IT Earnings Check: Why TCS, HCL Tech Face Valuation Pressure | Q3 Results

India’s IT majors TCS and HCL Tech reported earnings largely in line with expectations, but concerns remain over growth outlook and valuations. While margins were stable and currency tailwinds supported reported earnings, management commentary failed to offer strong visibility on future growth. Rising labour costs, muted demand and guidance tweaks have raised questions on whether current valuations are justified. Market Expert Dharmesh Kant, Head of Equity Research, Chola Securities say short-term trading opportunities may emerge, but long-term investors may need to stay cautious as the sector faces consolidation and margin pressure.