Infosys, TCS, Coforge, Hexaware, TechM, LTIM, Persistent, Mphasis, Wipro, HCL Tech: IT Q4 results preview
Q4 results preview: There could be company-specific headwinds such as large deal ramp-up costs, wage hikes (LTIM, Wipro), and fewer billing days, ICICI Securities said.
- Apr 1, 2026,
- Updated Apr 1, 2026 1:29 PM IST
Healthy deal wins, steady revenue growth, and the likelihood that large-cap IT companies could guide for slightly better growth in FY27 at the mid-point compared with FY26 may help ease investor concerns over AI-driven deflation intensifying in FY27, ICICI Securities said in its latest note.
The domestic brokearge sees IT firms to report minus 0.3 per cent to 3.2 per cent sequential constant currency (CC) revenue growth in Q4FY26 for IT Services companies. It said 2026 client budgets are stable, likely resulting in healthy total contract value (TCV) growth across the pack. The AI-led productivity benefits are front-loaded and pose a risk to margins if an IT company is unable to realise these benefits over the course of the deal, adding that acquisition intensity by larger peers has increased, likely in an attempt to lift subdued revenue growth and benefit from attractive valuations. AI deflation not likely to intensify in FY27, it said.
Tata Consultancy Services Ltd (TCS) In the case of TCS, ICICI Securities expects 1.4 per cent (1 per cent organic) quarter-on-quarter (QoQ) CC growth for TCS in Q4FY26E, led by healthy revenue growth momentum in the BFSI and technology verticals; revenue growth improvement in telecom; and a 0.4 per cent contribution from the 2.5-month consolidation of the Coastal Cloud acquisition.
"Demand continues to be soft in retail and auto, while it remains stable in manufacturing (excluding auto) and energy, resources and utilities. Client budgets are stable, and we expect deal bookings to be around $9 billion (in line with the past three-quarter average run-rate of USD 9.5bn). We expect the EBIT margin to be flat QoQ, as the company is likely to invest benefits from INR depreciation into sales, marketing and AI capability building," it said.
Infosys Ltd ICICI Securities estimated soft revenue growth of minus 0.2 per cent QoQ CC for Infosys in Q4FY26E, which implies a 3.4 per cent YoY CC growth for FY26E, near the top end of its guidance of 3-3.5 per cent. Demand remains healthy in the financial services and energy, resources & utilities verticals; both are expected to grow faster in FY27 against FY26, as per management.
"Deal bookings and the pipeline also remain healthy. We expect EBIT margin to decline by 60bps QoQ to 20.6 per cent, led by headwinds from: 1) Visa costs, 2) fewer billing days, 3) absence of a 40bps gain from land sales recognised in Q3 and 4) an incremental 15- 20bps impact from renewal in labour code, which would be partially offset by INR depreciation and savings from project Maximus," it said.
ICICI Securities expects Infosys to guide for 3-5 per cent YoY CC revenue growth for FY27E. As Infosys has not yet decided on a timeline for rolling out the FY26 annual compensation hike, it expects this could be an additional headwind for FY27.
HCL Technologies Ltd (HCL Tech) ICICI Securities expects 1.1 per cent QoQ CC decline in overall revenue for HCL Tech, with growth of 1.4 per cent QoQ CC from IT services and ER&D, offset by a decline in software products. Revenue growth momentum is likely to be led by the financial services and hi-tech. Auto vertical remained soft, ICICI Securities said. The $473 million 5-year mega deal won in Q3FY26 in consumer vertical is likely to start ramping up from Q1FY27, it said.
ICICI Securities expects deal TCV of $2-2.5 billion in Q4. The brokerage expects a 66bps QoQ decline in margins as headwinds from employee restructuring costs, wage hikes and lower margins in a seasonally weak software products business are likely to be partially offset by INR depreciation and operating efficiencies.
"We expect the company to guide for 4-6 per cent YoY CC organic revenue growth and EBIT margin of 17-18 per cent for FY27. For FY27, absence of employee restructuring costs (~50bps) would be a margin tailwind, which could be offset by headwinds from large deal ramp-up," it said.
Wipro Ltd ICICI Securities expects Wipro to report 1.7 per cent QoQ CC (flat organic) revenue growth in IT services, led by two-month contribution of 1.7 per cent QoQ dollar from Harman DTS services business; healthy organic growth momentum in BFSI and stable IT spends in technology & communication and consumer verticals.
"Wipro’s healthcare vertical was affected due to the impact on its payer and provider clients from lower-than-expected federal spending on Medicaid and Medicare programmes. Energy and resources vertical growth has been soft as the company has not won any large deal in this vertical over the past one year," ICICI Securities said.
