TCS shares gained more than 2% in Thursday's trading session ahead of the company's September-quarter results, with expectations around the upcoming IT earnings season also lifting other major technology stocks.

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TCS shares climbed 3% to ₹2,141.50. Mphasis, Coforge, Infosys and HCL Technologies also advanced, while all 10 constituents of the Nifty IT index were trading at least 1% higher.

Analysts expect TCS to report around 0.5% sequential revenue growth and 2.8% year-on-year growth, with margins broadly stable from the June quarter. Deal wins are estimated at $10–11 billion.

Market attention, however, is likely to remain focused on management commentary rather than headline earnings. Investors will closely track trends in discretionary technology spending, deal conversions and TCS' ability to rebuild margins towards its 25% or higher exit target.

Analysts expect growth across the IT sector to remain uneven. TCS and Infosys could post single-digit growth, while HCL Technologies, Tech Mahindra and Coforge are expected to deliver stronger growth rates.

Q2 is traditionally a stronger quarter for Indian IT companies, although analysts expect this period to be more mixed. IDBI Capital identified TCS as a preferred large-cap value pick, citing AI-led services demand and potential margin recovery as wage-cost pressures ease.

At around 13.8 times estimated FY27 earnings, TCS offers potential upside, although its valuation leaves limited room for disappointing results. Key risks include weaker mega-deal activity and increased investment in AI-related capabilities.