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Informist, Friday, Oct. 10, 2025

MUMBAI – Information technology stocks are expected to remain range-bound in the upcoming week, with stock-specific movements on account of September quarter earnings and post-earnings management commentaries. Major large-cap and mid-cap companies in the sector, including Infosys, Wipro, and Tech Mahindra, are scheduled to announce their September quarter earnings next week, starting with HCL Technologies Monday.

The September quarter earnings of domestic IT companies are expected to remain muted, with little to no change in the demand environment from the June quarter, which was affected by US-tariff related concern. The dozen IT companies in the Nifty 200 index are expected to report a low-single-digit sequential rise in both net profit and revenue for the reporting quarter, estimates from 17 brokerages showed. The aggregate net profit and revenue of these companies are expected to rise 2% and 4%, respectively, on a sequential basis. Year on year, the aggregate net profit and net sales of these companies are expected to rise 6% and 5%, respectively, the data show.

Among the major IT companies announcing their quarterly results next week, HCL Technologies is expected to post double-digit sequential growth in its bottom line and outperform most large-cap technology companies in the September quarter. The company's top line for the reporting quarter is expected to see a 4% rise on a sequential basis, outpacing most of its large-cap peers but lower than the high-single-digit to double-digit sequential growth expected for its mid-cap peers. Similarly, Tech Mahindra is expected to report 13% sequential rise in its net profit and 3% rise in sales.

Another large-cap major, Infosys, is expected to report 4% sequential growth in top line and bottom line for the September quarter, against the 1.6% sequential fall in adjusted profit and 3.3% growth in revenue for the trailing quarter. LTIMindtree is expected to report a low-single-digit sequential rise in sales and net profit, according to the average of estimates from brokerages. Wipro's bottom line for the quarter is expected to remain flat on quarer with a 3% rise in revenue.

IT sector behemoth Tata Consultancy Services and mid-cap technology player Tata Elxsi announced their September quarter earnings Thursday. While TCS beat analysts' estimates on the revenue front, its net profit for the quarter missed the Street's view. The company's bottom line was hit by restructuring expenses of around INR 11 billion. In Tata Elxsi's case, the net profit and sales figures for the September quarter were largely in line with the Street's view, led by a recovery in its software development and services segment revenue.

Over the week, the Nifty IT index gained nearly 5%, outpacing most sectoral indices as well as the benchmark indices. HCL Technologies, Coforge, LTIMindtree, and Persistent Systems were the top gainers in the 10-stock index, rising 5.7-7.3% over the week. Next week, the sectoral index is seen hitting resistance at 36083.50 points and finding support at 35084.60 points.

TOP HEADLINES

* TCS to create 5,000 jobs in UK, launches AI experience zone in London
* Cyient appoints Utkarsh Srivastav as chief marketing officer
* Happiest Minds deploys agentic AI solution at South Africa's MUA Insurance
* Analyst Concall: Tata Elxsi expects better auto sector business in Oct-Mar
* TCS headcount falls by 19,500 in Jul-Sept, highest-ever sequential decline
* Analyst Concall:TCS to let go employees who don't find seniority-based roles
* Earnings Review: Revival in software ops drives Tata Elxsi's Q2 PAT, sales
* Earnings Review: Sharp restructuring costs drag down TCS consol PAT in Q2
* TCS to build 1 GW capacity AI data center, acquire ListEngage MidCo in US
* Infosys moves HC on show-cause notice of INR 4.15 bln from tax officials
* Netweb Tech, Bud Ecosystem to jointly develop AI infra solutions in India
* Andhra govt OKs Google arm Raiden Infotech's INR-875-bln data center project
* Earnings Outlook: Tata Elxsi to see gradual recovery in Q2 after 3 weak qtrs
* Birlasoft appoints Komal Jain as CEO - Americas
* Intellect Design launches AI lending solution PF Credit for banks, fin cos
* LTIMindtree inks multi-year deal with global media firm, its largest so far
* HCL Tech joins MIT Media Lab in US for next-generation AI research
* LIC acquires 5.93 mln shares of LTIMindtree via market purchase
* Infosys in pact with Telenor Shared Services to modernise co's HR operations

Following are the resistance and support levels for key IT stocks for next week as per calculations based on their prices on the National Stock Exchange:

End

Reported by Arya S. Biju

Edited by Rajeev Pai

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