Indian IT Firms Report Mixed Q3 Earnings Amid Subdued Growth and AI-Driven Demand

India's major IT firms, TCS and HCL Technologies, have reported third-quarter earnings that are slightly better than anticipated but indicate subdued underlying growth. While cost management and currency depreciation are supporting margins, year-on-year constant currency growth remains below 5%. HCL Technologies highlighted strong deal momentum, with $3 billion in bookings driven by AI-led demand, and advanced AI revenues showing sequential growth. Analysts note that despite these results, valuations for the IT sector are considered stretched, though some see potential upside for both TCS and HCLTech based on future recovery and AI investments.