Tata Consultancy Services shares rise ahead of Q2 earnings

Shares of Tata Consultancy Services (TCS) and other major Indian IT firms rose ahead of the September-quarter earnings season. TCS shares saw gains of nearly 3% on the BSE, bucking a broader market decline.

Investors are closely monitoring upcoming results to determine if demand is stabilizing and if margins can move toward targets of 25% or higher. While year-on-year revenue growth is expected to be healthy—with some estimates projecting an 11% increase for TCS—sequential growth from the previous quarter is expected to be modest.

Other companies in the sector, including HCL Technologies, Tech Mahindra, Infosys, Mphasis, and Coforge, also saw upward movement. Analysts suggest that management commentary regarding discretionary spending, deal conversions, and AI-led service demand will be critical in shaping sentiment for the entire IT sector.