The Nifty IT index rose around 2.5% in Thursday morning trading on 15 October 2026, extending an advance of roughly 9% over three sessions as IT stocks gained momentum. The rebound followed substantial earlier underperformance and coincided with weakness in expensive AI-linked technology shares overseas. According to latest reports, HCLTech, TCS, Infosys, Wipro and Tech Mahindra participated in the rally, though gains varied by stock with the intraday reading showing 2.4% reference rather than full three-day returns. The powerful rebound was driven by earnings, short covering, and a shift in investor positioning, though it does not automatically establish the start of a prolonged uptrend.
Sandip Agarwal of Sowilo Investment Managers predicts Indian IT stocks could hit new all-time highs in 6-12 months as AI-led deflation eases and earnings improve. According to CNBC TV18, Agarwal said the IT index has rallied around 10% since TCS announced its results and expects the gains to extend as companies see better revenue growth and improved margins, supported by gradual AI adoption by enterprise clients. He believes the sector will deliver 45 to 70% cumulative EPS CAGR over the next three years, even if valuation multiples remain unchanged. Agarwal favours IT services companies over engineering research and development (ER&D) firms, citing better risk-reward opportunities in midcap and smallcap players.
India's four major IT services companies delivered mixed performance in the September quarter, with significant variations in deal wins, revenue growth, and artificial intelligence adoption. According to reports from NDTV Profit, HCLTech reported a sharp sequential increase in new bookings and advanced AI revenue, while TCS's annualised AI revenue crossed $3 billion. Wipro's deal bookings declined from the previous quarter, even as its constant-currency revenue growth returned to flat territory. Tech Mahindra reported sequential revenue growth in constant-currency terms and continued investing in its AI portfolio.
HCLTech reported new bookings of $3.26 billion in the September quarter, up 35.5% sequentially from $2.4 billion in the June quarter, describing it as their second-highest quarterly booking total. As reported by NDTV Profit, the company recorded its strongest first half on record and management saw demand building over the past quarter. TCS reported deal wins worth $9.6 billion, marginally higher than $9.5 billion in the preceding quarter, though below the estimate of $10 billion. Wipro's total bookings fell to $2.6 billion from $3.3 billion, a sequential decline of 22.9% in constant-currency terms, with large-deal total contract value dropping to $700 million from $1.6 billion. Tech Mahindra reported new deal wins of $1.023 billion, up 25.4% year-on-year but down 5.1% sequentially.
HCLTech's revenue grew 11.5% year-on-year to ₹35,620 crore in the September quarter, with net income reaching ₹5,132 crore, up 21.2%, while EBIT margin improved to 18.2%, rising 1.31% sequentially. According to NDTV Profit, TCS reported constant-currency revenue growth of 0.5%, compared with 0.4% in the March quarter, with international revenue growing 1.2% sequentially. Wipro reported flat constant-currency growth, an improvement from the 1.2% decline recorded in the June quarter. Tech Mahindra's revenue grew 2.4% sequentially in constant-currency terms. On sequential constant-currency revenue growth, HCLTech recorded the highest rate among the four companies, followed by Tech Mahindra, TCS and Wipro.
TCS's annualised AI revenue reached $3.1 billion, crossing 10% of its revenue and continuing to grow at a double-digit rate, as reported by NDTV Profit. The company said clients were increasingly adopting an AI-plus-human approach and that AI-related revenue carried higher margins than its overall business. HCLTech reported advanced AI revenue of $219 million, up 28.4% sequentially from $171 million in the June quarter, with 78% year-on-year growth. Wipro said clients were focusing on cost optimisation, legacy modernisation and scaling agentic AI, with CEO Srini Pallia highlighting that investments in AI services were helping pursue opportunities beyond traditional technology spending. Tech Mahindra is expanding its AI solutions portfolio and continuing investments in its Helix programme, with management highlighting its SpaceX.ai partnership and saying high-tech was seeing significant AI adoption.
Wipro has scheduled its September-quarter Q2 FY27 earnings announcement for after Indian market hours on 15 October, with its earlier guidance putting IT Services revenue for the quarter in a range of $2.574–2.627 billion. Investors will watch whether performance lands near the upper end and whether the next-quarter outlook points to a broader recovery. Tech Mahindra has participated in the IT-sector advance, but confirmation requires sustained progress in its operating turnaround. According to latest reports, investors should assess telecom-related demand, execution of cost and efficiency programmes, conversion of bookings to revenue and the trend in EBIT margin when the next quarterly disclosure becomes available.
