TCS Q2 Results Preview: Will Tata's Giant See Double-Digit Growth In PAT? 2nd Interim Dividend Ahead

Tata Consultancy Services (TCS) is going to be in focus on Thursday, October 9, as the Tata Group's flagship will declare its Q2 results for FY26. TCS is expected to report flattish revenue growth in Q2FY26, while PAT is likely to be softer. EBIT margins is seen to be under pressure, however, the impact of wage revision is likely to be offset by weak rupee. Another key factor to watch out on earnings day is the announcement of second interim dividend for the current fiscal.

TCS Q2 Results Preview:

In their preview note, analysts at Kotak Institutional Equities said, "We forecast moderate revenue growth of 0.2% qoq. The ramp-downs in a few accounts and share losses could lead to moderate growth. We expect stable EBIT margins; the impact of the wage revision, effective September 1, will be offset by rupee depreciation. P&L charges from employee separation are not baked into our estimates."

"We expect TCV of US$10 bn+ for the quarter. The company has announced a mega-deal in the quarter. The focus will be on the rationale for the planned 12k employee separation, the impact on employee morale and costs associated with the separation," analysts added.

Key factors to focus on October 9th are:

- The reasons for the underperformance in growth in developed markets and any potential share losses;

- Whether the impact on demand resulting from the imposition of tariffs by the US subsided;

- The pace of GenAI adoption and deflationary impact on spends;

- The impact of GCC ramp-up on the growth of companies and GCC as a growth lever;

- H-1B dependence and plans for further de-risking; and

- margin aspirations in light of elevated competitive intensity.

In Q1FY26, TCS logged consolidated net profit of Rs 12,760 crore, which was up by 5.98% YoY and 4.38% QoQ. However, the top-line front dipped steeper than expected. TCS revenue stood at Rs 63,437 crore, registering a decline of 1.6% QoQ but up 1.3% YoY. In constant currency, the revenue declined 3.1% YoY.

TCS Interim Dividend:

Apart from Q2 earnings, TCS board of directors are likely to consider the second interim dividend for FY26.

Earlier, TCS delivered first interim dividend of Rs 11 per share, for which the record date was July 16 and the payout date was August 4, 2025.

This Tata tech giant holds a strong record of dividend payout. Since October 2004, the company has delivered 90 dividends, as per Trendlyne data.

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