Tata Consultancy Services shares are in the spotlight ahead of the December-quarter earnings announcement, with analysts closely monitoring margin trends and the BSNL ramp-up progress. Bloomberg estimates indicate that while headline growth appears positive, underlying constant-currency performance continues to face pressure from the ongoing BSNL ramp-down impact.

The December quarter traditionally represents a seasonally weak period due to fewer billing days. However, analysts note that delays and deferrals have shown improvement compared to earlier periods, with expectations of better execution in select verticals.

Bloomberg Q3 Estimates

Bloomberg's consolidated quarter-on-quarter projections for TCS present the following outlook:

Brokerage Expectations

Investec

Investec projects 0.8% quarter-on-quarter growth in constant currency and 0.5% growth in US dollar terms. The brokerage expects delays and deferrals to ease with a potential turnaround emerging in the communications, media and entertainment vertical. EBIT margins are anticipated to face impact from the two-month wage hike for junior employees, while severance costs are likely to be treated as one-off items below the EBIT line.

Jefferies

Jefferies forecasts 0.5% quarter-on-quarter constant-currency revenue growth, driven by international markets with no contribution expected from the BSNL deal. The brokerage expects margins to rise by 50 basis points, supported by headcount reduction and rupee depreciation, though partially offset by wage hikes and furloughs. Deal wins are projected in the ₹7-9 billion range, with an exceptional severance-related item of ₹800 crore anticipated.

UBS and Nuvama

UBS expects growth to remain impacted by the BSNL ramp-down, with margins seen declining slightly due to furloughs, partly offset by rupee depreciation. Nuvama projects 0.5% quarter-on-quarter constant-currency growth and 0.2% growth in US dollar terms, driven by developed markets. However, Nuvama anticipates margin decline of about 60 basis points due to the two-month wage hike impact.

Key Focus Areas

Analysts will be monitoring several critical aspects during the earnings announcement:

• BFSI demand trends and North America/Europe market performance
• Calendar-year 2026 budget discussions and planning
• Restructuring impact on margin profiles
• BSNL phase-two ramp-up timeline and execution
• H-1B visa fee implications
• Artificial intelligence adoption progress
• US macro outlook and employee restructuring updates

The quarter's performance will be particularly significant as it may indicate whether the company can navigate through current headwinds while positioning for stronger growth in subsequent quarters, especially if the BSNL ramp-up materializes and earlier deal closures translate into revenue recognition.

Tata Consultancy Services has scheduled its Board of Directors meeting for January 12, 2026, to review and approve the company's audited standalone and consolidated financial results for the third quarter of FY 2025-26 ended December 31, 2025. The results announcement will take place after market trading hours, followed by an earnings call with analysts and investors.

Board Meeting and Results Timeline

The IT services giant informed exchanges on December 23, 2025, about the upcoming board meeting agenda. Along with financial results approval, the board will consider routine business matters and review consolidated results of Tata Consultancy Services and its subsidiaries for the same period.

Third Interim Dividend Consideration

The board will deliberate on declaring a third interim dividend for FY26 equity shareholders during the meeting. The company has established January 17, 2026, as the record date to determine shareholder eligibility for the proposed interim dividend payment.

Trading Window Closure

In compliance with insider trading prevention regulations, Tata Consultancy Services has suspended trading in company securities for designated persons from December 24, 2025. The trading window will reopen 48 hours after the financial results declaration, ensuring regulatory compliance during the sensitive period.

Previous Quarter Performance

Tata Consultancy Services demonstrated solid financial performance in Q2 FY26, with consolidated revenue reaching ₹65,799.00 crores compared to ₹64,259.00 crores in the corresponding quarter of the previous fiscal year.

Share Price Performance

TCS shares closed at ₹3,212.60 on the NSE on Friday, registering a 0.27% gain for the session. The stock has experienced mixed performance across different timeframes, declining 2.35% over the last five trading sessions and 0.60% in the past month. However, shares have gained nearly 1.00% over six months and risen over 9.00% in the last year, while showing a year-to-date decline of 1.91%.