Q3 FY26 Results Update: TCS, Infosys, HCLTech — Key Takeaways, Fundamentals, CMP, and What to Watch Next
India’s Q3FY26 earnings season (Oct–Dec 2025 quarter) has put the spotlight back on large-cap IT. While global tech-spend is still selective, one theme is getting louder across management commentaries: AI monetisation is real, and large-deal momentum is becoming the biggest differentiator. At the same time, headline profits have looked “messy” in places due to one-time impacts linked to India’s new labour codes, which also affected reported margins for multiple companies.
Below is a reader-friendly, blog-ready breakdown of TCS, Infosys, HCLTech (results already out) and the next key results to watch (Wipro, Tech Mahindra), along with CMP (as per the latest available official/market close snapshots) and practical signals long-term investors and short-term traders typically track.
Market Context: Why These Q3 Results Matter
For IT services, Q3 is usually a seasonally softer quarter because of holidays in key markets. This time, however, the street focus has stayed firmly on:
Revenue growth in constant currency (CC) (true demand signal)
Large deal wins / TCV / order book strength (forward visibility)
Margins and cost control (especially with wage cycles + subcontracting)
AI revenue + AI-led deal wins (monetisation, not just buzz)
Guidance changes (the biggest trigger for re-rating)
Across the board, demand remains mixed, but the companies showing stronger deal ramp-ups and clearer AI-led execution have been rewarded.
TCS (Tata Consultancy Services) — Q3FY26 Highlights
CMP (Latest available close snapshot)
₹3,192.30 (close on Jan 14, 2026)
(Company page also reflects the Jan 14 trading snapshot with delayed quotes.)
What TCS reported (Q3FY26)
TCS highlighted steady quarterly performance with visible traction in AI services and a strong order book:
Revenue: $7,509 million, up 0.6% QoQ (and 0.8% QoQ in constant currency)
Operating margin: 25.2% (stable sequentially)
Order book / Deal wins (TCV): $9.3 billion 👉tcs
AI services: Annualised AI services revenue highlighted at $1.8 billion (scaling up)
On the India (₹) reported numbers widely tracked domestically:
Revenue from operations: ₹67,087 crore (YoY growth reported around 5%)
Net profit: ₹10,657 crore, impacted by exceptional / one-time costs
Dividend / shareholder trigger
TCS announced a total dividend of ₹57 per share (including a special dividend) with record date 17 Jan 2026 and payment date shared by the company.
This matters because dividend actions often influence short-term price behaviour around the ex-date.
Investor lens: Key positives & key watch-outs
Positives
Strong TCV/order book supports near-term visibility.
AI revenue scaling suggests early monetisation benefits.
Watch-outs
Headline profit was dragged by one-time items (including labour-code related effects cited across the sector), so investors should focus on operating performance and commentary.
Technical angle (practical levels to watch)
Without overcomplicating charts: for many traders, round-number zones become immediate battlegrounds. For TCS, ₹3,200 is a psychologically important region given the latest close near ₹3,192. If the stock holds above that zone after earnings digestion, sentiment can stabilise; if not, traders usually look for the next consolidation base formed earlier in the month.
Infosys (INFY) — Q3FY26 Highlights
CMP (Latest official exchange snapshot)
₹1,599.80 (as on Jan 14, 2026, on NSE)
What Infosys reported (Q3FY26)
Infosys delivered a quarter where revenue beat expectations, guidance improved, and the market reaction was notably positive in global trading.
Revenue: ₹45,479 crore, up 8.9% YoY
Net profit: ₹6,654 crore, down ~2.2% YoY, largely because of a one-time labour code impact
Operating margin (reported): 18.4%
Large deal wins: $4.8 billion, up from the previous quarter’s $3.1 billion cited in coverage
FY26 revenue guidance raised: to 3.0%–3.5% (constant currency)
The labour code impact (why profit looked weaker)
Infosys explicitly referenced a ₹1,289 crore adjustment related to Labour Codes in its Q3 materials, and noted that FY26 margin guidance excludes that adjustment.👉Infosys
That’s why many analysts treated the profit dip as more “accounting/event-driven” than a deterioration in core demand.
What really drove the quarter
A stronger deal environment for AI-led transformation work, with major deal mentions in media coverage.
