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Informist, Thursday, Apr. 9, 2026

 

By Shakshi Jain

 

NEW DELHI – Indian information technology services companies are expected to once again report lukewarm results as demand remained largely unchanged in the March quarter, according to analysts. Brokerages estimate a limited impact on earnings of companies in the sector from the war in West Asia for the reporting quarter.

 

"There has been some improvement in discretionary tech spending in BFSI (banking, financial services, and insurance) and technology verticals. However, verticals such as manufacturing, automotive, and communications remain weak," Centrum Broking Ltd. said in an earnings preview report.

 

The 13 IT companies that are a part of the Nifty 200 index are expected to report an aggregate sequential bottom line decline of 2.3% for the March quarter, according to the average of estimates from 16 brokerages. However, on a year-on-year basis, their cumulative net profit is expected to rise nearly 11%. The estimates were compared to the adjusted net profit of these companies for the trailing quarter, which excludes the impact of exceptional items and one-time costs due to the new labour codes.

 

The combined adjusted net profit of these companies had risen over 9% sequentially in the December quarter. Including the one-time items, their aggregate bottom line had fallen over 10% in Oct-Dec.
 
The aggregate top line of these 13 companies is expected to rise 3.5% sequentially and almost 12% on year for the March quarter, as per the average of estimates. This is slightly higher than the 3.2% sequential revenue growth and the near-9% year-on-year rise these companies had reported for the December quarter.

 

All the 13 companies are likely to individually post sequential growth in their revenue for the reporting quarter, the estimates show. However, the net profit of six companies--HCL Technologies Ltd., Infosys Ltd., LTIMindtree Ltd., Persistent Systems Ltd., Tata Elxsi Ltd., and Tata Consultancy Services Ltd.--is expected to decline by 1-11% for the reporting quarter.

 

Brokerages are unanimous in their view that mid-cap IT players are likely to once again report better revenue growth compared with their larger peers, making it at least the fifth consecutive quarter for this trend. In constant currency terms, Nomura Financial Advisory and Securities (India) Pvt. Ltd. expects Tier-I IT players to deliver anywhere between a sequential revenue decline of 1% to a growth of 1% for the March quarter and mid-tier firms to report 0-4% growth.

 

OPERATIONS, GUIDANCE

Analysts estimate the continued depreciation of the rupee against the dollar likely aided margin improvement for IT companies in the March quarter. "However, we expect a significant portion of the currency benefit is either likely to be passed onto the customers in renewals or invested into AI (artificial intelligence) initiatives of the companies," Nomura Financial Advisory said. The rupee depreciated 5.5% against the dollar during the quarter to 94.83 a dollar.

 

JM Financial expects Infosys to guide for 2% to 4% constant currency revenue growth for FY27 alongside a margin guidance of 20% to 22%. The brokerage sees HCL Technologies guiding for 4% to 6% revenue growth in IT services and 3% to 5% for the overall business for FY27. HCL Technologies will likely provide a margin guidance of 17.5% to 18.5% for FY27, as per the brokerage's expectations. For the June quarter, the brokerage estimates Wipro will guide for (-)1.5% to +0.5% sequential change in constant currency revenue, largely due to delays in ramp-up of deals.

 

This earnings season, investors will watch out for management commentaries on demand and deal closures, likely price deflation due to AI, impact of the war in West Asia, revenue and margin guidance for FY27, and hiring and acquisition plans. TCS will kick off the season by announcing its March quarter results later Thursday.

 

Following are the Jan-Mar earnings estimates for 13 IT companies which are part of the Nifty 200, from 16 brokerages:

 

Company Name	Net Sales (INR million)	Net Profit (INR million)	Net Sales Y-o-Y % Change	Net Profit Y-o-Y % Change	Net Sales Q-o-Q % Change	Net Profit Q-o-Q % Change	EBITDA	Earnings Date	No. of brokerages polled
	Estimated
	Net Sales	Net Profit
Coforge +	44,524	4,380	30.57	68.58	6.31	10.10	8,477	May 05	13
HCL Tech +	3,44,796	47,225	14.00	9.65	1.79	-6.15	70,687	Apr 21	16
Infosys +	4,66,267	75,527	13.93	7.39	2.52	-4.91	1,09,895	Apr 23	16
KPIT Technologies +	16,926	1,931	10.75	-21.10	4.65	0.04	3,501	--	9
LTIMindtree +	1,12,274	14,151	14.90	25.39	4.14	-9.34	20,155	Apr 23	15
Mphasis +	42,307	5,033	14.03	12.71	5.70	5.36	8,031	Apr 29	14
Oracle Financial Services Software +	20,380	7,010	18.74	8.87	3.67	6.31	N.A.	--	1
Persistent Systems +	40,066	5,226	23.58	32.04	6.05	-1.12	7,744	Apr 21	14
Tata Elxsi	9,927	1,830	9.29	6.14	4.11	-10.55	2,268	--	6
Tata Technologies +	15,285	1,863	18.89	-1.36	11.92	9.27	2,537	--	6
TCS +	6,98,399	1,37,899	8.31	12.81	4.10	-1.84	1,91,341	Apr 09	16
Tech Mahindra +	1,48,115	14,886	10.67	27.59	2.91	6.75	25,164	Apr 22	16
Wipro +	2,45,428	34,989	9.06	-1.98	4.19	2.25	49,477	Apr 16	16
Total	22,04,694	3,51,948	11.85	10.74	3.49	-2.32

 

End

 

Edited by Ashish Shirke

 

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