TCS, Infosys, Wipro, HCL Tech Q1 Results 2025: Mixed Earnings, Cautious Hiring, AI Shift in Focus

by Shan 2025-07-25 08:33:01

The results of India's largest IT companies, namely TCS, Infosys, Wipro, and HCL Tech, have been somewhat mixed for the first quarter of FY26: the world is still in uncertainty, enterprise tech spending is still delayed, and while Infosys did demonstrate stable growth, TCS and Wipro experienced year-over-year revenue declines. Margins remain under pressure, companies are not applying large salary rises, and they are shifting their focus towards productivity gains driven through AI.

The decline of the Nifty IT index, down 10% YoY, continues to lag the broader Nifty 50 index, so is there any turnaround for Indian IT?

Q1FY26 Snapshot: How India’s Top IT Players Performed

Company	CC Revenue Growth (YoY)	Net Profit Growth (YoY)	Headcount Change	Attrition (LTM)	FY26 Fresher Hiring Target	Revenue Guidance (FY26)
TCS	−3.1%	+6%	+5,090	13.8%	42,000	None
Infosys	+3.8%	+8.7%	+210	14.4%	20,000+	1–3% CC revenue growth
HCL Tech	+3.7%	−9.7%	−269	12.8%	1,984 (Q1 alone)	3–5% CC revenue growth
Wipro	−2.3%	+10%	−114	15.1%	10,000–12,000 (planned)	−1% to +1% QoQ (Q2FY26)

TCS Q1FY26: Revenue Declines, Hiring Expands

TCS posted a 3.1% YoY decline in constant currency revenue, though net profit rose 6% to Rs.12,760 crore. The company added 5,090 employees during the quarter, taking its total headcount to 6.13 lakh. TCS plans to onboard 42,000 freshers in FY26.

However, no announcement has been made regarding salary hikes. Attrition ticked up to 13.8%. TCS management said client spending is likely to pick up later in the year but stopped short of providing revenue guidance.

“Once the lack of clarity in the market lifts, spending should come back,” said CEO K. Krithivasan.

Infosys Q1FY26: Growth Continues, Guidance Raised

Infosys clocked 3.8% YoY revenue growth in CC terms and 8.7% growth in net profit. Total employee count stood at 3.23 lakh, with over 20,000 freshers expected to be hired in FY26.

The company recently rolled out wage hikes but has not confirmed plans for further increases. Attrition stood at 14.4%.

Guidance was revised upward to 1–3% CC revenue growth for FY26, indicating cautious optimism. Deal wins totaled $3.8 billion, with over half coming from new clients.

HCL Tech Q1FY26: Revenue Up, Margins Under Pressure
HCL Technologies saw revenue rise 3.7% YoY, but profit dropped nearly 10% to Rs. 3,843 crore due to declining margins. The company’s headcount shrank by 269 employees in Q1, although 1,984 freshers were added.
Salary hikes are expected to start in October 2025. Attrition was stable at 12.8%. Revenue guidance for FY26 remains at 3–5%, but EBIT margin estimates were revised down to 17–18%.
Wipro Q1FY26: Profit Up Despite Revenue Dip
Wipro's revenue in CC terms declined by 2.3% on a YoY basis but profit increased by 10% YoY to Rs. 3,336 crore. However, the company's headcount fell by 114. The company intends to hire between 10,000 and 12,000 freshers this fiscal year.
Attrition edged up slightly to 15.1%, which remains the highest of its peers. Wipro has not yet announced any salary hike during this cycle, after wage revisions in September 2024. Revenue guidance for Q2FY26 in constant currency terms implies a range of −1% to +1%.
Sector Trends: AI in Focus, Attrition Stabilises
Companies are shifting from mass hiring to skill-focused roles in AI, cybersecurity, and cloud.
AI integration is reportedly delivering 5–15% productivity gains.
Attrition has plateaued at 13–15%, with companies focusing on retention.
North America and Europe continue to drive demand uncertainties.
“AI is no longer a buzzword but a real driver of efficiency, changing how services are delivered and margins are protected,” said Abhishek Jain, Head of Research at Arihant Capital.
What’s Next for Indian IT?
There are some selective positives in the IT sector—such as stable performance from Infosys and TCS indicating continued hiring—but the outlook overall is mixed. The Nifty IT index has lagged for three weeks in a row, and global tech budgets remain under pressure.
However, assuming hiring momentum persists and client demand remains steady, we may gradually see a recovery over the next few quarters.
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