Will Indian IT stocks face another choppy week after weak guidance from top firms?

Out of the top five Indian-headquartered IT services and consulting companies, three— Tata Consultancy Services , Infosys , and Wipro —announced their results last week. Post-announcement, their American Depositary Receipts (ADRs) listed on Nasdaq, as well as shares listed on Indian stock exchanges, took a beating, signalling weakened investor sentiment in IT stocks.

As large caps signal business uncertainty owing to US trade policies and their clients' current unwillingness to spend, Infosys has given a 0-3% revenue growth forecast for fiscal FY26. With HCLTech —the only other IT company that provides annual guidance—set to announce its results on the 22nd, followed by LTIMindtree on the 23rd and TechM on the 24th of this month, IT investors could be in for a week of volatility as they brace for the full-stack impact of top-tier IT firms.

HCL Technologies

Earlier in January, the company tightened its revenue guidance band to between 4.5% and 5% year-on-year in constant currency for FY25, with IT services revenue growth expected to be between 4.5% and 5% and EBIT margin between 18% and 19%. In the Q3 post-earnings call, C. Vijayakumar, CEO and MD of the company, told analysts that while the organic Q4 ask rate was (-1.32%) to (+0.6%) to reach the lower and higher ends of the guidance, “We have seen an improvement in demand; small deals are getting converted quicker, and larger deals are taking time.” However, with Trump tariffs coming into effect earlier this month, Kotak Institutional Securities noted in their April 4th report the company’s relatively higher exposure to managed services and the retail and manufacturing sectors, which are in the eye of the tariff storm. Industry watchers will be looking out for not just FY26 revenue and margin guidance but also large deals and discretionary spends.

Tech Mahindra

Tech Mahindra , under CEO & MD Mohit Joshi—currently undergoing changes with the goal of reaching industry-peer growth in revenue and profitability by FY27—reported $1.5 billion in revenues in Q3FY25, a constant-currency growth of 1.3% year-on-year and 1.2% quarter-on-quarter. Ongoing investments within the firm, along with global uncertainty and currency headwinds, could throw a spanner in its turnaround story. While the company has seen some recovery in its US geography businesses—which were down nearly 5% at the end of FY24 to -2.3% in Q3FY25—its higher exposure to HiTech & Media, along with manufacturing, could see discretionary spend pullback as its biggest challenge this year. Nomura analysts, in their note dated April 2nd, said they expect the company’s revenue to decline by 0.8% quarter-on-quarter in constant-currency terms in Q4, led by weaker performance in the CMT vertical. However, EBIT margins could see an increase of 20 basis points quarter-on-quarter, despite salary hikes, aided by the ongoing cost-optimisation exercise.

LTIMindtree

During the Q3 results, LTIMindtree’s CEO and MD, Debashis Chatterjee (DC), cautioned, “As we enter calendar year ’25, political and economic uncertainties persist. With a new government in the US and the possibility of policy changes, predicting spending trends with certainty is challenging.” With the company having appointed Venugopal Lambu, Chief Executive Officer (Designate), as Chatterjee’s successor in January of this year, investors will be watching out for the strategic priorities of the incoming CEO in what could be one of the most difficult years for the Indian IT sector. While in Q3FY25, on the back of growth in manufacturing and BFSI industries, the company clocked revenue of $1.13 billion—up 1.8% quarter-on-quarter and 5.6% year-on-year in constant currency—its EBIT margin took a hit of 170 bps quarter-on-quarter to 13.7% in Q3FY25, mainly due to salary hikes.

In the last quarter’s earnings call, Chatterjee told analysts, “We are optimistic about sustaining growth momentum into the fourth quarter, supported by deal ramp-ups, the reversal of most furloughs, and continued strength in the BFSI vertical.” However, he also cautioned that growth could see short-term headwinds as the company passes on AI-driven productivity to its clients. “While we expect to improve margins in Q4, absorbing the full impact of wage hikes may take a bit longer in the current growth environment,” he added.

HDFC Securities expects Q4 to see a flattish sequential growth of 0.1% in dollar terms and has a favourable view on the company among mid-tier IT companies.