HCL Technologies Ltd., a Noida-based company, has significantly outperformed its peers in the Indian IT sector over the past four years. Unlike its competitors, such as Tata Consultancy Services Ltd. and Infosys Ltd., which experienced a decline in market value, HCLTech has demonstrated remarkable resilience and delivered a robust 29% return. This impressive performance can be attributed to the company’s stable leadership and its early adoption of artificial intelligence (AI) technology.

The IT sector has been facing significant challenges in recent years, including increased competition, changing market trends, and technological disruptions. However, HCLTech’s proactive approach to embracing AI has enabled the company to stay ahead of the curve and capitalize on new revenue streams. By investing in AI, HCLTech has been able to enhance its service offerings, improve operational efficiency, and provide innovative solutions to its clients.

The company’s stable leadership has also played a crucial role in its success. A consistent and visionary leadership team has enabled HCLTech to navigate the complexities of the IT industry and make strategic decisions that have driven growth and profitability. The company’s ability to adapt to changing market conditions and stay focused on its long-term goals has been instrumental in its outperformance.

In contrast, HCLTech’s peers have struggled to keep pace with the changing landscape of the IT industry. Companies like Tata Consultancy Services Ltd. and Infosys Ltd. have faced challenges in terms of declining market value, which can be attributed to their slower adoption of new technologies and inability to adapt to changing market trends.

Overall, HCLTech’s impressive performance over the past four years is a testament to the company’s strategic vision, stable leadership, and ability to innovate and adapt to changing market conditions. As the IT industry continues to evolve, HCLTech is well-positioned to maintain its competitive edge and continue to deliver strong returns to its investors. With its strong foundation in AI and commitment to innovation, HCLTech is likely to remain a leader in the Indian IT sector for years to come.

India’s top IT services companies, including Tata Consultancy Services (TCS), Infosys, and HCLTech, have reported significant one-time charges totaling ₹4,373 crore in the third quarter of fiscal 2026 due to the implementation of new labor codes. These charges have affected the companies’ profits and margins, despite continued revenue growth. The new labor codes, which came into effect in November 2025, consolidate and reform existing labor laws, introducing updated definitions and provisions related to employee benefits.

The codes require companies to redefine wages for statutory benefits, increase liabilities for gratuity and leave encashment, and recognize past service costs and enhanced employee benefit provisions in their accounts. As a result, the three IT giants had to make substantial one-time accounting provisions in their quarterly books. TCS booked a ₹2,128 crore exceptional expense, Infosys recognized a ₹1,289 crore hit, and HCLTech recorded ₹956 crore in one-time costs.

These non-recurring charges have materially affected net profits and operating metrics in Q3 FY26. Infosys’s net profit fell 2.2% year-on-year, and its operating margin dipped below previous levels. TCS and HCLTech also saw profit declines on a year-on-year basis, despite solid revenue growth. However, market analysts view these costs as accounting-driven one-off items rather than signs of weakened underlying demand.

The ongoing impact on margins is expected to be limited, with analysts noting that the charges will have a minimal effect on long-term profitability or demand trends. The implementation of the new labor codes marks a significant regulatory shift for Indian corporate India, especially for sectors with large employee bases. While the one-time charges may impact quarterly earnings headlines, the long-term view is that clearer labor law frameworks could support better workforce welfare and compliance reporting.

Industry commentators and brokerages say that these labor code provisions highlight the cost of regulatory compliance for labor-intensive sectors like IT services. Firms will need ongoing adjustments for payroll and benefit liabilities, but the one-time accounting hit should not materially alter long-term profitability or demand trends. Investors expect similar one-time charges at other technology firms that have yet to report results, suggesting this is a sector-wide phenomenon as companies align with the updated labor framework. Overall, the new labor codes are expected to have a limited impact on the long-term prospects of India’s IT services industry.

Infosys, India’s second-largest IT services company, is set to announce its Q3 results, and investors are eagerly waiting to see how the new labour codes will impact its net income. The company’s performance will be closely watched, especially after its peers, Tata Consultancy Services (TCS) and HCL Technologies, reported a decline in their net income due to the implementation of the new labour codes.

The new labour codes, which came into effect from October 1, 2020, have introduced significant changes to the way companies calculate employee benefits, such as provident fund, gratuity, and leave encashment. These changes are expected to increase the employee benefit expenses for IT companies, which could negatively impact their profitability.

