Infosys, Wipro, Tech Mahindra — IT Stocks Under Pressure Ahead Of TCS Q3 Results

Growth for Indian IT companies is expected to be weighed down by seasonality and furloughs, with moderate revenue growth of 0.7% in constant currency terms, according to Jefferies.

Margins are likely to remain flattish, with mixed performance across companies, said Emkay. The rupee depreciation may provide some relief, jefferies said, but JM Financial sees cross-currency headwinds partially offsetting the benefits.

As analysts flag concerns, Moshe Katri, the managing director of equity research at Wedbush Securities, said Indian IT companies should not be grouped together, as those with a higher reliance on discretionary spending are likely to face challenges.

The third and fourth quarters are traditionally weaker for the IT sector, so attention will shift more to future guidance rather than just the results themselves, he said.

Investors will be keen to hear from management teams on their outlook for the spending environment and any insights into how it could impact performance moving forward, Katri told NDTV Profit.