Following the release of financial results for the April-June quarter of fiscal year 2025-26 (Q1FY26), India’s top information technology (IT) companies will attract attention in today’s market session. As investors on D-Street contemplate on which IT stocks to buy, sell, or hold at this time, market analysts hold varied opinions about both Tata Consultancy Services (TCS) and HCL Technologies Ltd following their recent Q1FY26 earnings report.
Q1 Results
HCL Technologies announced on Monday, July 14, a 9.7% decline in its consolidated net profit for the June quarter, impacted by increased expenses and the one-time effect of a client’s bankruptcy. The company reported a net profit (attributable to the owners of the firm) of ₹4,257 crore during the same period last year, as stated in a regulatory filing. For the quarter in review, revenue from operations increased by 8.1%, reaching ₹30,349 crore, compared to ₹28,057 crore in Q1FY25.
HCL Tech share price closed down by 1.04% at ₹1,619.95 per share on the BSE on Monday. The financial results were disclosed following the end of trading hours.
On Thursday, July 10, TCS announced a 6% increase in its net profit for the June quarter, reaching ₹12,760 crore. In the same period last year, the Tata group firm reported a net profit of ₹12,040 crore.
The company’s revenue rose by 1.3% to ₹63,437 crore, compared to ₹62,613 crore during the same period last year, although it declined by 3% when measured on a constant currency basis.
According to a company statement, its operating profit margin improved by 0.30 percent quarter-over-quarter, standing at 24.5 percent for the April-June period.
HCL Tech vs TCS Q1 Results: Here’s what experts say
According to Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund, in the wake of Q1 FY26 earnings, TCS clearly emerges as the more compelling IT bet, backed by a superior margin profile, robust deal wins, and a steady profit trajectory. While HCL Tech continues to demonstrate long-term potential, near-term headwinds around margins and deal execution warrant a wait-and-watch approach before committing fresh capital.
“That said, both companies have shown remarkable resilience across decades of business cycles — navigating global shocks, tech shifts, and macro volatility — a testament to the enduring strength of India’s IT backbone,” added Gulati.
In the same vein, Vinit Bolinjkar, Head of Research at Ventura Securities, considers TCS to be a stronger choice because it managed to maintain its margins, and some of BSNL’s orders are expected to come in the next quarter. HCL Tech experienced a notable drop in margins.