TCS, the largest Indian IT company, reported a 7.1% decline in its net income in Q2, citing the impact of the new labour codes. HCL Technologies also reported a 3.4% decline in its net income, attributing it to the increased employee benefit expenses. Given this trend, investors are concerned that Infosys may also report a decline in its net income.

However, analysts believe that Infosys may be better positioned to absorb the impact of the new labour codes due to its strong revenue growth and improving operating margins. The company has been consistently delivering strong revenue growth, driven by its digital transformation services, and has been improving its operating margins through cost optimization and efficiency measures.

In Q2, Infosys reported a 4% year-on-year growth in revenue and a 200 basis points expansion in operating margins. The company’s digital revenue grew 25.4% year-on-year, driven by strong demand for cloud, data, and artificial intelligence services. Analysts expect Infosys to report a revenue growth of 3-4% in Q3, driven by the continued demand for digital services.

While the new labour codes may impact Infosys’ net income, the company’s strong revenue growth and improving operating margins are expected to cushion the blow. Analysts expect the company to report a net income decline of around 2-3% in Q3, which is relatively lower than the decline reported by TCS and HCL. Overall, Infosys’ Q3 results will be closely watched, and investors will be looking for signs of how the company is navigating the challenges posed by the new labour codes.

HCL Technologies, a leading Indian IT services company, has released its Q3 results, surpassing expectations and outperforming its rival, Tata Consultancy Services (TCS). The company’s strong performance has led to a revision in its guidance for the fiscal year.

Key Highlights of Q3 Results:

1. Revenue Growth: HCL Technologies reported a 15.5% year-over-year (YoY) growth in revenue, reaching $2.64 billion. This exceeds the company’s own guidance and outpaces TCS’s 8.4% YoY growth.
2. Net Income: Net income rose by 14.3% YoY to $394 million, beating analyst estimates.
3. Operating Margin: The company’s operating margin expanded to 17.2%, up from 16.4% in the same quarter last year.
4. Deal Wins: HCL Technologies secured 17 new deals with a total contract value of $1.1 billion, including a significant cloud transformation deal with a leading European bank.

Raised Guidance:

Based on its strong Q3 performance, HCL Technologies has raised its revenue growth guidance for the fiscal year to 16.5-17% from the previous range of 15-17%. The company also expects its operating margin to be at the higher end of its guided range of 16.5-17%.

Segment-Wise Performance:

1. IT Services: Revenue from IT services grew 16.1% YoY, driven by strong demand for digital transformation, cloud, and cybersecurity services.
2. Engineering and R&D Services: This segment saw a 14.1% YoY growth, driven by increased adoption of IoT, AI, and analytics.
3. Products and Platforms: Revenue from products and platforms grew 12.1% YoY, driven by the company’s Mode 2 and Mode 3 offerings.

Outlook:

HCL Technologies’ strong Q3 results and raised guidance reflect the company’s ability to execute on its strategy and capitalize on emerging trends in the IT services industry. The company’s focus on digital transformation, cloud, and cybersecurity is paying off, and its diversified portfolio of services is helping it to outperform its peers. With a strong deal pipeline and a healthy balance sheet, HCL Technologies is well-positioned for continued growth and expansion in the coming quarters.

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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.

The third quarter (Q3) results season is set to kick off next week, with several key BSE heavyweights scheduled to announce their earnings. The week of January 12-16 will be crucial for investors as some of the biggest companies in India will reveal their financial performance for the quarter ended December 2020.

Among the key companies that will announce their Q3 results are IT majors Tata Consultancy Services (TCS) and Infosys. These companies are expected to report strong earnings, driven by a surge in demand for digital transformation and cloud services. TCS is scheduled to announce its results on January 12, while Infosys will follow on January 13.

Reliance Industries, one of India’s largest conglomerates, will also announce its Q3 results on January 15. The company’s performance will be closely watched, particularly its telecom arm Jio, which has been a major driver of growth. Other key companies that will announce their results include HCL Technologies, another major IT player, and HDFC, one of India’s largest mortgage lenders.

ICICI Bank, one of India’s largest private sector banks, will also announce its Q3 results on January 16. The bank’s performance will be closely watched, particularly its asset quality and provisioning for bad loans. Other key companies that will announce their results during the week include Axis Bank, Kotak Mahindra Bank, and Bajaj Auto.

