As the fourth quarter earnings season kicks off, Tata Consultancy Services (TCS) is poised to release its financial results for the period ending March 31, 2025. This announcement comes alongside earnings reports from Anand Rathi and Evoq Remedies, attracting significant attention from investors and analysts alike.

Earnings Growth Projections for Nifty50

Analysts from Anand Rathi Research highlight that the Nifty50 index must achieve a growth rate of 14% in Q4 to support an overall 10% earnings growth for FY25. Despite a slower earnings performance in the first half of FY25, the results from Q3 surpassed expectations, showcasing an aggregate profit after tax (PAT) growth of 11.5%, largely driven by sectors like financials and healthcare.

• Year-to-date growth stands at 8.2%.
• Achieving the targeted 10% earnings growth for FY25 necessitates about 14% growth in the upcoming months.
• Future earnings for Nifty50 are expected to maintain a robust trajectory due to increased government capital expenditure and a rebound in agricultural output.

What to Expect from TCS Q4 Results

The outlook for TCS’s Q4 results suggests a continuation of the industry’s subdued performance, characterized by flat revenue growth and stable deal acquisitions. According to estimates from Kotak Institutional Equities, TCS is expected to report revenues of approximately ₹64,964 crore for the quarter, reflecting a modest 1.5% increase from ₹63,973 crore in the previous quarter.

• In dollar terms, revenue may see a slight decline of 0.5%, dropping from $7,539 million to an anticipated $7,502 million.
• On a constant currency basis, a 0.3% quarter-over-quarter decline is forecasted.
• A significant drop in revenues from BSNL is expected, amounting to a $30 million decrease.

Net Profit and Market Concerns

TCS’s net profit for Q4 FY25 is projected to reach ₹12,663.6 crore, which marks a 2.3% increase from ₹12,380 crore in the previous quarter. Analysts are particularly interested in how recent economic challenges, particularly in the U.S., might impact TCS’s performance and outlook for FY2026.

Key points of focus include:

• The impact of tariff changes and macroeconomic trends.
• Potential project cancellations or delays that could affect growth in developed markets.

Stock Performance Overview

TCS shares have faced a downturn, dropping 8% over the past month and more than 19% in the last three months. In the past six months, the stock has seen a decline of 22%, and it has dropped over 16% year-over-year.

As investors brace for the results, the market’s reaction will be crucial in shaping the future trajectory of TCS. With earnings season underway, TCS’s performance will be closely monitored, providing insights into the broader IT sector’s health and its implications for investors.

For further updates on TCS’s financial outlook and analysis, stay tuned.