TCS Q2 results on October 9: Here’s how NIFTY IT and stocks are performing today

The Nifty IT index surged nearly 2% on Wednesday, with Infosys (2.38%), Coforge (1.99%) and LTIMindtree (1.92%) driving the rally. At the time of writing the article, Nifty IT was trading 1.64% higher.

Shares of TCS surged 2.3% to hit an intraday high of ₹3,043 apiece ahead of its earnings announcement. Furthermore, Tech Mahindra (1.33%), HCL Technologies (1.24%), Wipro (0.60%), Persistent Systems (0.47%) and Mphasis (0.43%) were the other top movers on the Nifty IT index.

However, Oracle Financial Services Software shares were the only laggard, falling 1.8% in the later afternoon session.  

IT companies remain in focus as the sector continues to face multiple headwinds, including a structural slowdown, regulatory changes in immigration policies, workforce rationalisation, and broader macroeconomic challenges.

TCS Q2 results preview

TCS is expected to report a marginal rise of 1% to 3% in revenue on a sequential basis. The revenue is expected to remain between ₹65,140 and ₹65,220 crore, compared to ₹63,437 crore in the previous quarter and ₹64,259 crore in Q2FY25. Revenue is likely to see low single-digit growth due to lower contribution from the BSNL project, which is nearing completion.

Foreign exchange gains could provide some support to the topline but are likely to be offset by wage hikes during the quarter.

The IT services firm’s net profit could see a 1 to 2% rise during the September quarter, between ₹12,550 and ₹12,700 crore. The company reported a net profit of ₹12,760 crore in Q1FY26 and ₹11,909 crore in Q2FY25. Meanwhile, the EBIT margin is expected to remain flat in the range of 24.3% to 24.5%, while new deal wins are projected between $7 and $9 billion.

Investors will be watching the TCS results closely for any commentary from management on US tariffs and the recent changes to US H-1B visa fees. TCS accounts for a significant proportion of the H-1B visas granted to Indian IT companies, and an increase in fees could affect its cost structure.

Meanwhile, media reports indicate that TCS has called off its planned press conference on October 9 following its Q2 earnings. The reports further suggested that the company cancelled it as coincidence with the death anniversary of Ratan Tata, the former Tata Sons chairman and a revered leader of the Tata Group.

IT sector preview for Q2 FY26

Amid a weak demand environment, revenue growth for large-cap IT companies is expected to remain in the low single digits. Mid-cap IT firms may outperform their larger peers but are likely to face continued headwinds. Tariff-related uncertainties are expected to remain a key factor behind the muted topline growth. However, currency depreciation could provide a modest tailwind for the sector.

According to HSBC Research, top-tier IT companies are projected to post 0%–2% quarter-on-quarter (QoQ) growth, while mid-tier firms are expected to deliver 3%–5% QoQ growth in USD terms.

Given the volatile environment and challenging outlook, investors and market participants are expected to focus closely on management commentary for the remainder of FY26 and FY27.

According to HSBC Global Research, near-term discretionary spending by clients remains subdued; however, there are signs of improvement heading into the next fiscal year, driven by accelerating adoption of artificial intelligence (AI) across enterprises.