From TCS to Infosys, December quarter IT results hint at a better FY26

The third-quarter (October-December) of 2024-25, seasonally a soft quarter for Indian information-technology (IT) services firms, has shown early signs of recovery for the sector.

 

While underlying growth continued to be weak in the quarter for most of the top players, what is giving confidence is the commentary that discretionary expenditure is coming back.

 

Management in all the top players has said discretionary spend is gaining momentum, especially in the largest vertical -- banking and financial services -- along with sectors like retail and health.

 

Among the top four -- Tata Consultancy Services (TCS), Infosys, HCLTech, and Wipro -- it is