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TCS, HCLTech Set to Kick Off India IT Q3 With Modest Sequential Gains Expected

Analysts cite easing deal delays as the offset to December softness.

Overview

  • TCS is forecast to post a quarter-on-quarter revenue rise of about 2% to roughly Rs 66,849 crore with EBIT up about 8% and margin near 25%, though constant-currency growth remains pressured by the BSNL ramp-down.
  • HCLTech is projected to deliver stronger sequential growth, with revenue up about 5% to Rs 33,262 crore and margin improving to roughly 18.1% on software seasonality despite wage and restructuring costs.
  • Brokerages expect a stable but muted sector print, with Tier-1 firms seen growing 0.8%–2.4% sequentially as deal ramp-ups and better pipeline conversion offset fewer billing days.
  • Investors will track commentary on deal pipelines, AI-led engagements, client budgets for calendar 2026, North America and Europe demand trends, and any tweaks to FY26 guidance.
  • TCS deal wins are widely estimated near $7–9 billion for the quarter, while Kotak flags $10–11 billion as possible and notes an unconfirmed media report of a telecom mega-deal.