IT Sector Q4 Results Preview: Muted Quarter Seen, FY27 Guidance Key; TCS, Infosys, Wipro, HCL Q4 Results Dates

The Indian IT sector is expected to witness muted fourth quarterly earnings for FY26. However, due to sharp depreciation in the Indian rupee against US dollar, the majority of tech companies are expected to report double-digit earnings growth on a year-on-year basis. Notably, FY27 guidance will be keenly watched, which appears amidst an uncertain global environment due to the ongoing Middle East conflict. Some of the tech companies may reward dividends as well.

IT Sector: Q4FY26 To Be Muted

"We expect muted 4QFY26 revenue growth across many companies in the sector, although the yoy growth profile should improve for several companies," said analysts at Kotak Institutional Equities in their preview report.

The fourth quarter is expected to benefit from the absence of furloughs, especially in BFSI and retail segments. However, the gains could be limited due to lower number of working days. Overall, the financial sector is expected to drive growth in IT services.

That being said, on the top-line front, revenue growth is likely to range from 0.5% to 1.5% in Tier-1 IT companies such as TCS, Infosys, HCL Tech and Wipro. While the Tier-2 companies like LTIMindtree, LTTS, Coforge, Persistent, Mphasis, and Happiest Minds among others, are seen to report better growth than Tier-1 companies.

IT Sector Q4 Results Preview: Revenue Growth

Analysts at Kotak said, "We expect TCS to lead revenue growth among Tier-1 companies, while Persistent will lead the charge among mid-tier companies."

Meanwhile, analysts at Centrum predict revenue growth in the range of (0.5%) to +1.2% QoQ in USD terms for Tier 1 IT companies: TCS: 1.2%; Infosys: 0.2%; HCL Tech: (0.5%); Wipro: 1.0%; and Tech Mahindra: (0.1%).

For Tier-2 companies, analysts at Centrum expect revenue growth to be 1.3% to 3.4% QoQ in USD terms; LTIM: 1.8%; LTTS: (1.3%); Coforge: 1.7% to 3.4%; Mphasis: 2.7%; & Happiest Minds: 1.7%.

Overall, TCS (among Tier 1) and Persistent (among Tier 2) are expected to report the highest sequential revenue growth.

IT Sector Q4 Results Preview: EBIT Margins

EBIT margins are estimated to be steady, driven by a 3% to 4% depreciation of Indian rupees against USD. This is despite the expectation of a muted quarter.

"Companies continue to focus on improving employee pyramid, optimizing sub-contracting costs, increasing utilization and other efficiency measures to drive margin improvement even as they increase investment and plan acquisitions to drive capabilities in AI," analysts at Centrum said.

Explaining in detail, analysts at Kotak are predicting 40-320 bps yoy increase in EBIT margin among top-6 IT helped by 6.5% depreciation against USD.

They said, " Wipro and HCLT would report ~20-30 bps yoy declines. On a sequential basis, rupee has depreciated by 3.5%. We expect stable margins to increasing margins. Translation of rupee depreciation will vary depending on magnitude of hedging."

However, large companies are seen to have limited hedging to the immediate depreciation of currency into their earnings. Kotak analysts said, "A few
companies such as LTM, LTTS, Coforge, Persistent and Hexaware have hedges
varying from 12 months to three years and will report hedge losses."

IT Sector Q4 Results: FY27 Key Guidance:

All experts believe the FY27 guidance will be crucial. In Kotak's opinion, two factors will drive the FY27 outlook for tech companies. These are:

First, elevated geopolitical risk from the Iran war adds uncertainty to global macro conditions and enterprise spending visibility. Second, GenAI-driven productivity programs are increasingly deflationary in nature.

"These factors are likely to cap headline growth guidance despite reasonable deal pipeline. Our base-case expectations assume some deescalation in geopolitical conditions; a prolonged or intensifying conflict would pose downside risks to both demand assumptions," said analysts.

Accordingly, Infosys and HCL Technologies are expected to give 3-5% revenue growth guidance for FY27. For Infosys, a 75 bps jump in guidance will be due to the Versent acquisition, noting that the company's management predicts the deal will close by the end of this fiscal year. In the case of HCL, the revenue guidance will be driven by large deal ramp-ups and services mix.

Additionally, Wipro could be (-)2 to 0% revenue growth for the June 2026 quarter, indicating share losses, delayed ramp up of large deals and pricing pressure.

What To Expect In IT Sector's Q4 Earnings?

According to Centrum analysts, Management commentary on the demand environment, FY27E revenue and margin guidance, the offshoring trend, hiring plans, H-1B visa issues and the momentum in deal booking would be the key things to watch out for.

"We expect Infosys to provide revenue growth guidance for FY27E at 3-6% with EBIT margin guidance of 20-22%. For Wipro, we expect the management to guide for revenue growth of 0% to +2% for Q1FY27E. HCL Tech is expected to provide organic revenue growth guidance of 4.0-6.0% for FY27E with EBIT margin guidance of 17-18%. We expect incrementally improving trend in FY27E, led by a low base of FY26, growing traction in Gen AI related deals, focus on operational efficiency and a pick-up in the ramp-up of recently signed deals," they added.

Also, select Tier 2 IT companies are expected to outperform Tier 1 companies in the quarter.

IT Sector Q4 Results Date: TCS, Infosys, Wipro, More

April 9, 2026: The earnings will begin with Tata Consultancy Services (TCS) which is the largest Indian tech player in terms of market cap. TCS will declare its result on April 9.

April 16: Wipro follows close with its Q4 results date fixed on April 16.

April 21: HCL Technologies and Persistent Systems will declare its earnings on April 21.

April 22: Mahindra Group-backed Tech Mahindra will report Q4 results on April 22, which is likely to be the only IT result that day.

April 23: TCS, Wipro and HCL's immediate rival, Infosys, will declare its earnings on April 23, a little later in the month than compared to its usual pattern. Last year, the company declared its Q4FY25 results on April 17.

April 29: Kfin Tech and Mphasis are scheduled to declare their Q4 results on April 29.

May 5: Coforge is scheduled to report its quarterly and year-ended FY26 earnings card on this day.

More IT companies are likely to declare their Q4 results date soon.

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