The much-anticipated third-quarter earnings season for India's information technology sector is set to commence this week, with industry bellwethers Tata Consultancy Services (TCS) and HCLTech taking the lead. Brokerages are projecting a period of seasonal moderation but anticipate steady demand, with growth figures for large-cap firms hovering in a narrow band.
Earnings Calendar: Key Dates for Investors
The earnings rollout will begin on Monday, January 12, 2026, when the country's largest IT services provider, TCS, along with HCLTech, declare their financial results. This will be closely followed by Infosys announcing its numbers on Wednesday, January 14. Wipro will round off this initial phase by reporting its quarterly performance on Friday, January 16.
Analyst Expectations: Modest Quarter-on-Quarter Growth
Market analysts and brokerage firms have set their forecasts for the sector, predicting a phase of seasonal softness. The primary focus will be on constant currency (CC) revenue growth, which eliminates the impact of foreign exchange fluctuations. For the major IT companies, this key metric is expected to show a sequential increase in the range of 0.3 per cent to 2.3 per cent for the quarter ended December 2025.
This projected growth range indicates a cautious but stable outlook. While the quarter is traditionally slower due to holiday periods and reduced client activity in key Western markets, the underlying demand environment is seen as resilient. Brokerages suggest that deal pipelines remain healthy, supporting the steady growth forecast.
Broader Sector Outlook and Market Sentiment
The upcoming results will be scrutinized for commentary on client spending patterns, especially in crucial verticals like banking, financial services, and retail. Management guidance on margins, hiring trends, and the demand outlook for the coming quarters will be critical in shaping market sentiment for the entire IT index.
Investors will also watch for updates on:
- Progress in large deal wins and total contract value (TCV).
- The impact of macroeconomic headwinds in the US and European markets.
- Investments and growth in emerging technologies like artificial intelligence and cloud services.
The collective performance of these top-tier firms often sets the tone for the broader technology sector in the Indian stock market. As the reports unfold from January 12 onwards, they will provide a crucial health check on one of India's most significant export-oriented industries.
