TCS Vs Infosys Vs Wipro Vs HCLTech: What Q2 Results Of India's Large-Cap IT Majors Reveal — Here's A Snapshot
Despite global uncertainties, large Indian IT firms outperformed revenue expectations in Q2.
India’s top IT players TCS, Infosys, HCLTech, Wipro, and Tech Mahindra posted better-than-expected Q2FY26 performance, beating Street estimates on revenue and profitability.
Strong execution, disciplined cost control, and a rising focus on AI-led transformation helped the large-cap IT pack deliver resilience amid an uncertain global demand environment.
However, management commentaries suggest H2FY26 could remain soft, weighed by restructuring and slower ramp-ups in certain verticals.
Large-Cap IT Players Beat Revenue Estimates In Q2FY26
Despite muted discretionary tech spending, large Indian IT firms outperformed revenue expectations in Q2. Sequential growth was driven by steady deal flow in BFSI, manufacturing, and energy segments.
Infosys led the pack with robust topline growth, while TCS reported steady momentum across key verticals.
Analysts highlight that margin expansion and operational discipline supported the outperformance, even as global peers continued to face demand headwinds.
Cost Control And Strong Execution Drive EBIT Beat
Across the board, companies displayed improved operational efficiency. Tight cost management, utilisation gains, and reduced subcontracting expenses boosted EBIT margins.
TCS and HCLTech stood out for their execution discipline, reporting better-than-anticipated operating performance. While revenue acceleration remains gradual, margin beats across most firms suggest Indian IT continues to deliver profitability even in a low-growth cycle.
Companies Double Down on AI Commentary
AI was a recurring theme across all management commentaries this quarter.
TCS announced a $1 billion-per-150 MW sovereign AI data center project, company is moving into a newer space. The will have impact on ROCE give the investment in assets for data center
Wipro launches Wipro Intelligence, to scale & help the clients with in AI-first world
HCLTech became the first Indian IT company to report standalone AI revenue, exceeding $100 million in Q2, marking a significant milestone in monetizing AI services.
Tech Mahindra was identified as a key partner in India’s AI Mission, signaling its strategic pivot toward AI-led solutions.
This unified industry focus underscores how large-cap IT firms are positioning AI not merely as a technological add-on but as a core driver of next-generation growth.
Employees Addition in Q2: Barring TCS A Positive Turnaround Seen
Headcount trends showed a positive turnaround, suggesting renewed business confidence and pipeline visibility. Infosys added the highest number of employees this quarter (8,203), and TCS saw a net reduction of 19,755.
H2 Outlook: Seasonal Weakness and Cost Pressures Ahead
While Q2 results were encouraging, most management commentaries indicated a cautious view for H2FY26. The second half of the fiscal year typically sees softer performance due to furloughs and seasonality.
Additionally, ongoing ramp-up delays, restructuring costs, and wage revisions could exert near-term margin pressure.
Analysts suggest that while AI-driven deals and operational efficiency will offer medium-term tailwinds, near-term growth may remain moderate.
Outlook
In summary, Q2FY26 reaffirmed the resilience of India’s large IT players. Revenue beats, margin expansion, and a clear AI-driven growth narrative dominated the quarter. With every major firm investing in generative AI capabilities and platforms, the sector appears well-positioned to capture the next wave of digital transformation, even as it navigates short-term macro and cost challenges.
