IT stocks Q2 results analysis: India’s largest IT companies are showing signs of recovery, with most delivering stronger profits and deal bookings while some struggle with sluggish client spending and pressure on revenue growth.
The September quarter (Q2FY27) results of Tata Consultancy Services (TCS), Infosys, Wipro, HCLTech and Tech Mahindra reveal a widening gap in performance, particularly in constant-currency growth, artificial intelligence (AI) monetisation and future revenue visibility.
While Tech Mahindra led profit and revenue growth, HCLTech stood out for raising its growth guidance, Infosys announced the highest interim dividend, and TCS retained its lead in deal bookings and AI revenue scale. Wipro, meanwhile, faced pressure on profitability and new business wins.
Net profit: Tech Mahindra emerged as the strongest performer in year-on-year profit growth, with net profit surging 32.7% to ₹1,586 crore. HCLTech followed with a 21.2% increase to ₹5,132 crore, its highest-ever quarterly net income. TCS reported a 15% rise to ₹13,884 crore, while Infosys posted a more modest 6% increase to ₹7,823 crore. However, Wipro's consolidated net profit declined 1.4% to ₹3,200.6 crore, making it the only company among the four to report a year-on-year profit decline.
Revenue growth: Tech Mahindra also led year-on-year revenue growth, with consolidated revenue increasing 15.6% to ₹16,180 crore. HCLTech recorded an 11.52% rise to ₹35,620 crore, narrowly ahead of Infosys, which reported an 11% increase to ₹49,244 crore. Meanwhile, TCS revenue grew 11.2% to ₹73,188 crore, the highest in absolute terms among the five companies. Wipro's gross revenue rose 9.1% to ₹24,752.7 crore, although its core IT services business continued to experience muted growth.