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HomeMarket NewsInfosys, Wipro ADRs fall up to 5% after TCS Q1 earnings miss
Infosys and Wipro ADRs fell up to 5% after TCS’s Q1 results missed Street estimates.
American Depositary Receipts (ADRs) of Infosys and Wipro declined in overnight trade on Thursday following Tata Consultancy Services' (TCS) weaker-than-expected Q1 earnings.
Infosys ADRs dropped 3.32% to $18.19, while Wipro ADRs fell 4.9% to $2.92, reflecting cautious investor sentiment towards the broader Indian IT pack after TCS missed revenue estimates across most metrics.
TCS, which kicked off the Nifty 50 earnings season for the June quarter, reported a 3.3% sequential decline in constant currency revenue, compared to the 1.4% drop expected by a CNBC-TV18 poll.
In rupee terms, revenue came in at ₹63,437 crore, down 1.6% QoQ, versus the projected ₹64,206 crore. Dollar revenue declined 0.6% QoQ to $7,421 million, missing the expected 0.6% growth.
Also read: TCS Q1 Results: Constant currency revenue drops 3.3%; deal wins at $9.4 billion
Despite the top-line miss, net profit stood at ₹12,760 crore, ahead of Street estimates of ₹12,127 crore, aided by higher other income. Operating performance also fell slightly short, with EBIT at ₹15,514 crore versus an estimate of ₹15,623 crore, while EBIT margin came in at 24.5%, marginally above expectations.
Deal wins also moderated. Total contract value (TCV) for the quarter stood at $9.4 billion, lower than the $12.2 billion reported in Q4 FY25.
The cautious tone of the results and the muted commentary have heightened concerns about a slower recovery in discretionary tech spending—dragging down sentiment in sector peers.
