TCS, HCL Tech kick off IT Q3 earnings season on high note
India's IT giants TCS and HCL Tech just reported their Q3 results—and while profits dipped, both companies managed to beat revenue expectations.
The drop in profits came from new labor laws and company restructuring, but overall the mood is upbeat as they start the sector's earnings season.
What's up with their numbers?
TCS grew its revenue by 2% quarter-on-quarter to ₹67,087 crore, topping analyst predictions. Still, higher labor costs and legal expenses meant net profit dropped 12% sequentially.
HCL Tech did even better on revenue—up 13%—but its profit also slipped by 11% due to restructuring.
Despite this, both held onto solid margins: TCS at 25.2%, HCL at 18.6%.
Big deals and what's next
TCS landed $9.3 billion in new contracts this quarter (with AI-related services now generating over $1.5 billion in annualized revenue).
HCL Tech booked $3 billion in deals, up 17% from last quarter.
Looking ahead, HCL nudged its services revenue growth forecast for the current year slightly higher—showing confidence despite the bumps along the way.