TCS vs Wipro vs Infosys vs HCL Tech: Which inventory to purchase after Q3 outcomes 2025?

Although the December quarter (Q3FY25) earnings of home IT majors TCS, Infosys, HCL Tech, and Wipro had been blended, they didn’t convey many disappointments. This has raised hopes that the worst could also be behind for the IT sector. Whereas it is perhaps too early to attract definitive conclusions, consultants stay largely optimistic concerning the Indian IT sector following the Q3 outcomes.

Throughout the quarter, TCS mentioned it witnessed robust TCV (whole contract worth) and expressed optimism about its long-term progress prospects. Alternatively, Infosys raised FY25 income progress steering for the third straight quarter to 4.5-5 per cent in fixed forex (CC) phrases.

HCL Tech mentioned its new deal bookings had been wholesome throughout Q3, at $2.1 billion, with wins throughout providers and software program. Wipro’s Q3 numbers had been broadly consistent with expectations.

TCS Q3 outcomes

Consolidated income from operations of the IT bellwether grew 5.6 per cent year-on-year (YoY) to ₹63,973 crore from ₹60,583 crore in the identical quarter final 12 months. In fixed forex (CC) phrases, the corporate’s income rose 4.5 per cent. Revenue for the interval underneath assessment attributable to shareholders got here at ₹12,380 crore, up 12 per cent YoY, from ₹11,058 crore in Q3FY24.

“We’re happy with the wonderful TCV efficiency in Q3, which was well-rounded throughout industries, geographies and repair strains, lending good visibility to long-term progress,” mentioned Ok Krithivasan, Chief Govt Officer and Managing Director, TCS.

Infosys Q3 outcomes

Revenues in CC phrases grew by 3.9 per cent 12 months over 12 months. The corporate’s internet revenue, at ₹6,806 crore for the October-December quarter, rose 11.4 per cent 12 months over 12 months.

We proceed to strengthen our enterprise AI capabilities, notably specializing in generative AI, which is witnessing rising consumer traction. This has led to a different quarter of robust giant deal wins and an improved deal pipeline, giving us higher confidence as we glance forward,” mentioned Salil Parekh, CEO and MD.

HCL Tech Q3 outcomes

HCL Tech’s consolidated internet revenue rose 5.5 per cent to ₹4,591 crore, in comparison with ₹4,350 crore within the corresponding interval final 12 months. Income from operations rose 5 per cent to ₹29,890 crore, in comparison with ₹28,446 crore within the year-ago interval. The corporate mentioned it expects income progress to be between 4.5- 5 per cent YoY in CC phrases in FY25.

“HCL Tech delivers one other quarter of stable progress at 3.8 per cent QoQ in fixed forex and EBIT at 19.5 per cent. I’m happy that this progress is powered by broad-based efficiency throughout enterprise strains as our shoppers throughout verticals and geos reaffirm their confidence in our digital and AI choices,” mentioned C Vijayakumar, CEO and Managing Director, HCL Tech.

Wipro Q3 outcomes

Wipro reported a 24.5 per cent year-on-year rise in its consolidated internet revenue for Q3FY25 to ₹3,353.8 crore. Consolidated income from operations noticed a year-on-year rise of almost 1 per cent, coming at ₹22,319 crores throughout Q3FY25.

Which IT inventory must you purchase?

Specialists identified that whereas Infosys’s Q3 numbers had been weaker than anticipated, TCS and Wipro’s earnings had been in line, and their administration commentary sounded optimistic. They discover HCL Tech’s progress steering disappointing.

TCS seems to be their high decide for the brief time period, adopted by Wipro.

Mahesh M Ojha, AVP of analysis at Hensex Securities, recommends shopping for TCS inventory at ₹4,125, with a goal worth of ₹4,160, ₹4,185, ₹4,200, ₹4,250 and ₹4,300. He recommends preserving a cease loss beneath ₹4,060.

After TCS, he recommends shopping for Wipro within the vary of ₹281-282, with a goal worth of ₹292, ₹298, ₹310 and ₹325. He recommends a cease lack of ₹276.

For the long run, brokerage agency Motilal Oswal Monetary Providers recommends shopping for TCS, Infosys, and HCL Tech.

Motilal Oswal has a goal worth of ₹5,000 for TCS, ₹2,400 for HCL Tech and ₹2,200 for Infosys.

“Given its measurement, order e book and publicity to long-duration orders and portfolio, TCS is well-positioned to develop over the medium time period. Owing to its steadfast market management place and best-in-class execution, the corporate has been capable of maintain its industry-leading margin and display superior return ratios,” mentioned Motilal Oswal.

“For Infosys, we have now marginally tweaked our estimates for FY25/FY26/FY27E, reflecting the anticipated QoQ income decline in 4Q wanted to satisfy the higher finish of steering, alongside the cautious commentary. Infosys has maintained its margin steering of 20-22 per cent, which we view as encouraging. We anticipate Infosys to be a key beneficiary of the acceleration in IT spending within the medium time period,” Motilal Oswal mentioned.

“HCL Tech’s Q3 numbers and This autumn steering had been underwhelming. Valuation parity is now achieved for the massive three—HCL Tech, TCS, and Infosys. The hurdle price for HCL Tech to re-rate is larger than its friends,” mentioned Motilal Oswal.

“Nonetheless, we imagine HCL Tech’s diversified portfolio is well-positioned. A 23 per cent improve in ACV (annual contract worth) regardless of a muted TCV (whole contract worth) bodes effectively for short-cycle offers and will proceed to learn HCL Tech within the medium time period,” the brokerage agency mentioned.

Motilal Oswal has a “impartial” view on Wipro, with a goal worth of ₹290.

“We anticipate Wipro to clock almost 17 per cent working margin in FY25, which ought to translate right into a 7.5 per cent CAGR in INR PAT over FY24-27E. We have now raised our FY25E EPS by almost 5 per cent to issue within the margin beat and stored FY26E/FY27E EPS broadly unchanged after its Q3 print,” mentioned Motilal Oswal.

Learn all market-related information right here

Disclaimer: The views and suggestions above are these of particular person analysts, consultants, and brokerage companies, not Mint. We advise buyers to seek the advice of licensed consultants earlier than making any funding choices.