While the company did not callout any initial signs of a slowdown in decision making on account of the Middle East conflict , it could have an impact, if the conflict escalates.
Tech Mahindra Ltd (TechM) ICICI Securities expects Q4FY26E revenue growth of minus 0.3 per cent QoQ CC due to $1-2 million impact from the West Asia conflict (TechM has less than 5 per cent exposure to the West Asia) and lower-than-expected positive seasonality of Comviva business. Q3 had one-time revenue of 70 bps from Pininfarina business and positive seasonality in BPS Retail, which would be absent in Q4.
"Banking vertical was soft in Q3 due to one-time productivity sharing. We believe growth could revive in banking. Deal bookings are expected to remain strong in Q4 at around $1-2 billion. We expect EBIT margin to expand by 40bps QoQ, led by tailwinds from currency depreciation and project Fortius which may be offset by headwinds from soft revenue growth and large deal ramp ups," it said.
Strong bookings momentum in FY26 is seen supporting TechM in its aspiration to grow at the top quadrant of IT services industry growth in FY27. A $500 million large deal won in Q3FY26 is seen starting ramping up from Q1FY27.
LTIMindree Ltd (LTIM) ICICI Securities expects 1.3 per cent QoQ CC growth for LTIM in Q4FY26, due to deferral in billing in the West Asian market, owing to the ongoing conflict between US, Israel, and Iran. It also sees a delay in the ramp-up of the CBDT deal due to a delay in the delivery of hardware components, which was due in March 2026.
"We expect the top client in BFSI to bottom out (after experiencing headwinds from productivity pass-throughs) in Q4FY26. We expect revenue growth to be led by technology (led by broad-based growth across top accounts and ramp-up of large media deal), consumer, healthcare and public services verticals," it said.
Mphasis Ltd ICICI Securities expects 2.5 per cent QoQ CC growth for Mphasis in Q4FY26E, led by continued strong growth momentum in BFS and insurance. Logistics & transportation and technology vertical revenues could be stable. With strong TTM deal bookings at two times YoY and the client-specific issue in the logistics vertical now in the base, the brokerage expects revenue growth momentum to continue, implying at least low double-digit growth in FY27E.
"Mphasis has exposure to airlines, we do not see signs of a slowdown from this segment yet, despite the Middle East crisis. Mphasis has negligible exposure to the Middle East. The second-order impact of higher inflation is likely to impact IT spending across sectors. We expect deal bookings in Q4FY26E to be around $300-400mn, leading to $2 billion-plus in annual bookings," it said.
Coforge Ltd ICICI Securities expects revenue growth of 2 per cent QoQ CC for Coforge, lower than strong growth implied by the conversion of the next 12- month executable orderbook. Softness is likely due to slower conversion of TCV to revenue in larger deals (16 large deals signed in 9MFY26 against 14 in FY25). Coforge won a $158 million, 5-year contract with a UK-based client for AI-led digital transformation in February.
"We expect the overall orderbook to be healthy, in line with the past four-quarter average of $550 million. We expect EBIT margins to improve by 134 bps QoQ, supported by the absence of headwinds arising from wage hikes, furloughs and third-party software costs, which impacted Q3 margins. We model organic growth of 12.6 per cent YoY CC for FY26E. Overall revenue growth will depend on the timing of the closure of the Encora deal in H1FY27," it said.
Persistent Systems Ltd The broking expects Persistent Systems to report 3.2 per cent QoQ CC revenue growth, led by BFSI vertical, followed by healthcare and hitech in Q4FY26E. It expects heathy deal bookings momentum to continue with strong growth on YoY basis in deal TCV. it sees a slight 20bps QoQ decline in EBIT margin at 16.5 per cent, as headwind on margins due to normalisation in license sales. "We expect software license revenue from Persistent’s proprietary AI platforms to remain volatile in the near term, in the early phases of adoption by client," ICICI Securities said.
Hexaware Technologies Ltd ICICI Securities expects Hexaware to report 0.5 per cent QoQ degrowth in CC revenue, due to budget cut in one of the two GSE clients, having 70bps impact on annual revenue in CY26 and lower billing days.
"We expect revenue growth momentum to improve from June’26 quarter led by healthy deal bookings, strong deal pipeline crossing USD 4bn with a potential to win a couple of large consolidation wins. The guidance provided by the company for CY26 (at least 7.6 per cent YoY USD) is conservative and does not factor in the potential vendor consolidation deal win with the existing GSE client," it said.
