Infosys, India’s second-largest IT services company, closed the Q1FY26 earnings season for Tier-1 IT firms on a strong note. The company posted a 9 percent year-on-year (YoY) rise in net profit to ₹6,921 crore for the June 2025 quarter, up from ₹6,368 crore in the same period last year. Revenue from operations grew 7.5 percent YoY to ₹42,279 crore, supported by strong deal momentum and consistent demand for digital transformation services across global markets.
In a key development, Infosys revised its full-year revenue guidance for FY26, raising the lower end of its constant currency growth forecast to 1 percent from the earlier 0 percent. The upper end of the range remains unchanged at 3 percent.
Now that all four major Indian IT firms—Infosys, TCS, HCL Tech, and Wipro—have reported their Q1FY26 earnings, investors are assessing which stock presents the most promising opportunity going forward. The sector has faced macro headwinds in recent quarters, from subdued enterprise tech spending to margin pressures. While a broad-based recovery remains uncertain, stock-specific opportunities are taking shape, particularly from a technical and fundamental perspective.
Here’s what top market experts have to say:
Vishnu Kant Upadhyay, AVP – Research & Advisory at Master Capital Services, believes Infosys stands out among its peers. He pointed to its balanced performance, upbeat guidance, and leadership in enterprise AI adoption. Infosys retained its operating margin guidance at 20–22 percent and revised its revenue growth outlook upward, signaling confidence in future growth.
While TCS remains a strong performer with high margins, Upadhyay noted that its revenue growth has been relatively sluggish. HCL Technologies is dealing with profitability pressures, and Wipro needs to further stabilise execution despite encouraging deal wins. As such, Infosys, with its robust fundamentals and future-readiness, remains the top pick.
Anshul Jain, Head of Research at Lakshmishree Investment, also pointed out that Infosys has outperformed peers amid sector-wide weakness. While many IT stocks saw steep corrections post-earnings, Infosys showed notable relative strength.
According to Jain, the ₹1,550–1,575 range presents a favourable entry point for investors looking to accumulate. He sees Infosys as a defensive pick with strong support levels and a good risk-reward profile.
In contrast, Siddharth Tyagi, Research Analyst at INVasset PMS, sees Wipro as the most attractive candidate, particularly from a technical and valuation standpoint. The stock is trading in a broad consolidation zone and may be poised for a breakout, with the potential to revisit its all-time high.
On the fundamentals front, Wipro’s leadership reshuffle and structural changes have started bearing fruit. Its recent deal wins and renewed focus on client retention suggest that the company could be entering a turnaround phase. He warned, however, that Infosys may be constrained by risks such as muted deal conversions and vertical-specific volatility (especially BFSI and telecom).
TCS, he added, continues to display a bearish price structure and offers limited upside in the near term unless macro demand visibility improves. HCL Technologies, too, appears technically weak despite its sound business segments in ER&D and infrastructure.
Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, offered a more conservative view. She believes TCS remains the best long-term bet given its high-margin profile, strong balance sheet, and consistent dividends. TCS reported modest revenue growth of 1.3 percent YoY in Q1, but its operating margin of 24.5 percent and net margin of 20.1 percent were well above industry averages.
The company’s focus on AI, analytics, and cybersecurity, along with key partnerships and platform launches, makes it an ideal pick for risk-averse investors looking for steady compounding. She also appreciated Infosys for its balanced delivery and large deal momentum, citing its $3.8 billion deal wins in Q1 as a key strength. HCL Tech and Wipro, in her view, remain speculative bets with higher associated risks.
Overall, Infosys has emerged as a strong performer this quarter, backed by resilient margins, strong large-deal wins, and a cautiously optimistic revenue guidance revision. While TCS remains a favourite among conservative investors, Infosys currently appeals more to those seeking a mix of growth and stability.
For more aggressive investors, Wipro may offer upside potential as a turnaround story, while HCL Tech could be worth watching if margin headwinds begin to ease. Ultimately, stock selection within the IT space should align with the investor’s risk appetite and time horizon. Infosys, by most accounts, continues to be the best-positioned IT stock for those looking for a steady compounder in an evolving tech landscape.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
