Can Canara Robeco AMC retain equity edge? Will Q2 results put TCS out of its misery?

n business, a quarter can feel like a lifetime. Ask Tata Consultancy Services Ltd's (TCS's) chief executive officer, K. Krithivasan. The July-September period tested the country's largest IT (information technology) services firm on several fronts-one external, and two self-made challenges. US President Donald Trump's move to hike the H-1B visa fee to $100,000, starting next year, rattled India's tech majors. Mid-cap firms have said it won't hurt them, but analysts agree that it will hit the big five, including TCS.

- Mayur Bhalerao

A lso, growth has slowed with a few analysts even expecting TCS to report a full-year revenue decline, its first since the company went public in 2004.

That's only half the worry. The immediate battle Krithivasan and his team faces is how to motivate the company's over 600,000 troops as it plans to lay off 2% or 12,000 engineers. Morale inside the company has hit rock bottom.

The rise of artificial technologies has further muddied waters and poses an existential risk to firms like TCS.

Under Krithivasan, TCS added $1.19 billion in incremental revenue, far less than his predecessors. In this time, Infosys and HCLTech added $873 million and $847 million, respectively. Lack of big-ticket deals, business leakages to smaller peers, automation tools resulting in fewer billings, and an uncertain demand environment are some of the contributing factors that also make one

wonder how can Krithivasan prove the naysayers wrong.

Investors, too, are losing patience. Shares of TCS have declined 27.2% since the start of the year, making it the worst performer among the country's big four, even as the BSE Sensex gained 4.58%.

TCS, for the first time in its history, has cancelled its customary post-earnings press briefing. The firm has not given a reason. The management will, however, engage with analysts after its earnings.

TCS's primary concern is to boost its topline. While the company bagged a $640 million deal with Tryg, a Scandinavian insurance firm, last month, much work needs to be done. At least six brokerages expect the company to report 1% sequential growth at best.

"The ramp-downs in a few accounts and share losses could lead to moderate growth," said Kotak Institutional Equities analysts in a note.

Added uncertainty on tariff and visa policies in the US, its largest market, might cast a shadow on revenue. TCS does not give out any revenue guidance but its commentary on growth and demand outlook will be gauged.