Over the past one-week leading IT service companies have reported lackluster June 2025 quarter results and investors on Dalal Street did not expect anything different from Infosys. The company reported its results after the close of Wednesday trading. The Infosys stock ended Wednesday trade 0.9 % lower at Rs 1556.
Performance in the June 2025 quarter
Infosys grew its revenues on a constant currency basis by 2.6 % quarter-on-quarter to Rs 42, 279 crore in the June 2025 quarter. Last week, Wipro reported a 2 % quarter – on – quarter constant currency decline in its key IT services revenues at Rs 22,080 crore in the first quarter of FY 26.
And HCL Tech reported revenues of Rs 30,349 crore in the June 2025 quarter, and on a constant currency basis revenue was down 0.8 % quarter – on – quarter.
However, Infosys’ core consolidated operating profit margin at 23.5 % in the June 2025 quarter and it declined nearly 60 basis points on a q-o-q basis. Higher operating costs also resulted in Wipro’s core consolidated operating profit margin shrinking 130 basis points q-o-q to 19.4 % in the June 2025 quarter.
Similarly, HCL Tech‘s core operating profit margin was 19.9 % in the June 2025 quarter, a fall of 150 basis points on a q-o-q basis.
Meanwhile, Infosys’ consolidated net profit at Rs 6,924 crore in the June 2025 quarter declined nearly 1.6 % on a q-o-q basis. And Wipro’s consolidated net profit at Rs 3,336.5 crore in the first quarter of FY26 declined 7 % q-o-q. HCL Tech’s net profit was Rs 3,844 crore in the June 2025 quarter, a fall of 10.8 % on a q-o-q basis.
Infosys like its peers has marginally upgraded its guidance for FY 26 – it now expects revenue growth on a constant currency basis at 1 – 3 %. Infosys while declaring its results for fourth quarter of FY25 in April 2025 had provided for a guidance in revenue growth of 0%-3% in constant currency during FY 26.
Infosys also had large deal TCV of $ 3.8 billion in the June 2025 quarter vis-à-vis $ 2.6 billion in the March 2025 quarter.
Meanwhile, Wipro also expects the revenues of IT services business in September 2025 quarter to be somewhat better – it has provided for a sequential guidance of (-)1.0% to 1.0% in constant currency terms.
HCL Tech had marginally raised its FY 26 growth outlook – it has highlighted company revenue growth is expected to be between 3 – 5 % y-o-y in constant currency vis-à-vis its earlier forecast of 2 – 5 % y-o-y in constant currency that was made while declaring its fourth quarter of FY 25 results in April 2025.
Investors on Dalal Street
Infosys hit a 52-week of Rs 1,307 on 7 April 2025 and it ended Wednesday’s trade 0.9 % lower at Rs 1,556.
Wipro stock hit a 52-week low of Rs 225 on 7 April 2025 and it ended Wednesday’s trade 0.4 % higher at Rs 260.8
Investors on Dalal Street have been skeptical on the growth outlook for IT services companies, given the muted growth in IT spending in the key US market amidst the tariff war of the Trump administration.
Outlook
Infosys trades at a P/E of nearly 23 times estimated consolidated FY 26 earnings. And Wipro trades at a P/E of nearly 20 times estimated consolidated FY 26 earnings.
Clearly, with no clear signs of visible improvement in IT spending in the key US market over the next few quarters, one could adopt a wait-and-watch attitude for stocks in this sector.
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
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