Guidance raise signalled improving confidence into FY26’s finish.
Technical angle (short-term trading view that many readers search)
A pre-results technical preview highlighted support around ₹1,575–₹1,585 and resistance around ₹1,630–₹1,650.
Post-results, traders often re-test these zones—if price sustains above resistance, momentum strategies kick in; if it fades, it can slip back into a range.
HCLTech (HCLTECH) — Q3FY26 Highlights
CMP (Latest available close snapshot)
~₹1,668 (close on Jan 14, 2026)
(Market snapshot also reflects ~₹1,668.50 around Jan 14.)
What HCLTech reported (Q3FY26)
HCLTech delivered a quarter that beat revenue expectations, supported by growth in banking and technology segments.
Revenue: ₹33,872 crore, up 13.3% YoY
Reuters also flagged stronger-than-expected revenue and noted sectoral strengths (banking, tech).👉Hcltech
Profit: Reuters noted profit decline (YoY) linked to a one-time labour-code charge.
Company communication also highlighted raised revenue growth guidance in constant currency terms.
Investor lens
Positives
Visible momentum in key verticals like banking and technology.
Guidance tightening/raising generally signals management confidence (the market watches this closely).
Watch-outs
Margin/profit optics can be noisy due to one-time impacts; investors should compare “reported” vs “underlying” performance where management provides that clarity.
Next Big Q3FY26 Results to Watch (Already Scheduled)
Even if your article’s core focus is “results out”, readers love a quick “what’s next” list because it helps them plan.
Wipro (WIPRO) — results scheduled
Wipro has officially said it will announce Q3 results on Jan 16, 2026 (after market hours in India).
What the market will track:
CC revenue guidance commentary
Europe demand, large deal ramp-ups
Margin trajectory
Tech Mahindra (TECHM) — results scheduled
Tech Mahindra’s investor site reflects the stock snapshot and confirms the company context around the period; multiple reports indicate Q3 results on Jan 16, 2026.
What to watch:
Enterprise deal momentum and pipeline
Margin improvement trajectory (street expects profitability improvement in some previews)
Quick Comparison: What These Q3 Results Signal for the IT Sector
Putting it all together:
Deal wins matter more than seasonal softness.
Infosys’ large deal wins ($4.8B) and TCS’ TCV ($9.3B) are the kind of numbers the street uses to build confidence for the next 2–3 quarters.AI is shifting from narrative to revenue line-items.
TCS explicitly highlighted annualised AI services revenue, and Infosys’ guidance raise was tied to demand and deal momentum that includes AI-led engagements in coverage.Labour code one-offs distorted headline profits.
Infosys disclosed the ₹1,289 crore adjustment; Reuters also pointed to one-time labour code charges for peers. This is why investors should avoid reacting to only the “net profit down” headline without reading the notes.
Practical Takeaways for Investors & Traders
If you’re investing (6–24 months view)
Prefer companies showing consistent large deal conversion and stable margins, even if short-term profit is noisy due to one-offs.
Watch guidance direction closely—upgrades often lead to re-rating, especially when supported by order-book strength.
If you’re trading (days–weeks view)
Keep an eye on post-results gap moves and whether they hold for 2–3 sessions.
Track support/resistance zones that the market is already discussing (example ranges were cited around Infosys in previews).
Dividend ex-dates can also create short-term volatility and volume spikes.
Bottom Line
Q3FY26 has reinforced that Indian IT is not in a broad demand boom yet—but deal execution and AI monetisation are becoming the clearest “winner filters.” TCS and HCLTech showed resilience with stable operational performance and strong demand pockets, while Infosys stood out for guidance upgrade + large deal strength, even as profits were pulled down by a clearly disclosed one-time impact.
As the next set of results arrives (Wipro, Tech Mahindra), the sector narrative will be shaped less by “growth vs no growth” and more by order book quality, ramp-up speed, and margin durability.
👉Further reading
Indian Markets Weekly View (Jan12-16, 2026 – Volatility Up, Key Supports in Focus
SIP vs Lump Sum: Which Is Better for Mutual Fund Investors?
Mutual Funds Explained:Types, Returns & Risks
Why Investment Matters: Detailed Explanation
Disclaimer:
This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Stock market investments are subject to market risks. Please do your own research and consult a registered financial advisor before making investment decisions.