The brokerage expects EBIT margin to decline 30 bps QoQ to 13.4 per cent due to headwinds from ramp-up of large rebadging deal and soft revenue growth, which would be offset by currency depreciation.
Healthy deal wins, steady revenue growth, and the likelihood that large-cap IT companies could guide for slightly better growth in FY27 at the mid-point compared with FY26 may help ease investor concerns over AI-driven deflation intensifying in FY27, ICICI Securities said in its latest note.
The domestic brokearge sees IT firms to report minus 0.3 per cent to 3.2 per cent sequential constant currency (CC) revenue growth in Q4FY26 for IT Services companies. It said 2026 client budgets are stable, likely resulting in healthy total contract value (TCV) growth across the pack. The AI-led productivity benefits are front-loaded and pose a risk to margins if an IT company is unable to realise these benefits over the course of the deal, adding that acquisition intensity by larger peers has increased, likely in an attempt to lift subdued revenue growth and benefit from attractive valuations. AI deflation not likely to intensify in FY27, it said.
Tata Consultancy Services Ltd (TCS) In the case of TCS, ICICI Securities expects 1.4 per cent (1 per cent organic) quarter-on-quarter (QoQ) CC growth for TCS in Q4FY26E, led by healthy revenue growth momentum in the BFSI and technology verticals; revenue growth improvement in telecom; and a 0.4 per cent contribution from the 2.5-month consolidation of the Coastal Cloud acquisition.
"Demand continues to be soft in retail and auto, while it remains stable in manufacturing (excluding auto) and energy, resources and utilities. Client budgets are stable, and we expect deal bookings to be around $9 billion (in line with the past three-quarter average run-rate of USD 9.5bn). We expect the EBIT margin to be flat QoQ, as the company is likely to invest benefits from INR depreciation into sales, marketing and AI capability building," it said.
Infosys Ltd ICICI Securities estimated soft revenue growth of minus 0.2 per cent QoQ CC for Infosys in Q4FY26E, which implies a 3.4 per cent YoY CC growth for FY26E, near the top end of its guidance of 3-3.5 per cent. Demand remains healthy in the financial services and energy, resources & utilities verticals; both are expected to grow faster in FY27 against FY26, as per management.
"Deal bookings and the pipeline also remain healthy. We expect EBIT margin to decline by 60bps QoQ to 20.6 per cent, led by headwinds from: 1) Visa costs, 2) fewer billing days, 3) absence of a 40bps gain from land sales recognised in Q3 and 4) an incremental 15- 20bps impact from renewal in labour code, which would be partially offset by INR depreciation and savings from project Maximus," it said.
ICICI Securities expects Infosys to guide for 3-5 per cent YoY CC revenue growth for FY27E. As Infosys has not yet decided on a timeline for rolling out the FY26 annual compensation hike, it expects this could be an additional headwind for FY27.
HCL Technologies Ltd (HCL Tech) ICICI Securities expects 1.1 per cent QoQ CC decline in overall revenue for HCL Tech, with growth of 1.4 per cent QoQ CC from IT services and ER&D, offset by a decline in software products. Revenue growth momentum is likely to be led by the financial services and hi-tech. Auto vertical remained soft, ICICI Securities said. The $473 million 5-year mega deal won in Q3FY26 in consumer vertical is likely to start ramping up from Q1FY27, it said.
ICICI Securities expects deal TCV of $2-2.5 billion in Q4. The brokerage expects a 66bps QoQ decline in margins as headwinds from employee restructuring costs, wage hikes and lower margins in a seasonally weak software products business are likely to be partially offset by INR depreciation and operating efficiencies.
"We expect the company to guide for 4-6 per cent YoY CC organic revenue growth and EBIT margin of 17-18 per cent for FY27. For FY27, absence of employee restructuring costs (~50bps) would be a margin tailwind, which could be offset by headwinds from large deal ramp-up," it said.
Wipro Ltd ICICI Securities expects Wipro to report 1.7 per cent QoQ CC (flat organic) revenue growth in IT services, led by two-month contribution of 1.7 per cent QoQ dollar from Harman DTS services business; healthy organic growth momentum in BFSI and stable IT spends in technology & communication and consumer verticals.
"Wipro’s healthcare vertical was affected due to the impact on its payer and provider clients from lower-than-expected federal spending on Medicaid and Medicare programmes. Energy and resources vertical growth has been soft as the company has not won any large deal in this vertical over the past one year," ICICI Securities said.
While the company did not callout any initial signs of a slowdown in decision making on account of the Middle East conflict , it could have an impact, if the conflict escalates.
