TCS share price rose almost 3% in morning deals on the BSE on Thursday, 8 October, ahead of the IT major's September quarter (Q2FY27) results. TCS shares started the day at ₹2,098.80 against their previous close of ₹2,084 and climbed 2.8% to an intraday high of ₹2,142.
According to brokerage firm Motilal Oswal Financial Services, TCS may report 0.5% quarter-on-quarter (QoQ) constant currency (CC) revenue growth, as steady execution in BFSI and 'technology and services' is likely to be offset by softness in the consumer vertical.
Motilal expects TCS's EBIT margin to expand nearly 100 bps QoQ to nearly 25%, largely due to the reversal of the annual wage hike impact. However, Motilal believes continued investments in AI capabilities, talent, and partnerships will weigh on margins.
As per the brokerage firm, annualised AI services revenue should continue the strong momentum due to increasing demand for AI-led modernisation, autonomous GBS, cybersecurity, and sovereign cloud.
Commentary on the demand environment, the pace of revenue growth, and further details on the Porsche partnership and acquisition deal will be key monitorables, as per Motilal.