Modest Growth Expected in Q2 Performance

According to a CNBC-TV18 poll, TCS is likely to report a 2% year-on-year growth in US Dollar revenue, while rupee revenue is expected to rise 2.5% sequentially compared to the June quarter.

Metric	Estimate	Growth
Revenue ($M)	7,657	2% YoY
Revenue (₹ Cr)	64,160	2.5% QoQ
EBIT (₹ Cr)	15,950	Flat
EBIT Margin (%)	25	+19 bps
Net Profit (₹ Cr)	12,422	+3.1%

The company is projected to deliver a 1.2% sequential growth in constant currency terms, with estimates ranging from 0.2% to 1.7%, as per various brokerage expectations.

TCS is expected to post stable margins and improved profitability, supported by large deal wins and gradual recovery in demand.

Analysts Expect Margin Stability and Deal Wins

While some brokerages predict a slight improvement in EBIT margins, others see pressure due to the ramp-up costs related to the BSNL project and continued weakness in key global markets.

Nuvama expects margins to drop by 50 basis points sequentially, whereas Kotak Institutional Equities projects a $55 million incremental boost from the BSNL deal, which could support near-term growth.

Brokerages also expect TCS to maintain a 25% EBIT margin, signaling operational stability despite global uncertainties.

Also Read: Titan Stock Jumps After Impressive Q2 Business Update

Key Factors to Watch in Q2FY26 Results

Investors are likely to focus on a few key themes in the upcoming results:

Deal Wins: New large-scale contracts and renewal of existing projects.
European Market Outlook: Performance in Europe remains challenging, despite multiple mega deals.
BFS Segment Recovery: Continued improvement in the banking and financial services segment.
Discretionary Spending: Trends in IT budgets across major clients in developed markets.

Analysts believe sustained deal momentum and cost optimization efforts will be crucial to TCS’s near-term performance.

Stock Performance and Market Sentiment

TCS, the largest listed Tata Group company, has been under pressure for the past few months due to global IT spending slowdowns. However, the recent rebound from its 52-week low indicates renewed buying interest from investors ahead of its quarterly results.

The company’s consistent dividend record, strong order book, and steady client base continue to make it a preferred pick among large-cap IT stocks.

TCS shares gaining momentum ahead of Q2 results shows improving market confidence in the Tata Group tech major.

Outlook Ahead

As TCS prepares to announce its Q2FY26 earnings, market watchers will closely track revenue growth, margin stability, and commentary on future demand. Even a small recovery in discretionary spending or stronger deal inflows could strengthen the outlook for the IT major.

With the stock regaining ground from recent lows, investors remain cautiously optimistic about TCS’s near-term recovery and long-term growth prospects.

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