India’s leading IT services corporation, Tata Consultancy Services (ASX:TCS), saw its shares trading 0.4% higher in anticipation of Q2 earnings results due later in the day.

Analysts predict an 8.5% year-on-year increase in TCS’s consolidated net profit, which they expect to reach around 113.17 billion rupees, according to LSEG data.

A restrained growth in Q2 revenue is anticipated owing to a lack of discretionary spending and cautious sentiment pervading the top industry sectors, advises brokerage Phillip Capital.

Elara Capital foresees EBIT margin growth of 100 basis points quarter-over-quarter, driven by the absence of wage hikes and remarkably low subcontracting costs in the industry.

Investors are anticipated to closely monitor discretionary spending, deal pipeline, margin outlook, and North American demand.

Experts suggest that TCS may announce a share buyback, which would mark its fifth in six years.

TCS is the first among its peers to disclose September-quarter results, ahead of Infosys and HCLTech which are scheduled to report on Thursday.

Twenty-two out of 42 brokerages rate TCS stock ‘buy’ or higher, 12 ‘hold’, and 8 ‘sell’ or lower.

The median PT is 3,670 rupees.

As of the last close, TCS has risen 13.7% YTD, aligning with the Nifty IT index.

Tata Consultancy Services (ASX:TCS) is India’s top IT services firm.