IT Sector Q1 Results Preview: Will TCS, Wipro, Infosys, HCL Escape West Asia War Impact? Dividends Ahead

Indian IT players are likely to witness a weaker to softer Q1 for FY27. Volatile macro conditions, geopolitical issues, elevated AI-led productivity pass-throughs and continued pressure on discretionary spending will impact the performance. Experts suggest that large-cap or tier-1 tech companies such as TCS, Wipro, Tech Mahindra, Infosys and HCL Technologies could face growth challenges, while tier-2 or mid-to-small-scale IT companies like Persistent Systems, Coforge, and Mphasis would likely lead in revenue growth. Apart from Q1 earnings, investors should watch for dividend rewards, management commentary, deal wins and revisions to FY27 guidance after Q1.

IT Sector Q1 Results Preview: Revenue Growth

"We expect Top-6 large IT companies to report CC US$ consolidated Sales decline of 1.1% to growth of 1.7% qoq with adverse impact from cross-currency headwinds worth flat to 30bps qoq on US$ Sales growth," analysts of Yes Securities said in their preview note.

Conversely, mid-cap tech players are expected to report healthy sales performance, with Mphasis, Persistent and eClerx recording 2.4% to 3.1% qoq growth in constant currency (CC) sales.

Under tier-1, analysts at Kotak Institutional Equities believe HCLT's services growth should land at -1% and Wipro's at -1.1%. TCS will likely report flat revenues, while Infosys will likely underwhelm at 1% organic growth qoq. Tech Mahindra will likely report a strong growth of 1% qoq.

Key factors impacting growth include the West Asia crisis, which will have a marginal direct and indirect impact, and AI deflation, which is starting to flow through.

IT Sector Q1 Results Preview: EBIT Growth

"We expect margin across Tier I IT companies to remain broadly stable, supported by AI-led internal productivity gains, favourable FX movements and ongoing cost optimization initiatives, offset by continued investments in AI capabilities," said analysts at Choice Institutional Equities in a note.

These analysts believe Tech Mahindra is likely to outperform its peers with an expansion of 25 basis points QoQ in margins driven by delivery efficiency and Project Fortius. Meanwhile, LTIMindtree could log a modest 10 basis points gain in margins, supported by forex gains and operational efficiency despite the wage hike.

However, wage revisions are likely to dampen TCS and Wipro's EBIT margins, but INR depreciation could offer some support.

Along similar lines, analysts at Emkay Global in a note, said, "We expect margin performance of our coverage companies to be a mixed bag in 1Q, influenced by factors such as a weak rupee, wage hikes (TCS, WPRO, LTM, ECLX), business-related seasonality, and M&As."

Also, Tier-1 players, except TCS and WPRO, are expected to log margin expansion sequentially. Mid-cap companies may see a wider margin fluctuation, ranging from -100 bps to +40 bps QoQ, except BSOFT, which would witness a decline of 310 bps due to the absence of one-offs. Net hiring is likely to be muted.

IT Sector Q1 Results Preview: FY27 Guidance In Focus

For the upcoming guidance, analysts at JM Financial forecast Infosys to revise down the upper end of the FY27 revenue guidance: LTL guidance at 1.5% to 3% cc YoY versus 1.5% to 3.5% earlier. In addition, Infosys will likely include the ~1.2% contribution from Optimum in FY27 that closed during the quarter. FY27 margin guidance to be unchanged at 20% to 22%.

Wipro could announce Q2FY27 revenue growth guidance in the range of -1% to +1% QoQ in constant currency. Meanwhile, HCL Tech may keep its FY27 guidance unchanged at 1.5% to 4.5% cc YoY. Also, FY27 margin guidance of 17.5% to 18.5% is to be unchanged.

Analysts at Equirus expect Infosys to guide for 2.8-4.3% CC growth in US$ Sales in FY27E on a consolidated basis. Wipro is to guide for a CC US$ IT Services dip of 2.0% to flat growth qoq for 2QFY27E.

IT Sector Q1 Results Preview: Key Factors To Watch Out

A list of key factors to watch out during Q1FY27 results of Indian IT companies are mentioned below, as per Emkay Global experts:

IT Sector Q1 Results 2026 Dates

The Q1 result season for FY27 will commence with India's largest tech giant, Tata Consultancy Services (TCS), which is scheduled to declare its Q1FY27 quarterly earnings report on July 9. This will be followed by LTIMindtree on July 11th, HCL Technologies on July 13th, and L&T Technology Services on July 14th.

Later on, Tech Mahindra is scheduled to declare its earnings on July 16, while Tata Technologies is to announce its Q1 report on July 17. Further, the second-largest IT player, Infosys will declare its result on July 23rd, which will be followed by Mphasis on the same day. Also, Coforge is scheduled on July 27th.

Other companies are to declare Q1 result dates soon.

TCS Vs HCL Tech Vs Infosys Vs Wipro: Who Is Going To Reward Dividends?

Except Infosys and Wipro, both TCS and HCL Tech are planning to reward investors with an interim dividend for FY27. The decision will be made during the board meeting of Q1 results. Nonetheless, investors should watch out for any corporate rewards from Infosys and Wipro as well.

For the financial year 2025-26, the Tata Group's flagship paid up to Rs 110 dividend per share. The last dividend payout was of Rs 31 per share, which was the fifth dividend of 2025-26 fiscal.

In case of HCL Tech, the Shiv Nadar-backed giant earlier declared first interim dividend of Rs 24 per share for FY27, whose record date was April 5, 2026 and payment date was May 5, 2026. HCL Tech has a solid history of delivering hefty dividends to its investors. In the fiscal FY26, the company delivered as much as Rs 60 dividend per share.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.