The Indian IT sector started FY26 on a weak note. Mixed Q1 results from the top four players including TCS, Infosys, Wipro, and HCL Tech have made investors nervous. As a result, the Nifty IT index has been in the red for three weeks in a row.
Among the four big companies, Infosys delivered better-than-expected results, while TCS, Wipro, and HCL Tech disappointed.
In terms of constant currency (CC) revenue growth:
Infosys grew 3.8% YoY
HCL Tech grew 3.7% YoY
TCS saw a decline of 3.1%
Wipro declined 2.3%
Profit-wise, Infosys and Wipro reported 8.7% and 10% growth respectively. TCS posted a 6% rise, but HCL Tech’s profit fell by 9.7%.
Company | Hiring (Freshers) | Attrition (LTM) | Salary Hikes |
TCS | Plans to hire 42,000 freshers in FY26 | 13.8% (↑ from 13.3% in Q4) | No date announced yet; hikes are a priority |
Infosys | Plans to hire 20,000+ freshers in FY26 | 14.4% (↓ from 14.1% QoQ) | Wage hike already given recently |
HCL Tech | Hired 1,984 freshers in Q1 | 12.8% (stable YoY) | Hikes to begin from October 2025 |
Wipro | Plans to hire 10,000–12,000 freshers | 15.1% (↑ from 15.0% QoQ) | Last hike in Sept 2024; no new update |
Most IT firms are cautious about the future. Infosys and HCL Tech gave revenue growth guidance of 1–3% and 3–5% respectively. TCS and Wipro avoided clear guidance due to global demand uncertainty.
According to news reports, the worst might not be over yet. Hiring is now shifting toward AI, cybersecurity, and cloud skills, with demand for volume hiring going down. Firms are focusing more on skill-based recruitment rather than just numbers.
For investors, keeping an eye on key trends, results, and opportunities in the IT sector is important. And if you're looking to invest in IT stocks, opening a demat account can be your first step toward building a smart portfolio.
While the Indian IT sector is facing challenges, it is also realigning with emerging technologies like AI. Clients are cautious, deal closures are slow, and attrition is still a concern. However, companies like Infosys show promise with strong deal wins and selective hiring.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 25, 2025, 11:58 AM IST
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