Shares of Tata Consultancy Services opened lower on Thursday, declining 2.04% to ₹2,536.30 in early trade despite the company reporting a largely in-line set of Q4 FY26 results after market hours on Wednesday. The stock opened at ₹2,565.80, hit a low of ₹2,530.10, and was trading with heavy volumes of over 19.63 lakh shares on the NSE as of 9:25 AM IST. The previous close was ₹2,589. The sell-side dominated, with 51% sell quantity versus 49% buy quantity, reflecting cautious sentiment in early trade.
The results themselves were not bad by any measure. TCS reported Q4 revenue of ₹70,698 crore, up 5.4% quarter-on-quarter, with operating margin at 25.3% — up 10 basis points QoQ. Annualised AI revenue crossed US$ 2.3 billion, deal wins came in at a strong $12 billion TCV for the quarter, and the board proposed a final dividend of ₹31 per share. For the full year, FY26 operating margin stood at 25% — the highest in four years.
So why is the stock falling?
The answer lies less in what was reported and more in what was guided. Markets were hoping for a confident, forward-looking commentary that signals a demand revival in FY27 — particularly given the stock’s significant underperformance over the past year. The 52-week range of ₹2,346.20 to ₹3,630.50 tells its own story — TCS is trading closer to its annual low than its high, and investors needed a reason to re-rate the stock upward, not just a confirmation of existing expectations.
Additionally, the broader global macro environment — ongoing geopolitical uncertainty, US-Iran war tensions, and cautious client spending in key markets — continues to weigh on IT sector sentiment regardless of individual company performance. When results are in-line rather than a clear beat, the market’s default reaction in this environment is to sell the news.
The reaction is also consistent with a pattern seen across the IT sector this earnings season — good numbers are getting a muted or negative response simply because the bar for re-rating is now higher than just meeting estimates.
TCS’s 52-week low stands at ₹2,346.20, providing the next key support level to watch if selling pressure continues through the session.