IT Sector Q2 Results Preview: TCS, HCL, Infosys, Wipro To See Muted Quarter; Check Dates, Dividends, Bonus

The tech giants are prepping to declare their second quarterly earnings for FY27. The first one up is Tata Consultancy Services (TCS) later this week. However, analysts are of mixed opinion when it comes to tech players' Q2 results. Apart from financial reports, investors will also eye rewards like dividends and bonuses from Indian IT companies.

IT Sector: Q2 Results Dates

TCS will kickoff the Q2 earnings season with its financial report announcement scheduled on October 8. HCL Tech will follow on October 12. Another Tata Group-backed tech player, Tata Technologies will declare its earnings on October 14. While Wipro and Tech Mahindra will present their Q2 on October 15.

Further, L&T Technology Services will declare its Q2 on October 19, Coforge along with Infosys on October 23, and Kfin Tech on October 26.

Other IT players are yet to announce the dates of their Q2 earnings.

Security Code	Company	Q2 Results Date
532540	Tata Consultancy Services (TCS)	8-Oct-26
532281	HCL Technologies	12-Oct-26
544028	Tata Technologies	14-Oct-26
543933	Cyient DLM	15-Oct-26
532755	Tech Mahindra	15-Oct-26
507685	Wipro	15-Oct-26
540115	L&T Technology Services (LTTS)	19-Oct-26
532541	Coforge	23-Oct-26
500209	Infosys	23-Oct-26
543720	KFin Technologies	26-Oct-26
544172	Indegene	29-Oct-26
532668	Aurionpro Solutions	31-Oct-26
533146	D-Link (India)	31-Oct-26
543398	Latent View Analytics	31-Oct-26
517344	Mindteck (India)	4-Nov-26
526299	Mphasis	5-Nov-26

IT Sector Q2 Results Preview:

"Expect a muted quarter for large companies; better for mid-tier 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," analysts at Kotak Institutional Equities said in their note.

Among the tier-1 IT companies, HCL Technologies is likely to lead with organic qoq growth of 2% (2.4% yoy), while Infosys (1.1% qoq organic, 0.2% yoy) and TCS (0.5% qoq organic, 2.8% yoy) will lag. Among the hybrids, Tech Mahindra will likely report strong growth at 1.6% qoq and 6.6% yoy, but LTIMindtree will lag at 1.0% qoq and a decelerating 5% yoy.

In case of the mid-tiers, they are expected to outperform once again with an accelerating growth rate for Persistent Systems (+7% qoq, led by mega-deal ramp), Coforge (+4.5% qoq) and MPHL (3.5%). ERD companies will report lackluster growth, while Sagility leads among BPO peers.

Meanwhile, Pritesh Thakkar, Vice President, Research Analyst at PL Capital believes IT companies are expected to witness moderate improvement in Q2FY27, as macro headwinds from the Middle East conflict continue to weigh on client spending and decision-making. The Fed's recent 25bps rate hike, its first since July 2023, and the possibility of another hike later in CY26 are likely to keep IT spending decisions muted.

The analyst predicts AI traction remains healthy, but smaller-sized and shorter-tenure AI projects are yet to offset leakage in traditional services, limiting the pace of revenue growth.

IT Sector Q2 Results Preview: Revenue Growth

Thakkar expects median Tier I revenue growth of ~0.9.0% QoQ in CC terms, with growth partly aided by acquisitions, while Tier II companies are expected to outperform with ~2.7% QoQ growth, supported by deal ramp-ups and stronger conversion of recent wins.

In terms of company-wise, analysts at Choice Institutional Equities believe TCS and Infosys to remain relatively resilient at 0.0% and 1.5% QoQ, respectively, while Wipro (-0.7%) is likely to lag behind. HCL Tech (0.7%) should remain within guidance, while Tech Mahindra (1.2%) and LTM (1.6%) are expected to benefit from stronger deal wins and conversion.

In contrast, Tier-II players should continue to outperform, with 2.5-4.5% QoQ growth, supported by healthy deal momentum, particularly in BFSI. Coforge is likely to lead, aided by the Encora integration, reinforcing its stronger growth trajectory.

