TCS and HCL Technologies Report Q3 FY26 Results Amid Market Volatility and Cautious Outlook

Tata Consultancy Services (TCS) and HCL Technologies (HCLTech) reported their Q3 FY26 results with mixed outcomes. TCS saw a 14% year-on-year profit decline to Rs 10,657 crore, impacted by one-time labour code costs and legal provisions, despite revenue growth and rising AI services. HCLTech's net profit fell 11% year-on-year to Rs 4,076 crore, affected by new labour code expenses, though revenue grew strongly with AI-related business expanding. Brokerages remain cautiously optimistic, highlighting improving deal pipelines and AI traction but flagging limited near-term upside amid macro uncertainties. Indian equity markets showed volatility, influenced by profit-taking, foreign fund outflows, and trade discussions between India and the US.