Indian tech earnings take centre stage as Q1 results loom

India's June-quarter earnings season begins in earnest next week, headlined by major information technology and banking names. HCL Technologies is set to report on Monday, July 13, followed later in the week by Wipro. The banking sector will also see heavyweights including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Yes Bank release their results.

The reporting period follows an upbeat Friday session where the Nifty 50 and Sensex both closed more than 1% higher, though both benchmarks still posted marginal losses for the week. “Investor focus will increasingly shift to the first-quarter earnings season, with the technology sector expected to remain in the spotlight following Tata Consultancy Services' better-than-expected results,” said Ponmudi R, CEO of Enrich Money. “Attention will now turn to another IT heavyweight, HCL Technologies.”

Analysts anticipate a mixed performance for HCL. Axis Securities forecasts quarterly revenue growth of 3.5%, noting headwinds in specific client accounts and seasonal software weakness partially offset by a weaker rupee. However, the brokerage warns that EBIT margins are expected to decline by 40 basis points quarter-on-quarter due to restructuring costs and higher investments. “Key monitorables include a) management outlook on the Services and ERD businesses, b) software business performance, c) deal pipeline, and d) FY27 revenue guidance,” the firm said in a note.

Wipro faces similar margin pressures. Revenue is projected to grow just 1% quarter-on-quarter, as delayed deal ramp-ups and client-specific issues offset the contribution from its Harman acquisition. “EBIT margins are likely to decline by 84 bps QoQ due to wage hikes and higher AI investments. Key monitorables include a) outlook on the European business and acquisitions, b) new deal wins, and c) management guidance for FY27,” the firm said.

Outside of technology, HDFC Bank's results will draw significant scrutiny. Axis Securities anticipates healthy credit and deposit growth, alongside a slight quarterly increase in the loan-to-deposit ratio. A sharp drop in non-interest income is expected compared to the prior year, reflecting one-time gains from the sale of HDB shares in the first quarter of fiscal 2026. “Operating efficiency gains to keep opex ratios contained. Barring seasonal agri slippage, do not expect any challenges of AQ,” the brokerage added.

Market participants will specifically focus on HDFC Bank's management commentary regarding deposit accretion, especially FCNR deposits, and the margin trajectory hereon. The broader slate of results, which also includes Jio Financial Services, J. K. Cement and Bharat Heavy Electricals, will provide the first comprehensive snapshot of corporate India's health for the fiscal year.