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New Delhi: Shares of Tata Consultancy Services (TCS) dropped 2.51 per cent on Friday morning trade after its June quarter earnings failed to enthuse investors.
The bellwether stock declined 2.43 per cent to Rs 3,300 on the BSE.
At the NSE, it went lower by 2.51 per cent to Rs 3,297.
Other IT stocks too faced selling pressure, with Infosys, Tech Mahindra, HCL Tech and Wipro quoting in the negative territory.
In the equity market, the 30-share BSE Sensex traded 352.91 points lower at 82,837.37, and the 50-share NSE Nifty quoted 91.45 points down at 25,263.30.
"TCS Q1 FY26 results beat street expectations with a 6 per cent profit rise, though demand contraction due to geopolitical uncertainties capped excitement," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The country's largest IT services company TCS on Thursday reported a 6 per cent growth in June quarter net profit at Rs 12,760 crore, helped by a jump in non-core income even as revenues grew at a tepid pace.
The rupee revenue grew 1.3 per cent to Rs 63,437 crore during the quarter, but was down by over 3 per cent on a constant currency basis, as the company faced headwinds in its major markets amid a winding down of the BSNL deal which helped it in recent quarters.
The other income for the company, which is the first major player to report the April-June performance, jumped to Rs 1,660 crore from Rs 962 crore last year, courtesy an one-time write-back of income tax paid earlier, which helped the company's bottomline.
Its managing director and chief executive K Krithivasan said it is experiencing a "demand contraction" due to the continuing uncertainties on the macroeconomic and geopolitical fronts, and added that he does not see a double-digit revenue growth in FY26.
"Q1 results of TCS indicate continuing struggle for IT companies, particularly large cap IT. However, midcap IT is likely to do well," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, said.