TCS braces for muted June quarter; AI outlook and deal pipeline in focus

Brokerages forecast flattish revenue for TCS in the June quarter due to macro headwinds, productivity pass-through in renewed deals, and rising AI-led cost reduction expectations from clients. Revenue in rupee terms is expected to grow 2.1% to around Rs 72,202 crore, while net profit may drop 1.9% to about Rs 13,454 crore. Operating margin is seen declining 140-160 basis points sequentially to around 23.7-23.9% on salary revisions. The company is expected to report $8-10 billion in new contracts and investors will closely track AI revenue traction and deal scalability.