Tech Mahindra Ltd (TechM) ICICI Securities expects Q4FY26E revenue growth of minus 0.3 per cent QoQ CC due to $1-2 million impact from the West Asia conflict (TechM has less than 5 per cent exposure to the West Asia) and lower-than-expected positive seasonality of Comviva business. Q3 had one-time revenue of 70 bps from Pininfarina business and positive seasonality in BPS Retail, which would be absent in Q4.
"Banking vertical was soft in Q3 due to one-time productivity sharing. We believe growth could revive in banking. Deal bookings are expected to remain strong in Q4 at around $1-2 billion. We expect EBIT margin to expand by 40bps QoQ, led by tailwinds from currency depreciation and project Fortius which may be offset by headwinds from soft revenue growth and large deal ramp ups," it said.
Strong bookings momentum in FY26 is seen supporting TechM in its aspiration to grow at the top quadrant of IT services industry growth in FY27. A $500 million large deal won in Q3FY26 is seen starting ramping up from Q1FY27.
LTIMindree Ltd (LTIM) ICICI Securities expects 1.3 per cent QoQ CC growth for LTIM in Q4FY26, due to deferral in billing in the West Asian market, owing to the ongoing conflict between US, Israel, and Iran. It also sees a delay in the ramp-up of the CBDT deal due to a delay in the delivery of hardware components, which was due in March 2026.
"We expect the top client in BFSI to bottom out (after experiencing headwinds from productivity pass-throughs) in Q4FY26. We expect revenue growth to be led by technology (led by broad-based growth across top accounts and ramp-up of large media deal), consumer, healthcare and public services verticals," it said.
Mphasis Ltd ICICI Securities expects 2.5 per cent QoQ CC growth for Mphasis in Q4FY26E, led by continued strong growth momentum in BFS and insurance. Logistics & transportation and technology vertical revenues could be stable. With strong TTM deal bookings at two times YoY and the client-specific issue in the logistics vertical now in the base, the brokerage expects revenue growth momentum to continue, implying at least low double-digit growth in FY27E.
"Mphasis has exposure to airlines, we do not see signs of a slowdown from this segment yet, despite the Middle East crisis. Mphasis has negligible exposure to the Middle East. The second-order impact of higher inflation is likely to impact IT spending across sectors. We expect deal bookings in Q4FY26E to be around $300-400mn, leading to $2 billion-plus in annual bookings," it said.
Coforge Ltd ICICI Securities expects revenue growth of 2 per cent QoQ CC for Coforge, lower than strong growth implied by the conversion of the next 12- month executable orderbook. Softness is likely due to slower conversion of TCV to revenue in larger deals (16 large deals signed in 9MFY26 against 14 in FY25). Coforge won a $158 million, 5-year contract with a UK-based client for AI-led digital transformation in February.
"We expect the overall orderbook to be healthy, in line with the past four-quarter average of $550 million. We expect EBIT margins to improve by 134 bps QoQ, supported by the absence of headwinds arising from wage hikes, furloughs and third-party software costs, which impacted Q3 margins. We model organic growth of 12.6 per cent YoY CC for FY26E. Overall revenue growth will depend on the timing of the closure of the Encora deal in H1FY27," it said.
Persistent Systems Ltd The broking expects Persistent Systems to report 3.2 per cent QoQ CC revenue growth, led by BFSI vertical, followed by healthcare and hitech in Q4FY26E. It expects heathy deal bookings momentum to continue with strong growth on YoY basis in deal TCV. it sees a slight 20bps QoQ decline in EBIT margin at 16.5 per cent, as headwind on margins due to normalisation in license sales. "We expect software license revenue from Persistent’s proprietary AI platforms to remain volatile in the near term, in the early phases of adoption by client," ICICI Securities said.
Hexaware Technologies Ltd ICICI Securities expects Hexaware to report 0.5 per cent QoQ degrowth in CC revenue, due to budget cut in one of the two GSE clients, having 70bps impact on annual revenue in CY26 and lower billing days.
"We expect revenue growth momentum to improve from June’26 quarter led by healthy deal bookings, strong deal pipeline crossing USD 4bn with a potential to win a couple of large consolidation wins. The guidance provided by the company for CY26 (at least 7.6 per cent YoY USD) is conservative and does not factor in the potential vendor consolidation deal win with the existing GSE client," it said.
The brokerage expects EBIT margin to decline 30 bps QoQ to 13.4 per cent due to headwinds from ramp-up of large rebadging deal and soft revenue growth, which would be offset by currency depreciation.