TCS Q3 results today: Is this a stock to buy ahead of Q3FY25 earnings?

Stock Market Today: IT behemoth Tata Consultancy Services (TCS) will declare its results for the third quarter of the financial year 2025 (Q3FY25) today. 

Here is what analysts expect from Q3FY25 earnings performance and their advice on whether to buy, sell or hold the stock ahead of the results.

TCS Q3 Results Expectations

Anshul Jain, Head of Research at Lakshmishree Investment and Securities anticipates year-on-year (YoY) revenue growth between 5.2% and 6.4%, projecting the topline in the range of ₹63,710 crore to ₹64,500 crore. 

The EBIT margin is expected to expand by 110 basis points YoY and 40 basis points sequentially to 24.5%, driven by operational efficiencies, according to Jain's estimates.

“The deal pipeline remains strong, with an estimated $9-10 billion in contract wins during the quarter. BFSI is likely to maintain its momentum, contributing significantly to growth. However, challenges in the UK/Europe and the manufacturing sector must be closely monitored for any potential impact on future performance,” Jain added.

He believes TCS's Q3 performance will be a key indicator of the IT sector's resilience in the current environment.

Sagar Shetty, Research Analyst, StoxBox expects the IT giant's Q3 to remain largely muted on the revenue front, led by the impact of furlough. In addition, the BSNL deal's revenue contribution is likely going to taper down, impacting revenues, however, the absence of a high impact of the BSNL deal in revenue also means improved EBIT margins, said Shetty.

Margin growth would be further supported by operational efficiency, currency tailwinds, and the absence of a wage hike (the last was in Q1FY25), according to Shetty. Management’s commentary on the deal pipeline (especially in the Mega-deal front) and demand environment would be key, he further said.

TCS Q3 results will provide critical insights into the company's ability to navigate macroeconomic uncertainties while sustaining growth.

TCS Q3 Results Day Trading Strategy

Advising a buy-on-dips strategy in TCS shares, Mahesh M Ojha, AVP—Research at Hensex Securities, said, “If the TCS share price dips, then one can buy the stock in the ₹4,060 to ₹4,085 apiece range, maintaining a stop loss at ₹3,980 per share. In the short term, TCS shares may bounce back and touch ₹4,160, ₹4,200, and ₹4,250.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decisions.