Tata Consultancy Services Ltd. (TCS) has reported a modest 1.4% rise in net profit to ₹12,075 crore, falling short of analysts’ expectations amid concerns surrounding weak IT demand and potential changes to US visa policies affecting outsourcing.
As traders anticipated TCS’s quarterly earnings, options indicated a projected average move of 2.3% for Nifty 50 Index members on the earnings day, marking the lowest forecast since 2016. For TCS specifically, the market was prepared for a 3% shift, slightly below the historical average of 3.2% observed in the previous eight quarters. On the release day, TCS shares experienced a maximum decline of 1.8% before recovering some losses.
In light of a subdued earnings season, Indian equities have struggled to surpass their June peak, as foreign investors withdraw their capital. Ongoing concerns about the economic implications of tariffs imposed by US President Donald Trump and stagnant urban consumption have contributed to low volatility in the market. The India NSE Volatility Index is currently just 0.3 points above its record low reached last month.
Kranthi Bathini, an equity strategist at WealthMills Securities Pvt., noted, “Investor expectations are subdued this earnings season, with many choosing to stay on the sidelines given the lack of clarity on the quarter’s outlook.”
TCS, often seen as a bellwether for the Indian earnings season, attributed its modest profit growth to sluggish demand in the IT sector, while also gearing up for the potential effects of alterations to a key US visa program. The net income for the three-month period ending in September did not meet the average analyst projection of ₹12,560 crore.
More developments can be found on bloomberg.com.
Published on October 10, 2025.