"We believe the BFSI vertical will remain the key growth driver across the sector, while geopolitical uncertainty and weak macros are anticipated to caution client decision-making," said analysts at Choice in a note.

Meanwhile, PL Capital's analyst expects Tier I companies to report 1% median QoQ CC growth, led by HCLT (2.4% QoQ CC growth, aided by acquisitions), while WPRO (0.5% QoQ CC decline) and TCS (0.4% QoQ CC growth) will be laggards. Within Tier II companies, COFORGE (11.3% QoQ CC growth) will benefit from 1 month contribution from the Encora acquisition, while PSYS (7.6% QoQ CC growth) will be driven by mega deal ramp-up. Among Tier II, KPIT is expected to decline for 2nd consecutive qtr., due to persistent weakness in the auto ER&D spending.

IT Sector Q2 Results Preview: EBIT Margins Growth

EBIT margins are expected to be weak on quarter-on-quarter basis as INR depreciation moderates compared to the previous two quarters.

On the margins front, Thakkar said, "we expect Tier I companies median EBIT margin to improve to 21.1%, +40 bps QoQ due to improved performance compared to Q1 while Tier II companies median EBIT margin is expected to remain flat at 15.1%. Within our coverage companies we expect EBIT margin movement between -120 bps to +100 bps."

Also, Kotak's note added that the translation of rupee depreciation into net profit may not be immediate for many companies due to cash-flow hedging-TechM, LTM, Coforge and Hexaware are likely to report meaningful forex losses.

IT Sector Q2 Results Preview: Guidance

Analysts at Kotak expect Infosys to cut guidance to 1.5-2.5% growth, down from 1.5-3%; this includes 170 bps contribution from acquisitions. Weak macro and AI deflation will play its part. While HCLT's organic growth guidance to move to 2-3% from 1-4% earlier. After the consolidation of the HPE telco business and Jaspersoft acquisition, these analysts expect HCLT's overall revenue growth guidance at 3-4%. Expect (-)2% to 0% revenue growth guidance from Wipro.

But analysts at Choice expect all companies to maintain their margin guidance. Cost-optimization remains the key lever for margin expansion, although gains are likely to be partly offset by currency headwinds and continued investments in AI capabilities.

IT Sector Q2 Results Preview: Dividends, Bonus

TCS will consider the declaration of the second interim dividend to the equity shareholders. Meanwhile, HCL Tech said it will consider the third interim dividend for FY27 on October 12th. On the other hand, Infosys will consider its first interim dividend of FY27.

Wipro has not made any proposal of dividends yet. Furthermore, L&T Technology will consider interim dividend for the half year ending September 30, 2026.

But the most awaited reward will be from Tech Mahindra. As per the regulatory filing, Tech Mahindra said on October 15, the board will consider both interim dividends and bonus shares.

IT Sector Q2 Preview: Tech Stocks Crash

As of October 6, 2026, the Nifty IT index has plunged nearly 9% on month-on-month performance and crashed by over 19% in a year. Majority of IT stocks have crashed in past 30 days. Infosys nosedived 11%, TCS plunged over 9%, Coforge dropped nearly 8%, Wipro tumbled nearly 9%, Tech Mahindra down over 6% and HCL Tech plummeted nearly 8%. The worst performers are Oracle and LTIMindtree, with 14% and 13% decline. Mphasis and Persistent are down 6% and 3% respectively.

"Despite the 27% YTD correction of Nifty IT, valuation remains at a premium as compared to global peers, limiting scope for a sustained re-rating until earnings visibility improves," analysts at Choice added.

They added that while companies are strengthening long-term positioning through AI, engineering and platform-led acquisitions, these investments are yet to translate into a meaningful near-term growth inflection.

Thereby, analysts estimate management commentary to remain constructive on the medium-term opportunity but measured on near-term demand. Choice's note said, "Any rally on the positive commentary is therefore likely to be tactical unless supported by improving discretionary spending, stronger large-deal conversion and AI-services revenue increasingly offsetting productivity-led deflation."

Which Tech Stocks To Buy? Here are recommendations from Choice.

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