TCS Q1 Preview: Can the IT bellwether earnings give hope to investors holding the battered stock?

TCS is expected to report around 13 percent year-on-year revenue growth and 4 percent year-on-year profit growth in Q1FY27, but sequential revenue growth is likely to be almost flat, signalling weak demand recovery for large-cap IT firms. EBIT margins are seen falling 100 to 160 basis points quarter-on-quarter due to wage revisions effective April, though a weaker rupee and productivity gains may partially offset the hit. Deal total contract value is estimated at 8 to 10 billion dollars, down year-on-year on pricing compression, while investor focus will be on management commentary around US demand, BFSI growth, AI deflation risks and the Middle East conflict.