IT Q2 Results Preview — Muted Growth Ahead For Tier-1 Firms; How Will TCS, Infosys & Other Large Caps Perform

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Q2 FY26 appears to be a status quo quarter for tier-1 IT services companies with no surprises or shocks, even as the overhang from direct tariff apprehensions and $100,000 fee imposition on H-1B visas dragged NIFTY IT by ~8%.

NIFTY IT now trades at a 10% premium to NIFTY vs its five-year average premium of 17%.

We expect the tier-1 companies to report revenue growth in the range of 0.5–1.5% QoQ CC, with HCLTech likely leading the pack.

For TCS and Wipro, this has been be an uneventful quarter. For Infosys, we expect 20 basis points contribution from inorganic streams in our 1.2% QoQ CC estimates.

We estimate Ebit margins, for our coverage, to remain largely unchanged QoQ on an average. However, Infosys may see some tailwinds from completed wage hikes, project Maximus and INR depreciation.

Key monitorables:

1. Change in guidance by Infosys/HCLTech,

2. H1-B visa cost impact,

3. Wage hike update (Wipro),

4. GCCs taking away market share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.