Q3 Preview: TCS Vs Infosys Vs Wipro Vs HCLTech — What To Expect On Guidance, Attrition And More

India’s top IT services companies are expected to deliver a mixed December-quarter performance, with seasonal headwinds still evident but deal execution, margin levers and guidance commentary driving differentiation between Tata Consultancy Services, Infosys, Wipro and HCLTech.

Bloomberg estimates point to modest sequential revenue growth across the large-cap IT pack in Q3, alongside improvement in operating profit for some players. However, the estimates also highlight contrasting trends beneath the surface, including pressure on constant-currency growth at Tata Consultancy Services, improving margin profiles at HCLTech, and a more subdued profit trajectory at Wipro and Infosys.

Workforce metrics such as attrition and headcount, along with dividend expectations at select companies, are expected to be closely tracked.

For TCS, Bloomberg estimates suggest headline growth is masking continued pressure in constant-currency terms, reflecting the lingering impact of the BSNL ramp-down. Attrition is expected to remain low, and headcount broadly stable, indicating limited near-term hiring appetite as the company manages wage hikes and restructuring-related costs.

At HCLTech, estimates point to stronger sequential growth relative to peers, underpinned by seasonal strength in the products and platforms business. Margins are expected to expand despite wage hikes, and the Street is factoring in a dividend announcement, placing shareholder returns alongside guidance updates in focus.

For Infosys, Bloomberg estimates suggest a steady quarter, with limited movement in profit but an improvement in constant-currency revenue growth. Headcount is expected to remain stable, reinforcing the view that the company is prioritising execution and margin discipline over expansion.

At Wipro, estimates indicate a sequential pickup in revenue and operating profit, aided by inorganic contribution, though margin movement is expected to remain constrained.

Headcount is forecast to stay largely unchanged, while expectations of a dividend keep capital return on the agenda.

Analysts broadly agree that the December quarter remains seasonally weak due to fewer billing days, but note that delays and deferrals have eased compared with previous years. According to Investec, Tier-1 IT firms are likely to post sequential growth of 0.8%–2.4%, with HCLTech and Wipro among those expected to perform relatively better. The brokerage also expects the lower end of guidance to be raised at Infosys and HCLTech, supported by stronger deal pipelines and momentum in artificial intelligence-led engagements.

Jefferies expects aggregate growth across its coverage to moderate, with margins supported by currency movements but partly offset by furloughs. Focus areas remain calendar year 2026 budgets and demand visibility, as discretionary spending recovery remains uneven.

UBS maintains a cautious stance on the sector, noting that discretionary demand has yet to show a clear recovery, though early signs of stabilisation are emerging. The brokerage remains positive on Infosys and HCLTech among large caps, while favouring select mid-tier companies over the broader sector.

Nuvama expects a stable quarter despite seasonality, with most companies delivering muted but positive sequential growth driven by deal ramp-ups. It sees limited change in macro conditions, suggesting management commentary is likely to remain similar to the previous quarter, while maintaining a positive medium- to long-term view on the sector.