TCS Faces Mixed Trading Despite Revenue Growth Optimism

TCS's shares concluded flat following a minor drop in the March quarter net profit. Despite initial gains, shares experienced volatility, ultimately closing down on both BSE and NSE. Optimism remains for FY26 due to a strong order book, despite deferred wage hikes amid current business uncertainties.

Tata Consultancy Services' (TCS) shares closed on a flat note last Friday, despite a 1.7% net profit decline in the March quarter. The initial trading saw shares rise by 1.61% but ended down by 0.43% on the BSE at Rs 3,232.30, and down by 0.26% on the NSE at Rs 3,238.

TCS, part of the Tata Group, attributed the profit drop to margin contraction. Total traded share volumes reached 2.29 lakh on BSE and 71.09 lakh on NSE. Despite missing street estimates, optimism for FY26 persists due to expected growth in the order book.

The firm's FY25 net profit rose by 4.2% to Rs 48,553 crore amid a 6% revenue growth to Rs 2.55 lakh crore. CEO K Krithivasan anticipates FY26 to perform stronger on revenue but has deferred wage hikes amid ongoing business challenges.

(With inputs from agencies.)