TCS vs Wipro vs Infosys vs HCL Tech: Which stock to buy after Q3 results 2025? | Stock Market News

Even though the December quarter (Q3FY25) earnings of domestic IT majors TCS, Infosys, HCL Tech, and Wipro were mixed, they did not bring many disappointments. This has raised hopes that the worst may be behind for the IT sector. While it might be too early to draw definitive conclusions, experts remain largely positive about the Indian IT sector following the Q3 results.

During the quarter, TCS said it witnessed strong TCV (total contract value) and expressed optimism about its long-term growth prospects. On the other hand, Infosys raised FY25 revenue growth guidance for the third straight quarter to 4.5-5 per cent in constant currency (CC) terms.

HCL Tech said its new deal bookings were healthy during Q3, at $2.1 billion, with wins across services and software. Wipro’s Q3 numbers were broadly in line with expectations.

TCS Q3 results

Consolidated revenue from operations of the IT bellwether grew 5.6 per cent year-on-year (YoY) to ₹63,973 crore from ₹60,583 crore in the same quarter last year. In constant currency (CC) terms, the company’s revenue rose 4.5 per cent. Profit for the period under review attributable to shareholders came at ₹12,380 crore, up 12 per cent YoY, from ₹11,058 crore in Q3FY24.

“We are pleased with the excellent TCV performance in Q3, which was well-rounded across industries, geographies and service lines, lending good visibility to long-term growth,” said K Krithivasan, Chief Executive Officer and Managing Director, TCS.

Infosys Q3 results

Revenues in CC terms grew by 3.9 per cent year over year. The company’s net profit, at ₹6,806 crore for the October-December quarter, rose 11.4 per cent year over year.

We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction. This has led to another quarter of strong large deal wins and an improved deal pipeline, giving us greater confidence as we look ahead,” said Salil Parekh, CEO and MD.

HCL Tech Q3 results

HCL Tech’s consolidated net profit rose 5.5 per cent to ₹4,591 crore, compared to ₹4,350 crore in the corresponding period last year. Revenue from operations rose 5 per cent to ₹29,890 crore, compared to ₹28,446 crore in the year-ago period. The company said it expects revenue growth to be between 4.5- 5 per cent YoY in CC terms in FY25.

“HCL Tech delivers another quarter of solid growth at 3.8 per cent QoQ in constant currency and EBIT at 19.5 per cent. I am pleased that this growth is powered by broad-based performance across business lines as our clients across verticals and geos reaffirm their confidence in our digital and AI offerings,” said C Vijayakumar, CEO and Managing Director, HCL Tech.

Wipro Q3 results

Wipro reported a 24.5 per cent year-on-year rise in its consolidated net profit for Q3FY25 to ₹3,353.8 crore. Consolidated revenue from operations saw a year-on-year rise of nearly 1 per cent, coming at ₹22,319 crores during Q3FY25.

Which IT stock should you buy?

Experts pointed out that while Infosys’s Q3 numbers were weaker than expected, TCS and Wipro’s earnings were in line, and their management commentary sounded optimistic. They find HCL Tech’s growth guidance disappointing.

TCS appears to be their top pick for the short term, followed by Wipro.

Mahesh M Ojha, AVP of research at Hensex Securities, recommends buying TCS stock at ₹4,125, with a target price of ₹4,160, ₹4,185, ₹4,200, ₹4,250 and ₹4,300. He recommends keeping a stop loss below ₹4,060.

After TCS, he recommends buying Wipro in the range of ₹281-282, with a target price of ₹292, ₹298, ₹310 and ₹325. He recommends a stop loss of ₹276.

For the long term, brokerage firm Motilal Oswal Financial Services recommends buying TCS, Infosys, and HCL Tech.

Motilal Oswal has a target price of ₹5,000 for TCS, ₹2,400 for HCL Tech and ₹2,200 for Infosys.

“Given its size, order book and exposure to long-duration orders and portfolio, TCS is well-positioned to grow over the medium term. Owing to its steadfast market leadership position and best-in-class execution, the company has been able to sustain its industry-leading margin and demonstrate superior return ratios,” said Motilal Oswal.

“For Infosys, we have marginally tweaked our estimates for FY25/FY26/FY27E, reflecting the anticipated QoQ revenue decline in 4Q needed to meet the upper end of guidance, alongside the cautious commentary. Infosys has maintained its margin guidance of 20-22 per cent, which we view as encouraging. We expect Infosys to be a key beneficiary of the acceleration in IT spending in the medium term,” Motilal Oswal said.

“HCL Tech’s Q3 numbers and Q4 guidance were underwhelming. Valuation parity is now achieved for the big three—HCL Tech, TCS, and Infosys. The hurdle rate for HCL Tech to re-rate is higher than its peers,” said Motilal Oswal.

“Nonetheless, we believe HCL Tech’s diversified portfolio is well-positioned. A 23 per cent increase in ACV (annual contract value) despite a muted TCV (total contract value) bodes well for short-cycle deals and should continue to benefit HCL Tech in the medium term,” the brokerage firm said.

Motilal Oswal has a “neutral” view on Wipro, with a target price of ₹290.

“We expect Wipro to clock nearly 17 per cent operating margin in FY25, which should translate into a 7.5 per cent CAGR in INR PAT over FY24-27E. We have raised our FY25E EPS by nearly 5 per cent to factor in the margin beat and kept FY26E/FY27E EPS broadly unchanged after its Q3 print,” said Motilal Oswal.

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