July 14,2025 — Tata Consultancy Services (TCS) shares continued to fall for the second consecutive session on Tuesday after the company reported weaker-than-expected financial results for the first quarter of fiscal year 2026. The stock declined by 1.5% during intraday trade on the NSE, following a 1.2% drop the previous day, as investors reacted negatively to the muted earnings report.
India’s largest IT services firm reported a consolidated net profit of ₹11,120 crore for the April–June quarter, registering a modest 8.7% year-on-year growth. Revenue for the quarter came in at ₹62,613 crore, up 5.4% from the corresponding period last year. The performance, however, missed analyst expectations amid macroeconomic uncertainties and soft client spending in key markets such as North America and Europe.
Following the results announcement, the TCS stock was seen trading near ₹3,850, marking a sharp decline from its recent highs. The fall in share price erased over ₹15,000 crore from the company’s market capitalization, impacting overall investor sentiment within the Nifty IT index.
Despite the subdued earnings, the company’s board declared an interim dividend of ₹11 per equity share for the quarter, with the record date fixed for July 20, 2025. The dividend payout, while a positive move for long-term investors, did little to offset the market’s disappointment over the lackluster financial performance.
Analysts attribute the weak Q1 show to delayed deal ramp-ups and cautious spending behavior among global clients. Brokerage firms including Motilal Oswal and Kotak Institutional Equities have revised their revenue and margin estimates for TCS, citing continued challenges in discretionary IT spending and project closures.
TCS CEO K. Krithivasan acknowledged the current macroeconomic environment but expressed confidence in long-term business momentum. “While the quarter saw challenges in certain verticals, we remain focused on expanding our pipeline and enhancing delivery capabilities,” he said during the post-earnings conference.
The company’s attrition rate continued its downward trend, indicating improved workforce stability. However, hiring remains muted, with TCS stating it would adopt a cautious approach in onboarding fresh talent for the near term.
As the IT sector grapples with global demand volatility, TCS’s Q1 performance reflects broader industry trends. With uncertain recovery timelines and prolonged deal cycles, analysts expect Indian IT firms to face continued headwinds in the coming quarters.
