TCS Q3 Results Preview: Tata Consultancy Services (TCS), India’s largest IT services company, is expected to report steady year-on-year growth in the December 2025 quarter, though analysts anticipate some
pressure on margins due to wage hikes, higher investments and seasonally lower working days. Brokerage estimates point to modest revenue expansion, stable demand in key verticals and close scrutiny of deal wins, BSNL ramp-up and artificial intelligence-led opportunities.
TCS will report its quarterly results for Q3FY26 on Monday, January 12, 2026, thus kickstarting India Inc’s Q3 earning season.
Domestic brokerage Motilal Oswal Financial Services (MOFSL) expects TCS to post a 5.1% year-on-year rise in net profit at Rs 13,080 crore, supported by a 4.1% YoY increase in sales to Rs 66,570 crore. On a sequential basis, MOFSL sees revenue growth of 0.5% quarter-on-quarter in constant currency terms, with international business also growing 0.5%, aided by the BSNL ramp-up. Inorganic contribution from the recent ListEngage acquisition is expected to be around 0.1%. MOFSL has a target price of Rs 4,400 on the stock.
Axis Securities is relatively more optimistic on sequential growth, forecasting 2.6% QoQ revenue expansion, driven by traction in BFSI and hi-tech verticals, along with cross-currency tailwinds. However, it expects EBIT margins to decline by 28 basis points during the quarter due to wage hikes, higher investments and fewer working days. Axis Securities estimates Q3 net profit at Rs 13,163 crore, up 5.8% YoY, with revenue rising 5.6% YoY to Rs 67,526 crore. The brokerage said investor focus will be on the deal pipeline, vertical-wise commentary and outlook on the BSNL advance purchase order.
According to Nirmal Bang Institutional Equities, TCS’s profit after tax may increase 4.1% YoY to Rs 13,016 crore, while revenue is seen rising 5.1% YoY to Rs 67,648 crore. It expects EBIT margin at 24.5%, compared with 25.2% in the September quarter and 24.8% in the year-ago period. Nirmal Bang has a target price of Rs 3,861 on the stock. The brokerage also said it will closely track management commentary on remaining lay-offs and their impact, along with more clarity on the data centre business during the earnings call.
On deal activity, Kotak Institutional Equities expects TCS to report deal wins in the range of $10–11 billion for the quarter. It noted that, as per unconfirmed media reports, the company may have secured a mega deal in the telecom vertical. Separately, Nirmal Bang expects the total contract value (TCV) to come in above the guided range of $7-9 billion, despite some delays in client decision-making.
Kotak Institutional Equities said investor attention will be on TCS’s renewed aggression and investments aimed at accelerating growth. Key monitorables include measures to boost revenue growth and wallet share in developed markets, the deal pipeline, client technology budgets for CY2026, and the contribution of GenAI in terms of enterprise adoption and potential deflationary impact on IT spends. It also flagged focus areas such as the impact of global capability centre (GCC) ramp-ups, progress on planned data centre investments, priorities for inorganic growth, and margin aspirations amid heightened competitive intensity.
MOFSL added that near-term demand outlook, client tech budgets, AI data centres and deal wins will be crucial factors to watch. The brokerage said recent acquisitions such as ListEngage and Coastal Cloud provide near-term growth support, with commentary on synergy realisation expected to be closely monitored.
Overall, while TCS is likely to deliver stable growth in Q3, analysts believe the management’s commentary on demand trends, deal momentum, BSNL execution and AI-led opportunities will be key drivers for stock performance going ahead.
