TCS to announce Q2 FY27 results on October 8 with modest growth expected
Tata Consultancy Services (TCS) is scheduled to announce its Q2 FY27 financial results on Thursday, October 8, after market hours. The company, India's largest IT services provider, is anticipated to report modest sequential growth amid ongoing economic challenges.
Analysts expect the quarterly performance to be better than Q1, supported by an uptick in July and August, though September may have been impacted by global interest rate hikes and weakness in the Middle East, particularly affecting manufacturing and retail sectors.
JM Financial projects constant-currency revenue growth of 0.5% quarter-on-quarter, with dollar-denominated revenue rising 0.3% QoQ to $7.65 billion and rupee revenue increasing 1.2% QoQ to ₹73,110.2 crore, representing 11.1% year-on-year growth. Systematix Institutional Equities offers a slightly higher estimate, forecasting 0.6% QoQ constant-currency growth, with dollar revenue at $7.67 billion (up 2.7% YoY) and rupee revenue at ₹73,296.9 crore (up 1.4% QoQ and 11.4% YoY).
On profitability, JM Financial expects EBIT to reach ₹17,609 crore, up 1.7% QoQ and 6.3% YoY, with EBIT margin improving by 10 basis points sequentially to 24.1%. Systematix projects EBIT at ₹17,694.9 crore, up 2.2% QoQ and 6.8% YoY, and an 18 basis point QoQ margin expansion to 24.1%. Both brokerages note that margins are likely to remain lower compared to the same period last year.
Net profit estimates vary, with JM Financial forecasting ₹13,702.5 crore (down 1.1% QoQ but up 13.5% YoY) and Systematix estimating ₹13,688.8 crore (down 1.2% QoQ but up 6.1% YoY).
Deal wins are expected to range between $8–10 billion according to JM Financial, while Systematix anticipates a total contract value of $9–10 billion, excluding the €1.25 billion Porsche contract. Both firms anticipate margin improvement as the impact of wage revisions eases, though higher business investments could offset some gains.
TCS declared an interim dividend of ₹12 per equity share in Q1 FY27 and returned ₹39,571 crore to shareholders via dividends in FY26. The board is expected to consider another interim dividend following the Q2 results.
Since the release of Q1 results, TCS shares have declined 11%, extending year-to-date losses to 35% and positioning the stock for its steepest annual drop since 2008. Investors will closely watch the upcoming results for insights on deal momentum, revenue trends, margin trajectory, and management’s outlook for the remainder of FY27.
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