TCS set to post single-digit Q1 profit growth as wage hikes pressure margins; deal wins seen at $8–9 billion
AI Market Summary
TCS reports FY25 Q1 results after market today, with consensus for low single-digit profit growth and low-teens revenue growth but a sequential EBIT margin drop (~140–160bp) from April wage hikes. Constant-currency revenue is expected flat QoQ amid macro caution and AI-driven cost-takeout, while deal wins are seen at $8–9bn, down YoY. Commentary on BFSI demand and FY27 outlook could move Indian IT and broader India equity sentiment.
Impact level
● Medium
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NCSINIFTY52USD/USDT+0.67%
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● Neutral
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Tata Consultancy Services is set to report its FY2025 Q1 results after market close on July 9, with net profit expected to rise 5.3%–5.9% year on year and revenue seen up 12.6%–13.9%. EBIT margin is forecast to slip 140–160 basis points sequentially to 23.8%–23.9%, mainly due to company-wide wage increases effective April. Constant-currency revenue is expected to be flat quarter on quarter, reflecting macro headwinds and client expectations for AI-led cost reductions, while new order wins are seen at $8–9 billion, below last year. The board will also consider an FY27 interim dividend.
