New Delhi, April 10 Shares of India's largest IT services company, TCS, ended about 2.5 per cent lower on Friday after its March quarter earnings failed to impress investors.
The stock declined by 2.45 per cent to close at Rs 2,524.35 on the BSE. During the day, it fell by 3.32 per cent to Rs 2,501.70.
At the NSE, the stock edged down by 2.49 per cent to close at Rs 2,524.30.
The company's market valuation eroded by Rs 22,938.67 crore to Rs 9,13,331.92 crore.
TCS reported a 12.22 per cent jump in its March quarter net profit to Rs 13,718 crore, driven by improved profit margins.
For the fiscal year 2025-26, its profit after tax increased by 1.35 per cent to Rs 49,210 crore, compared to Rs 48,553 crore in FY25.
In the reporting quarter, its revenue from operations jumped by 9.64 per cent to Rs 70,698 crore from Rs 64,479 crore in the year-ago period, while the full fiscal year revenue increased by 4.58 per cent to Rs 2.67 lakh crore.
Other IT stocks also ended lower, with Infosys declining by 2.94 per cent, LTIMindtree (1.48 per cent), Tech Mahindra (1.44 per cent), and HCL Tech (0.98 per cent).
The BSE IT index dropped by 1.70 per cent to 29,902.28.
"The IT sector also remained under pressure, led by weakness in Tata Consultancy Services. Despite stable profit growth, the market reaction highlights concerns around growth quality and forward guidance," said Hariprasad K, Research Analyst and Founder, Livelong Wealth.
TCS was the first company in the $315-billion Indian IT sector to report its earnings for the fiscal year 2025-26, which saw the deepening of artificial intelligence (AI) technologies and subsequent concerns about the intensity of employment in the sector, which produces some of the best quality jobs in the economy.