The third‑quarter earnings season for Indian listed companies kicks off next week, beginning with two major IT firms and the country’s top private bank.
Why the quarter matters
Analysts are watching this period closely because the government cut the goods and services tax in September 2025 and because global tensions could affect companies that do business abroad. The government also expects the Indian economy to grow about 7.4% this financial year, driven by manufacturing, services, household spending, and fixed‑asset investment.
IT giants TCS and HCL – what to expect
Tata Consultancy Services (TCS)
- Revenue is likely to rise 2.6% quarter‑on‑quarter, helped by banking, financial services, insurance (BFSI) and high‑tech contracts.
- EBIT margin may fall 28 basis points because of higher wages, more investment, and fewer working days.
- Key things to watch: total contract value of deals, outlook for business verticals, and a large advance order from BSNL.
HCL Technologies
- Revenue is expected to grow 4.5% quarter‑on‑quarter, driven by engineering R&D and software services.
- EBIT margin could improve by 187 basis points thanks to favorable currency movements, partially offset by wage hikes.
- Important factors: deal pipeline, performance of ER&D and services units, adoption of generative AI, and management guidance.
HDFC Bank – loan and deposit trends
- Loan growth should stay strong, while the net interest margin (NIM) is expected to hold steady.
- Watch the deposit mix – especially retail deposits – and the credit‑deposit (CD) ratio, which is projected to be between 98% and 100%.
- The balance between loan‑to‑deposit ratio (LDR), liquidity coverage ratio (LCR) and NIM will be crucial for the bank’s health.
Other companies reporting Jan 12‑17
- Infosys
- Wipro
- ICICI Bank
- Tech Mahindra
- Tata Technologies
- Groww
- and more than 110 additional firms
Bottom line for investors
These earnings will give a clearer picture of how India’s biggest IT exporters and its leading private bank are handling tax cuts, global uncertainty, and rising costs. Keep an eye on revenue growth, margin changes, and the banks’ deposit‑loan dynamics.
Remember, this is perspective, not a prediction. Do your own research or talk to a financial advisor before making any investment decisions.