Q4 Earnings Snapshot : How India’s IT Majors Performed Amid Global Headwinds

18 April 2025

A Mixed Quarter for Indian IT as Global Pressures Hit Growth and Guidance

India’s top four IT companies—TCS, Infosys, Wipro, and HCL Technologies have released their Q4 results for FY25. Amid global uncertainty, cautious client spending, and trade tensions, the sector has delivered a mixed performance. While TCS and HCL Tech have managed to maintain relative stability, Infosys and Wipro are facing sharper pressures.

Tata Consultancy Services (TCS) : Holding Steady

Revenue: ₹64,479 crore (up 5.3% YoY), slightly below estimates
Net Profit: ₹12,224 crore, down 1.69% YoY
Deal Wins: $12.2 billion (vs $13.2 billion a year ago)

Management Commentary: CEO K Krithivasan flagged weak discretionary tech spending, especially in sectors like retail, travel, and automotive due to U.S. trade-related uncertainty. However, BFSI remained stable and the company is optimistic about FY26.

Brokerage Ratings:

Jefferies: Buy | Target ₹4,400
Nomura: Neutral | Target ₹4,050
Motilal Oswal: Buy | Target ₹4,500
ICICI Securities: Add | Target ₹4,350

Infosys : Growth Hit, Weak Guidance

Revenue: ₹40,925 crore (up 7.9% YoY), below expectations
Net Profit: ₹7,033 crore, down 11.8% YoY
Deal Wins: $2.6 billion (vs $4.5 billion YoY)

Management Commentary: CEO Salil Parekh cited delays in client decision-making amid macro uncertainty and trade issues. The company gave a cautious FY26 revenue guidance of just 0–3%.

Brokerage Ratings:

Citi: Sell | Target ₹1,350
JPMorgan: Underweight | Target ₹1,420
Kotak: Reduce | Target ₹1,480
HDFC Securities: Hold | Target ₹1,550

Wipro : Weak Quarter, Tough Outlook

Revenue: ₹22,126–22,346 crore (down 4–5% YoY)
Net Profit: ₹2,778–2,829 crore (down 8–10% YoY)

Management Commentary: The company expects a sequential revenue decline of 1.5–3.5% in the next quarter. Brokerages remain cautious due to the absence of visible near-term recovery.

Brokerage Ratings:

Nomura: Reduce | Target ₹460
Morgan Stanley: Underweight | Target ₹430
Axis Securities: Sell | Target ₹445
ICICI Direct: Hold | Target ₹470

HCL Technologies : Quiet Strength

Revenue: ₹29,890 crore (up 5% YoY)
Net Profit: ₹4,591 crore (up 5.54% YoY)
Deal Wins: $2.1 billion across 12 large deals

Management Commentary: CEO C Vijayakumar emphasized the advantage of HCL’s diversified portfolio. The company expects 4.5–5% revenue growth in FY26 and remains confident about deal momentum.

Brokerage Ratings:

Bernstein: Outperform | Target ₹1,790
CLSA: Buy | Target ₹1,800
Motilal Oswal: Buy | Target ₹1,740
Prabhudas Lilladher: Accumulate | Target ₹1,750

Sector Overview : Mixed Signals for Indian IT

This quarter reflects a divide within the Indian IT sector. TCS and HCL Technologies have weathered global headwinds better, while Infosys and Wipro are seeing deal slowdowns and cautious customer spending.

Overall, analysts are selectively optimistic. TCS and HCL Tech are being favored for their strong order books and visibility, while Infosys and Wipro continue to be viewed with caution due to weak outlook and client hesitation.