The Indian IT services sector will start the earnings season in September, starting with Tata Consultancy Services (TCS). The July-September quarter remained challenging, characterized by muted discretionary spending, elongated decision-making cycles, careful client sentiment amid macroeconomic uncertainty, and disruption of AI-driven technology shifts. The question environment has not improved or exacerbated. The IT sector Q2 results are expected to remain subdued after the first quarter was influenced by tariff-related uncertainty. The broader macro background remains weak, and is further weighed by the recent H1B visa money increase announced by US President Donald Trump. With no substantial change in operating conditions, analysts expect comments from IT businesses to remain careful. The tendency of firms that are better than big cap players is likely to continue. Nuvama institutional stocks expect its coverage universe to report constant growth in the QOQ growth in the vicinity of -0.5% to +6%. Motilal Oswal Financial Services (MOFSL) reflects this view, and note that clients, who struggle with macro and tariff uncertainty, are reluctant to commit significant budgets to new initiatives. MOFSL expects QOQ CC turnover growth of 0.3-2.4% for large CAPS, while the mid-capside is expected to be between -0.5% and 6.0%. For Q2FY26, total revenue for coverage universe is expected to grow 6.0% yoy, with Ebit and PAT likely to rise by 5.2% and 5.5% respectively (in INR terms). Here is a preview of the IT sector Q2 results: TCS Q2 -preview TCS, the largest exporter of the software services, is expected to report 2.1% QOQ growth in turnover to £ 64,738 in Q2FY26. In USD terms, it is estimated to rise by 0.2% QOQ to $ 7,433 million, according to Nuvama. The Indian Business of TCS is likely to remain flat, with the BSNL transaction completed in the first quarter. The net profit is expected to increase 2.3% qoq to £ 13,058 crore. It is estimated that Ebit will grow by 2.9% QOQ, expected that margins by 20 bps will expand to 24.7%, despite one month’s impact on the wage increase. Infosys Q2 preview Infosys’ turnover is expected to grow 1.8% QOQ in constant currency and 2.1% QOQ in USD terms, with a contribution of 10-15 BPS of acquisitions. Ebit margin is likely to improve by about 20 bps QOQ, aided by the leverage and currency benefits. Infosys is expected to retain its FY26 revenue growth of 1-3% cc yoy (including 0.4% inorganic) and margin training of 20-22%. HCL Technologies Q2 Preview HCl Tech is expected to produce 1.5% qoq revenue growth in CC terms and 1.7% QOQ in USD terms, led by products and platforms (+1.5% qoq) and services (+1.7% qoq). According to Nuvama, the EBIT margin will expand 70 BPS QOQ to 17% from 16.3%, as the restructuring costs are comfortable. HCL Technologies revenue is likely to rise by 3.5% QOQ to £ 31,396 crore. The net profit can grow by 11.3% qoq to £ 4.275 crore, while EBIT is estimated to increase 8.1% QOQ to £ 5.342 crore. Wipro Q2 -preview Wipro’s IT income from IT services is expected to grow 0.1% QOQ in CC terms and 0.2% QOQ in dollar terms, near the center of its lead. Margins are likely to contract 40 bps qoq to 16.9%. For Q3FY26, Wipro is expected to lead to 0–2% CC QOQ income growth, supported by the rise of the Phoenix deal. Tier-2 IT-Sector Q2 Results Preview Tier-2 IT businesses are expected to produce a stronger growth in the Q2, with Coforge leading the package at 6%QOQ in constant currency, followed by persistent systems (3.7%), Hexaware technology (3.2%), ltimindree (1.9%) and MPhasis (1.3%), according to Nuvama. Among ER & D players, growth is likely to remain modest. L&T Technology Services is expected to produce 1.5% QOQ growth, while Cyient can see a subdued 0.3% increase, which is weighed by weakness in the automatic vertical. In the Smallcap segment, FirstSource is expected to produce a healthy 2.2% growth in CC in CC. Birlasoft (-0.5%) and Zensar Technologies (-0.1%) are likely to be the only names reporting the successive declines this term. Nuvama is expected to be limited in the vicinity of -10 BPS to +30 BPS QOQ, Nuvama noted. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.
IT sector Q2 Results 2025 Trailer: Trump tariffs, poor macro to depreciate earnings; Midcap IT businesses to perform better
