IT Stocks Jump After June-Quarter Earnings Release

IT stocks generally jumped Thursday after those June-quarter earnings came out. Investors seemed to favor companies that showed better growth, pushing hard on margins and guidance for the ones that fell short.
The Nifty IT index ticked up 1.33% in morning trade, hitting 29,103.50. Some large names were doing well. Tech Mahindra, HCLTech, Infosys, TCS, Persistent Systems they all saw gains, up to 2.87 per cent. But Wipro took a hit, slipping 1.75 percent after its own results came in. LTIMindtree, though? Largely flat.
Look at Tech Mahindra first. They reported a solid 28.4 per cent jump in consolidated net profit for the June quarter, hitting Rs 1,465 crore. Management seemed pretty confident about demand right now.
Meanwhile, Wipro was under pressure. They posted a sequential decline in net income for the quarter 4.7 per cent drop. It felt rougher there.
Tech Mahindra really led the pack among the IT names rising by 2.66 per cent. Revenue growth looked steady at 2.6% sequentially in constant currency, and their EBIT margin was 14.4%. That beat what analysts were expecting. JM Financial saw this execution as strong. They kept their ‘Add’ rating and bumped up the target price to Rs 1,670 from where it was before. They pointed to a healthy order book and better earnings visibility overall.
Motilal Oswal was even more bullish. They held onto their ‘Buy’ rating with a target of Rs 1,900. The brokerage thought revenue growth was really “moving up a gear.” Margins looked okay too, despite the mixed demand environment. Management there is aiming for a 15% EBIT margin by FY27.
But Wipro’s story was different. They faced tougher scrutiny on margins. First-quarter revenue was basically in line with estimates, fine enough. But that IT services EBIT margin landed at 16%, which was below what the street expected. Wage hikes and the investment push into AI were definitely squeezing things there.
And their outlook? Very cautious. Guidance for the second quarter showed little real excitement constant currency revenue growth ranged from a painful -1.5% up to just +0.5%. Demand uncertainty is still hanging over them.
JM Financial adjusted its view on Wipro accordingly, dropping the rating to ‘Reduce’ and setting the target price at Rs 160. They felt the company was lagging peers in growth, even if they were holding onto their medium-term margin goal of 17 to 17.5 per cent. Motilal Oswal also tempered expectations, keeping a ‘Neutral’ rating but trimming those FY27 earnings estimates after seeing that slower organic growth and those weaker margins.
It really highlights something happening across the sector this season. The stock reactions are stark. Investors are clearly rewarding companies showing consistent revenue momentum, winning big deals, and improving their bottom line. They're getting nervous about firms where execution is shaky or demand feels softer.
Brokerages aGree on one thing: the global technology spending recovery isn’t a massive boom yet. It’s gradual. Companies that managed to execute well, diversified their client base, and kept those big deal momentum going? Those are the ones expected to pull ahead as everyone focuses on AI transformation and cutting costs now.
Written by Gree News Team — Senior Editorial Board
Gree News Team covers international news and global affairs at Gree News. Our collective of senior editors is dedicated to providing independent, accurate, and responsible journalism for a global audience.
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