Indian IT Sector Gears Up for June Quarter Earnings: TCS Set to Release Q1FY26 Earning on July 10

The Indian IT sector is set to kick off the June quarter earnings season for large-cap stocks, with Tata Consultancy Services (TCS) slated to announce its results on Thursday, July 10. Analysts anticipate a steady quarter overall, though the typical robust performance seen in Q1 may be somewhat muted due to softness in tariff-sensitive verticals and a largely unchanged demand landscape.

As per the CNBC-TV18 poll, there will be a mixed bag of results, with large-cap IT firms expected to show some weakness, while mid-cap companies appear poised to drive growth.

Revenue Outlook and Sector Sentiment

According to the poll, four out of five major IT firms may report a sequential revenue dip. Management commentary across companies is expected to underscore a stable macroeconomic backdrop—neither showing clear signs of improvement nor further deterioration.

Q1 Revenue Growth Forecast (Constant Currency)

Among the Tier-1 players, Infosys is projected to outperform peers with a modest 1.5% quarter-on-quarter revenue growth in constant currency terms, buoyed by seasonal factors and a weak Q4FY25 base.

In contrast, TCS, Wipro, HCL Technologies, and Tech Mahindra are forecast to post sequential revenue declines of approximately 1.4%, 2%, 1.1%, and 0.7% respectively, as per the CNBC-TV18 survey.

Guidance Updates

Infosys may revise its revenue growth guidance upward from 0-3% to somewhere between 1-3% or even 1.5-3.5%, partly driven by a roughly 50 basis point contribution from recent acquisitions.

Similarly, HCL Technologies might raise the lower end of its guidance band from 2-5% to 3-5%.

Overall, management teams are expected to maintain a cautious tone, noting that demand conditions remain steady but have yet to show significant improvement.

Also Read: Tata Motors Shares in Focus: JLR Reports a Dip in Q1 FY26 Sales

Company-Specific Expectations

• TCS: Anticipated to report a revenue decline in constant currency terms, largely due to the ramp-down of the BSNL deal. However, EBIT margins are expected to tick up slightly by 10 basis points quarter-on-quarter.
• Infosys: Expected to post 1.5% sequential revenue growth in constant currency, driven by strength in financial services and bolstered by consolidation efforts involving MRE Consulting and Missing Link. EBIT margin is likely to improve by 25 basis points sequentially.
• HCL Technologies: Forecast to report a 1.1% revenue decline in constant currency terms, but benefiting from cross-currency tailwinds of about 200 basis points. EBIT margins may contract by 70 basis points quarter-on-quarter.
• Wipro: Expected to see a 2% sequential revenue dip within its guided range of -1.5% to -3.5%. EBIT margins are predicted to remain flat sequentially.

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