The Indian IT sector is expected to report mixed results for the quarter, with some companies showing stronger growth than others. According to Bloomberg estimates, Tata Consultancy Services (TCS) is expected to report headline growth, but this may be masking continued pressure in constant-currency terms due to the lingering impact of the BSNL ramp-down. The company’s attrition rate is expected to remain low, and headcount is likely to remain stable, indicating limited near-term hiring appetite as the company manages wage hikes and restructuring-related costs.
In contrast, HCL Technologies (HCLTech) is expected to report stronger sequential growth, driven by seasonal strength in its products and platforms business. The company’s margins are expected to expand despite wage hikes, and the Street is expecting a dividend announcement, which would place shareholder returns alongside guidance updates in focus.
Infosys is expected to report a steady quarter, with limited movement in profit but an improvement in constant-currency revenue growth. The company’s headcount is expected to remain stable, reinforcing the view that it is prioritizing execution and margin discipline over expansion.
Wipro is expected to report a sequential pickup in revenue and operating profit, aided by inorganic contribution. However, margin movement is expected to remain constrained. The company’s headcount is forecast to stay largely unchanged, while expectations of a dividend keep capital return on the agenda.
Overall, the Indian IT sector is expected to report mixed results, with some companies showing stronger growth than others. While TCS and Wipro are expected to face challenges, HCLTech and Infosys are expected to report stronger results. The companies are also expected to prioritize margin discipline and shareholder returns, with dividend announcements and capital return expected to be in focus. The sector’s performance will be closely watched, as it is a key indicator of the health of the Indian economy.