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.
TCS Q2 results preview
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.
JM Financial expects TCS to report a 0.5% QoQ CC revenue growth in Q2FY27, with a 20-bps sequential decline in CC growth.
Systematix Institutional Equities expects a 0.6% QoQ growth in CC revenue, supported by a recovery in its international business, with BFSI and manufacturing expected to aid growth.
TCS dividend expectations
TCS may announce a second interim dividend today, i.e., 8 October, alongside its Q2FY27 financial results.
TCS in an exchange filing has said that its board of directors on 8 October will “consider declaration of a second interim dividend to the equity shareholders.”
The company has fixed Wednesday, 14 October 2026, as the record date for the dividend payout if announced.
“The second interim dividend, if declared, shall be paid to the equity shareholders of the company whose names appear in the company’s register of members or in the records of the depositories as beneficial owners of the shares as on Wednesday, 14 October 2026, which is the record date fixed for this purpose,” the IT firm said in its exchange filing.
TCS share price trend
The IT stock has suffered significant losses this year, largely due to sectoral headwinds, including muted demand, cautious discretionary spending amid macroeconomic challenges, and AI-led disruption.
The stock is down 34% year-to-date, compared with a 15% decline in the equity benchmark Sensex and a 23% drop in the BSE IT index.
The stock hit a 52-week high of ₹3,336.70 on 3 February and a 52-week low of ₹1,976 on 1 July this year.
Tech experts decode what’s next for the IT stock
According to Aditya Thukral, founder and analyst at AT Research and Risk Managers, TCS has been in a downtrend since the formation of all-time highs in August 2024. The moves have been impulsive in nature; however, these seem to be part of a corrective structure.
Thukral added that the stock is in the last stages of its correction, and a fresh bottom below ₹1,976.80 could present a buying opportunity, though investors should not jump into buying but should wait for the stock to stabilise.
“All the rallies will continue to get sold off till the time another leg of correction is completed on the downside. The stock is trading below all the major EMAs, and approaching the resistance zone will again attract selling,” said Thukral.
“The stock is in corrective mode, which is expected to continue for some more months before the stock can find a bottom. Existing investors could try to exit near the resistance zone of ₹2,180 to ₹2,260. Fresh longs should only be executed once we start getting clues of completion of the correction,” Thukral said.
Vipin Kumar, AVP-Research at Globe Capital Market, said TCS is trending lower, making lower lows and lower highs below both its long-term and short-term moving averages.
However, Kumar underscored that the stock is currently trading near key positional support at the ₹1,900– ₹1,960 spot levels, raising the possibility of a bounce back.
“A base formation could also be on the cards if it manages to hold above this support zone,” said Kumar.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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