Q4 results today: TCS and 2 other companies will announce earnings on Thursday

The fourth quarter earnings season will begin from today as IT services company Tata Consultancy Services will announce its quarterly numbers. Apart from TCS, two other companies, Anand Rathi and Evoq Remedies, will declare their results.

Overall, analysts expect the Q4 numbers to be muted with Nifty earnings growth expected at just 2% YoY. Kotak Institutional Equities expects Nifty profit to decline 0.6% YoY with most sectors likely reporting weak prints.

TCS Q4 result expectations

TCS is likely to post a mid single-digit growth in its revenues during the last quarter of fiscal 2025. Revenue from operations during the third quarter are seen growing 5% year-on-year (YoY), according to an average estimate of six brokerages. However, profit may lag the revenue growth with a rise of just 0.7% YoY.

On a constant currency basis, revenues may decline anywhere between 0.5-0.6% quarter-on-quarter (QoQ), pegged back by a general decline in contribution from BSNL projects.

Segment wise, analysts expect BFSI to show solid performance in the fourth quarter, while manufacturing to be slightly weak. Deal wins are expected to steady at around $11 billion, even though this is a decline from last year period.

Most estimates are pricing in a flattish EBIT margin QoQ as the savings of lower contribution from margin-dilutive BSNL project will likely be reinvested into talent and infrastructure.

Investors will keep a close watch on the commentary around impact of tariffs and recent chain of macro deterioration in the US on business and outlook for FY26. The outlook on client discretionary spend in wake of rising macro volatility in US, commentary on cost takeout projects and BFSI vertical will also be key

"We expect revenue to decline by 0.5% quarter-on-quarter (QoQ) in cc mainly led by falling contribution from BSNL project. Developed market business should remain stable quarter-on-quarter, in our view," said Nuvama.

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