TCS Q4FY26 revenue may see a healthy year-on-year (YoY) rise thanks to the weakness in the Indian rupee.(REUTERS)AI Quick ReadTCS Q4 results preview: Tata Consultancy Services (TCS), the IT bellwether of the country, will announce the results of the January-March quarter (Q4FY26) and for the financial year 2025-26 on Thursday, April 9.
The IT heavyweight's revenue may see a healthy year-on-year (YoY) rise thanks to the weakness in the Indian rupee during the quarter. Profit after tax (PAT), too, may see a healthy rise on a yearly basis.
In terms of financial numbers, brokerage firm Motilal Oswal Financial Services expects TCS to report an 8% YoY rise in overall revenue and a 12.1% YoY growth in reported PAT for the quarter.
The brokerage firm expects EBIT margin to rise to 25.1% from 24.2% YoY, with some currency support as wage headwinds are absorbed and one-offs are behind.
Dhanshree Jadhav, Analyst - Technology at Choice Institutional Equities, expects TCS to report 0.7% quarter-on-quarter (QoQ) revenue growth in US dollars (3% in INR), driven by continued traction in its AI-led enterprise transformation initiatives.
Jadhav underscored that TCS has further strengthened its AI positioning through its partnership with OpenAI, aimed at enabling industry-specific agentic AI solutions and joint go-to-market execution. The company’s AI portfolio has reached an annualised run-rate of $1.8bn, growing 17.3% QoQ in constant currency.
Jadhav said margins may remain broadly stable at 25.3%, with the company continuing to focus on productivity levers and workforce restructuring initiatives to support operational efficiency.
While the overall numbers may show a healthy uptick, the focus will likely be on management commentary over demand scenarios in key verticals like BFSI and retail, budgets for tech spending, AI data centres, hiring trends, and deal wins.
"While the revenue is likely to look stronger in rupee terms on account of currency depreciation, what will really matter is whether growth in dollar terms picks up meaningfully from recent quarters. That acceleration could act as an important catalyst for the sector," said Ravi Singh, Chief Research Officer (Research) at Master Capital Services.
As always, a key focus will be deal wins, especially the large ones, as they will provide visibility into growth. The impact of wage hikes on margins and pricing pressure will also be on investors' radar.
Investors will also seek cues on how the company plans to harness the momentum of artificial intelligence (AI) amid growing concerns that AI will significantly disrupt the IT sector.
"The market’s attention is also around the evolving AI play and how the Indian IT sector will monetise the technology and build a credible narrative around it. This lack of AI transformation in Indian IT remains a key overhang that leads to a major correction in the whole sector and will require clarity before the momentum in the sector can fully return," Singh noted.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Nishant is a market reporter at Mint, where he holds the official designation of Principal Correspondent – Markets. He has been closely tracking the Indian stock market as well as major global stock markets along with the broader macroeconomic trends for a decade.
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He is obsessed with breaking down complex financial and economic concepts into clear and engaging stories. He focuses not only on what is happening in the markets, but also why it matters.
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Before joining Mint, Nishant worked with some of India’s most respected business newsrooms, including The Economic Times and Moneycontrol, where he reported extensively on the stock market, corporate earnings, macroeconomic trends, GDP, inflation, monetary policies of the RBI and the US Federal Reserve, bonds, and currencies.
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