IT sector Q2 FY27 preview: India’s leading IT services companies are heading into another weak earnings season, with persistent macroeconomic uncertainty and AI-led productivity gains continuing to put pressure on demand.
Brokerage firm Kotak Institutional Equities believes that demand conditions have neither improved nor deteriorated since the June 2026 quarter and therefore another muted quarter for large companies is expected, with HCLT being the notable exception.
“We expect muted growth for tier 1 IT companies in a seasonally strong quarter. AI deflation and, to a lesser extent, weaker macro will contribute to weak growth,” the firm said in a note.
According to the brokerage firm, among the large IT companies, HCLTech is expected to post the strongest organic growth, with revenue likely to rise 2% quarter-on-quarter (QoQ) and 2.4% year-on-year (YoY). Infosys is expected to grow 1.1% QoQ and 0.2% YoY, while TCS may see slower growth of 0.5% QoQ and 2.8% YoY.
Among mid-sized and hybrid IT companies, Tech Mahindra is expected to perform well, with growth of 1.6% QoQ and 6.6% YoY. LTIMindtree (LTM) is likely to grow 1% QoQ, while its YoY growth may slow to around 5%, it added.
TCS Q2 results FY27 date
TCS is scheduled to announce its second-quarter FY27 results in October. In an exchange filing dated September 22, the IT major said its Board of Directors will meet on Thursday, October 8, 2026, to approve and take on record the audited standalone and consolidated interim financial results for the quarter ended September 30, 2026.
The board will also consider a proposal to declare an interim dividend for the company’s equity shareholders.
Infosys Q2 results FY27 date
Infosys’ board of directors said that the IT major will release its July-September quarter (Q2) results for FY27 on October 23, 2026.
“This is to inform you that a meeting of the board of directors of the company will be held on Thursday and Friday, October 22 and 23, 2026, inter alia, to approve and take on record the audited consolidated financial results of the company and its subsidiaries for the quarter and half year ending September 30, 2026,” the company said in the filing.
Here’s company-wise Q1FY27 preview of Tier 1 companies –
Tata Consultancy Services
The brokerage firm forecasts modest 0.5% revenue growth, driven by the international business. It further anticipates a 100 bps year-on-year (YoY) margin decline YoY and stable quarter-to-quarter (qoq) margin.
“The yoy decline reflects wage revisions, the impact of acquisitions, and ongoing pricing pressure. EBIT margins typically expand in the quarter following annual wage hikes, supporting sequential stability. We expect TCV of US$10-11 bn, growth of ~5% yoy, thanks to the Porsche mega-deal,” it said.
Infosys
Kotak forecast organic c/c revenue growth of 1.1%. About 50 bps of growth is due to the reversal of a headwind seen in the previous quarter. Underlying organic growth remains modest, reflecting AIled deflation and a weak demand environment.
“We expect stable margins. There are several moving parts, with a ~50 bps headwind from the swing in provision for post-sales client support offset by the absence of the ~50 bps revenue reversal headwind seen in the previous quarter. Benefits from rupee depreciation are likely to be offset by weaker revenue growth. We expect a large deal TCV of US$3 bn, stable on yoy comparison. We expect Infosys to cut FY2027E revenue growth guidance to 1.5-2.5%. The revised guidance implies -0.7-0.6% CQGR in 3QFY27-4QFY27E. In addition to the usual seasonal weakness in 4Q,” it said.
Wipro
Kotak anticipates Wipro to report a revenue decline of 1% QoQ and estimates include ~80 bps contribution from the AlphaNet acquisition and full quarter consolidation of the Mindsprint acquisition.
On an organic basis, it further expects a revenue decline of 1.8% due to weak macro, pricing pressure and share loss.
“We expect yoy decline in margins due to weak growth and upfront costs in lower-margin deals. Margins should be stable qoq. We expect revenue guidance of -2 to 0% growth. Continued weakness in the external environment and AI deflation will feed into weak guidance. The December quarter is also seasonally weak,” the firm said.
HCL Tech
The brokerage firm believes that HCL Tech organic c/c revenue growth is likely to be 2% qoq, led by the ramp-up of Guardian Life deal and seasonal strength. The acquisition of HPE’s Telco Solutions business and Jaspersoft will contribute 110 bps to revenues.
It further anticipates stable EBIT margin despite rupee depreciation. Benefits from rupee depreciation will be offset by margin dilution from acquisition.
“We expect HCLT to increase revenue growth guidance to 3-4% from 1-4% earlier. The revised guidance includes 100 bps from the Jaspersoft and HPE Telco Solutions business acquisitions. Organic c/c revenue growth guidance will be 2-3%, or 2.5% at the midpoint, broadly unchanged from the earlier guidance. The hurdle rate to achieve the lower end and upper end of guidance stands at 2.5-3.8% during 3QFY27- 4QFY27E. We expect HCLT to retain 17.5-18.5% EBIT margin guidance band though margins could be toward the lower end,” it added.
Tech Mahindra
For Tech Mahindra, the brokerage firm forecastes 1.6% qoq growth driven by the contribution from the Orange deal and the ramp-up of strong deal wins of the earlier quarter. This will be partly offset by a decline in Pininfarina revenues after a large program was delivered in 1Q.
“We expect steady EBIT margins, as the benefit of rupee depreciation and efficiencies is offset by an 80 bps headwind from wage revision. We expect a forex loss of US$25 mn for the quarter. We forecast net new deal wins around US$0.9 bn, lower than the preceding three quarters but a healthy 10% growth on yoy comparison,” the brokerage firm said in a note.
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