Tata Consultancy Services’ (TCS) EBIT margins are expected to be flat in the March-ending quarter supported by currency tailwind off-setting wage headwinds and peak utilization levels, as per brokerages.
“We expect EBIT margin to remain stable QoQ, with some currency support as wage headwinds are absorbed and one-offs are behind,” said Motilal Oswal Financial Services.
Nuvama Research also expects foreign exchange rate tailwinds, reinvestments and higher variable pay provisioning to also impact margins. Other brokerages like Choice Institutitional Equities expects TCS to maintain strong focus on productivity levers and restructuring of employees to strategically utilise them.
TCS will be announcing its March quarter and annual results later in the day. Follow our live here
Revenue growth
Meanwhile, analysts expect revenue to grow in the range of 0.7-1.5 per cent sequential growth. While Nuvama expects growth to be broad-based across developed markets and RoW, while Motilal projects revenue to be led by international business and inorganic contribution from Coastal Cloud, a two-month impact in the quarter.
In terms of AI-readiness, Choice said, “We expect TCS to deliver revenue growth of 0.7 per cent QoQ, led by strengthening its AI-led enterprise transformation capabilities through its partnership with OpenAI, enabling industry-specific agentic AI solutions and joint go-to-market execution. TCS is accelerating its shift to an AI led services model, with its AI portfolio reaching a $1.8 billion annualised run-rate, growing 17.3 per cent QoQ in CC.”
TCV growth
TCS is expected to report a TCV of $8-10 billion, as per HDFC Securities. Deal pipeline is thus respected to remain with Motilal advising focus on comments regarding demand, tech budgets, AI data centers, BFSI and deal wins. The brokerage also estimates recent acquisitions like ListEngage, Coastal Cloud, to support near-term growth.
Choice suggested a watch on management observations on near-term demand trends, discretionary spending by clients, verticalwise performance outlook, key deal wins and progress on data center business. However, sentiment on TCS appear to be mixed for near-term performance, with the stock at a consensus underweight among investors, as per JM Financial.
“We shall watch out for the outlook on US macro and update on employee restructuring,” said Nuvama.
Published on April 9, 2026
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