BSNL ramp-down, deal delays may weigh on TCS earnings

MUTED OUTLOOK

- URVI MALVANIA

INDIA'S LARGEST IT services firm, Tata Consultancy Services (TCS), is expected to see muted-to-negative revenue growth in the April-June quarter of FY26, due to the winding down of the Bharat Sanchar Nigam Limited (BSNL) deal and delays in the ramp-up of some long-term projects.

The firm could be staring at a sequential decline in revenues of as much as 3.4% on a constant currency basis in its top line, according to analysts. Moreover, they expect TCS to report a total contract value (TCV) of $7-9 billion even as a "wait and watch" approach from clients is likely to have kept deal closures modest.