IT Stocks Rally Ahead of Q2 Earnings: TCS, Infosys, Tech Mahindra, HCL Tech Lead Sensex Gains

Shares of leading IT companies rose on Wednesday, with TCS, Infosys, Tech Mahindra, and HCL Technologies among the top gainers on the Sensex. The rally comes as investors anticipate the sector’s Q2 FY26 earnings, which are expected to set the tone for India’s broader technology segment.

Sensex Gains Led by Top IT Stocks

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At the opening bell, the Sensex climbed 258 points, or 0.3%, and currently trading at 81,732.59, while the Nifty rose 65 points and currently trading at 25037.90. Among IT stocks, Infosys recorded the highest gains, rising around 2% to ₹₹1,487.20. TCS followed with a 1.65% increase to ₹3,022.80. Tech Mahindra advanced aroud 1% to ₹1,453.20, while HCL Technologies edged higher by nearly 1% to ₹1,445.30.

TCS will report on Thursday, October 9, and HCL Tech on Monday, October 13, marking the start of the IT earnings season. While the India business is predicted to be stable, analysts anticipate TCS to record a modest sequential revenue increase of 0.2-1% in constant-currency terms, driven mostly by the BFSI and hi-tech verticals. Wage increases and decreased utilisation rates are expected to have a minor impact on margins, which are expected to remain stable at 24.5%.

Q2 Earnings Outlook and Analyst Expectations

Brokerages remain cautiously optimistic about the sector’s recovery. Strong deal ramp-ups, efficient project execution, and a stabilising global environment are expected to bolster IT services growth in the second half of FY26. Investors will pay close attention to TCS’s guidance on demand trends and its deal pipeline, including the $640 million contract with Scandinavian insurer Tryg and the upcoming BSNL project ramp-up expected in Q3, which could indicate broader client spending patterns.

Performance Trends and Long-Term Sector View

Despite Wednesday’s gains, IT stocks have underperformed over the past year. TCS shares have declined nearly 29%, while Infosys has fallen around 24%. Tech Mahindra, affected by subdued telecom spending, has lagged, and HCL Technologies is down approximately 19%. In contrast, the Nifty 50 index has increased 0.53% during the same period, highlighting the relative weakness of India’s large-cap IT stocks amid global technology spending pressures.

Analysts suggest that investors will closely scrutinise management commentary during the upcoming earnings season to determine if the sector has weathered the worst of the slowdown. The performance of marquee IT companies in this quarter will be key in shaping market expectations for India’s software exports in the months ahead.

Conclusion

IT stocks opened higher on Wednesday, led by Infosys share price, TCS, Tech Mahindra, and HCL Technologies, ahead of the Q2 earnings season. While short-term gains reflect optimism, the sector’s full-year performance will depend on client demand, deal flows, and global technology spending trends.