IT results may underline resilience, not recovery

LARGE-CAP DOMESTIC IT services companies are expected to post modest sequential revenue growth of 0.3-2.2% in the December quarter, with results likely to underline stability rather than a clear acceleration in demand, according to analysts.

- URVI MALVANIA

The quarter's performance is expected to be driven largely by deal ramp-ups and company-specific factors, rather than any broad-based improvement in client spending. Analysts at ICICI Securities said they expect constant currency growth of 0.3-2.2% quarter-on-quarter for the top IT companies, supported by resilient BFSI execution and the ramp-up of large deal wins, but partly offset by seasonal furloughs.

Among the large caps, HCLTech is expected to outperform peers in Q3FY26, aided by seasonality in its software products business. Wipro is likely to see benefits from the ramp-up of large vendor consolidation deals and early contributions from recent acquisitions. In contrast, TCS and Infosys are expected to report softer sequential growth, as furlough-related headwinds and fewer working days weigh on near-term momentum despite steady execution in core verticals.