Infosys, Wipro, TechM, HCL Tech shares in focus as TCS' Q1 results disappoint

Tier I IT stocks such as Infosys, Wipro, Tech Mahindra (TechM) and HCL Technologies are in focus on Friday morning after the largest IT services firm, Tata Consultancy Services (TCS), reported a mixed set of quarterly results, with higher-than-expected revenue degrowth sequentially, hinting at persisting demand environment challenges. 

TCS reported a 3.3 per cent sequential degrowth in revenue in constant currency (CC) terms against the consensus expectations of a 1.4 per cent QoQ decline. Despite muted performance in FY24 and FY25, international revenues declined 0.5 per cent QoQ in CC terms. 

Following this, Infosys ADRs tumbled 3.83 per cent to $18.10 in NYSE trading overnight. The stock recovered some group in the after hour trading and stood at $18.22. Wipro ADRs fell 4.89 per cent to $2.92 and later recovered in after-hour trading to $2.95.
This comes as the BSE IT index has already fallen 13 per cent in 2025 so far against 6 per cent rise in the BSE Sensex during the same period. TCS, Infosys, HCL Tech and TechM shares have fallen up to 18 per cent in 2025, with TCS coming in as worst performer.

Infosys is widely expected to lead Q1 revenue growth among Tier-1 companies, with revenue growth of 1.7 per cent QoQ in CC terms aided by seasonality and weak base of Q4FY25. 

For the June quarter, TCS' EBIT margin expanded 30 basis points QoQ to 24.5 per cent, which was in-line with estimates. PAT for the quarter beat the Street estimates. Deal-wins came in at $9.4 billion was in line with $7-10 billion TCV that anlaysts predicted. 

Nirmal Bang Institutional Equities said a muted demand environment continues to weigh on Tier-1 IT companies. Client caution around discretionary spending remains an overhang, with BFSI, Retail, and Hi-Tech verticals still witnessing weak budgets, it said.

For now, Nuvama has cut its target on the stock to Rs 3,950 from Rs 4,050 earlier. Nomura India reduced its target on TCS to Rs 3,780 from Rs 3,820. UBS also cut its target on TCS to Rs 3,950 from Rs 4,050.