Particle.news
Download on the App Store

India IT Q3 Preview Signals Resilient Quarter as TCS and HCLTech Prepare Results

Investors will parse guidance on calendar-2026 budgets to gauge demand.

Overview

  • Analysts expect modest sequential growth despite December seasonality, with easing deal delays and steady deal wins supporting revenue momentum.
  • Bloomberg estimates for TCS point to about 2% quarter-on-quarter revenue growth and EBIT margin near 25%, though constant-currency growth remains constrained by the BSNL ramp-down and wage hikes.
  • HCLTech is forecast to post stronger sequential gains, with roughly 5% revenue growth and margin expansion driven by software seasonality even as wage hikes and restructuring costs weigh on profitability.
  • Sector margins are seen as a balance of rupee tailwinds against furloughs, junior-level wage increases, and one-off restructuring or severance items tracked below EBIT in some cases.
  • Brokerages see TCS quarterly deal wins around $7–9 billion, while one house cites potential upside to $10–11 billion and notes an unconfirmed media report of a large telecom deal.