The Q3 results season will provide investors with a glimpse into the performance of India’s top companies and the overall state of the economy. The results will also set the tone for the markets in the coming weeks. Analysts expect the IT sector to perform well, driven by a strong demand for digital services, while the banking sector is expected to report a mixed performance due to the ongoing pandemic.

Overall, the week of January 12-16 will be a crucial one for investors, with several key companies announcing their Q3 results. The results will provide valuable insights into the performance of India’s top companies and the overall state of the economy, and will set the tone for the markets in the coming weeks. Investors will be closely watching the results, looking for signs of growth and recovery in the Indian economy.

The article discusses the performance of three Indian IT companies: Tata Consultancy Services (TCS), Infosys (Infy), and HCL Technologies (HCL Tech). It explores the use of protective put strategies and affordable market trading in the context of these companies.

The article begins by highlighting the growth of the Indian IT sector, with TCS, Infy, and HCL Tech being among the top players. It notes that these companies have been experiencing significant growth in recent years, driven by increasing demand for digital transformation and technology services.

The author then delves into the concept of protective put strategies, which involve buying put options to hedge against potential losses in a portfolio. This strategy can be particularly useful in times of market volatility, as it provides a level of protection against downward price movements.

In the context of TCS, Infy, and HCL Tech, the article analyzes the historical price data of these companies and suggests that a protective put strategy could have been effective in mitigating losses during periods of market downturn. For example, during the COVID-19 pandemic, the prices of these companies declined significantly, but a protective put strategy could have helped investors limit their losses.

The article also discusses the concept of affordable market trading, which refers to the practice of trading in smaller quantities or at lower frequencies to reduce costs. This approach can be particularly useful for individual investors or those with limited capital, as it allows them to participate in the market without incurring significant expenses.

In terms of the performance of TCS, Infy, and HCL Tech, the article notes that all three companies have been doing well in recent years, with TCS being the largest and most consistent performer. However, it also highlights the potential risks and challenges facing these companies, including intense competition, regulatory changes, and economic uncertainty.

Overall, the article suggests that a combination of protective put strategies and affordable market trading can be an effective approach for investors looking to navigate the complexities of the Indian IT sector. By using put options to hedge against potential losses and adopting a cost-effective trading approach, investors can potentially generate returns while minimizing their risk exposure. However, it is essential to conduct thorough research and analysis before making any investment decisions, as the performance of these companies can be impacted by a range of factors, including market trends, industry developments, and economic conditions.

The Indian IT industry, once a bastion of job security and growth, is facing a hiring freeze, leaving many techies worried about their job safety. Top IT companies such as TCS, HCL, and Cognizant are growing their revenues without adding new staff, a trend that is expected to continue in the coming months. This has resulted in a significant slowdown in hiring, with many companies putting their recruitment plans on hold.

According to industry experts, the IT sector has been witnessing a slowdown in hiring due to various factors, including automation, artificial intelligence, and changing business models. Many companies are now focusing on upskilling and reskilling their existing employees rather than hiring new ones. This has led to a surplus of skilled workers in the market, making it challenging for freshers and experienced professionals to find new job opportunities.

TCS, India’s largest IT services company, has been growing its revenues without adding new staff. The company’s headcount has remained stagnant over the past few quarters, despite a significant increase in revenue. HCL Technologies, another major IT player, has also slowed down its hiring process, with the company’s CEO, C Vijayakumar, stating that the company will focus on upskilling its existing employees rather than hiring new ones.

Cognizant, a US-based IT company with a significant presence in India, has also put its hiring plans on hold. The company has been focusing on automation and artificial intelligence to improve efficiency and reduce costs. This has resulted in a significant reduction in the company’s workforce, with many employees being laid off or asked to leave.

The hiring freeze in the IT sector has significant implications for job seekers, particularly freshers. Many engineering graduates and postgraduates are finding it challenging to find job opportunities, with some companies even deferring joining dates or cancelling job offers. The situation is expected to worsen in the coming months, with many companies expected to slow down their hiring processes further.

Overall, the IT industry’s hiring freeze has left many techies worried about their job safety. With companies focusing on automation, upskilling, and reskilling, the demand for new talent is decreasing. While this trend may be beneficial for companies in the short term, it has significant implications for the long-term growth and sustainability of the IT industry. As the industry continues to evolve, it is essential for companies to find a balance between automation and human talent to ensure sustainable growth and job creation.