Despite good quarterly results, there is a decline in the shares of IT companies.Image Credit source: Google Gemini

The process of releasing quarterly results of IT companies in the country has started. The quarterly results of the country's largest IT companies TCS, Infosys, Wipro etc. have not been good. On the other hand, HCL Tech's results have disappointed a bit. Due to which a decline in the company's shares was also seen on Wednesday. If seen overall, the performance of IT companies has not been bad. Even after that, the Nifty IT index has seen a decline of more than 4 percent in the last 4 trading days.

However, some other reasons are also being given behind this. Experts believe that the growth of IT companies is expected to slow down in the coming days. On the other hand, like last year, this year also the threat of AI seems to be looming over the IT companies of the country. America is the biggest client of Indian IT companies. But given the current situation, America's position also appears to be shaky. Because of which the companies there can cut their expenses.

On the other hand, there has been a rise in the shares of IT companies in the last few weeks. Due to which investors have also started booking profits. On the other hand, the effect of selling by foreign investors is also not clearly visible in IT shares. Let us try to understand these things with figures.

Quarterly results of IT companies

1. Tata Consultancy Services reported a 12.22 per cent (y-o-y) increase in its consolidated net profit in Q4FY26 to Rs 13,718 crore as against Rs 12,224 crore in the same period last year. At the same time, TCS's net profit has seen an increase of about 29 percent on a quarter-on-quarter basis.
2. In the March quarter, Wipro's net profit increased by 12.3 percent on a quarterly basis to Rs 3,502 crore. However, the revenue was seen at 2.4 billion dollars, which is less than the market estimate of 2.6 billion dollars. Wipro's income from IT services was $2.65 billion. There was an increase of 0.6 percent on quarterly basis and 2.1 percent on annual basis.
3. If we talk about HCL Tech, in the fourth quarter of the financial year 2026, the net profit increased by 4.2 percent to Rs 4,488 crore. Rs 4,307 crore was seen in the same quarter of the last financial year.
4. The quarterly results of Infosys, one of the largest IT companies in the country, will be released on Thursday, April 23. Experts estimate that Infosys' revenue may see a decline of 0.2 percent to 0.7 percent on a quarter-on-quarter basis.

Performance of shares of IT companies?

1. The shares of TCS, the country's largest IT company, have seen a decline of about 2 percent in the last 5 trading days. Whereas in the last one month, the company's shares have seen an increase of 6 percent.
2. HCL Tech shares have seen a decline of about 12 percent in the last 5 trading days. Whereas in one month this decline is seen to be 5 percent. By the way, on Wednesday itself the shares of the company had fallen by about 11 percent.
3. Shares of Infosys, one of the biggest IT companies of the country, have fallen by more than 4 percent in the last 5 trading days. Whereas in the last one month this increase has been only 1 percent.
4. If we talk about Wipro, then in the last 5 trading days, the shares of the company have fallen by 3.64 percent. Whereas in the last one month an increase of about 9 percent has been seen.
5. The Nifty IT index has seen a decline of more than 4 percent since April 16. Whereas in a month, Nifty IT has seen a rise of more than 9 percent.

Why are IT stocks falling?

1. Poor future projections: The companies have shown good profits in the results, but the future growth rate is expected to be slow, due to which the investors are disappointed. This is the reason why investors seem to be losing confidence in IT stocks.
2. Threat of AI: Artificial Intelligence (AI) is threatening the traditional business model of IT companies, due to which there is concern of reduced revenue. Something similar was seen last year also. There was a huge jump in the shares of AI companies of countries like America, Korea, Japan.
3. Economic uncertainty in America: Indian IT companies are dependent on American clients, and due to tariffs and recession fears in the US, clients are reducing spending. The effect of which can also be seen on the revenue and profits of the companies. On the other hand, the fall in the dollar and the impact of Trump's policy can also be seen.
4. Profit Booking: As we told you that in the last one month there has been a rise in the shares of IT companies. A jump of more than 9 percent has been seen in the IT index. Due to which investors are recovering profits, due to which selling pressure is being seen in the shares.
5. Profit booking by foreign investors: Weakness in Nifty IT index and exit of FIIs is also a cause of pressure. If we look at the figures, although less than other sectors, foreign investors have reduced their holdings in IT shares. In the first fortnight of April, FIIs have withdrawn Rs 1,325 crore from IT stocks.

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