TCS outlook strong despite Q4 miss

Tata Consultancy Services (TCS) may have fallen short of earnings expectations for the January-March quarter, but brokerages remain largely bullish on the company’s long-term prospects, on the back of a solid deal pipeline and anticipated margin recovery in FY26.

The company posted a consolidated revenue of Rs 64,479 crore during the quarter, which was up 0.8% sequentially, but below Bloomberg’s estimate of Rs 64,837 crore. Net profit came in at Rs 12,224 crore, a 1.3% decline from the previous quarter and below estimates of Rs 12,765 crore. Operating margins also dipped by 30 basis points to 26.3%, impacted by salary revisions and higher marketing and travel spends.