Indian benchmark indices opened higher on Thursday, supported by renewed buying interest from foreign institutional investors (FIIs) and positive global cues. As of 9:15 a.m. IST, the Nifty 50 was up 0.11% at 25,074.3, while the Sensex advanced 0.15% to 81,900. Among sectors, the IT index remained in the spotlight, extending its recent strength after gaining over 1.5% on Wednesday.
Investor focus has increasingly shifted toward the IT space ahead of the upcoming earnings season. On October 9, India’s largest IT services exporter, TCS, will kick off the July–September (Q2) quarter results, with the board also expected to declare a second interim dividend for the financial year 2025–26. Reflecting renewed optimism, TCS shares have surged more than 4.5% this week, rebounding from a multi-year low ahead of its Q2FY26 earnings announcement.
Tata Consultancy Services (TCS) has canceled its post-earnings press conference for the quarter ended September 30 (Q2), which was originally scheduled for October 9, as the date coincides with Ratan Tata’s death anniversary, according to reports. However, the analyst call will still take place on the same day, as per exchange filings.
The stricter H-1B regulations may prompt firms to rely more on subcontractors or boost local recruitment. While TCS has notably lowered its H-1B dependency—from 9,166 in 2015 to 5,505 in 2025—investors are keen to see how the company plans to further reduce operational risks.
US lawmakers, including leaders of the Judiciary Committee, recently addressed a letter to Tata Consultancy Services (TCS), seeking clarification on the company’s approach to H-1B visa recruitment amid ongoing layoffs, including those affecting employees in the United States.
TCS’s announcement to reduce its workforce by 2%, affecting roughly 12,000 employees. Key points that market participants are awaiting include updates on the company’s total headcount, attrition trends, and the financial impact of the planned layoffs.
TCS’s total contract value (TCV) for the quarter is expected to surpass $10 billion, supported by a major deal secured during the period. In the first quarter, the company had reported a TCV of $9.4 billion.
TCS’s Q2FY26 earnings are likely to set the direction for the wider IT sector, which continues to grapple with headwinds. Apart from the benefit of currency depreciation, tailwinds remain limited, and revenue growth could stay muted due to a soft demand outlook and slower deal conversions.
In Q1 FY26, TCS reported revenue of ₹63,437 crore, up 1.3% YoY but down from ₹64,479 crore in the previous quarter. On a constant currency basis, revenue declined 3.1% YoY, while total contract value (TCV) stood at $9.4 billion compared to $12.2 billion in the prior quarter. Following this, the TCS share price dropped nearly 3%.
In Q2 FY25, TCS posted a net profit of ₹11,909 crore, up 5% YoY but down 1.08% sequentially, with revenue rising 7.6% YoY to ₹64,259 crore. Total contract value for the quarter was $8.6 billion, down 23% YoY. In response, the TCS share price fell 1.83% the following day.
On Thursday TCS share price was trading mostly flat. As of 11:14 am IST, the stock price was trading at ₹3,035.70 per share, up by 0.28%. On a year-to-date basis, the share price of TCS has seen a decline of over 25%, while in the last five years it has been up by only 15%.
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