TCS and HCL Tech Shares Recover from Early Losses Following Q3 FY26 Results
TCS and HCL Tech shares recovered from early post-earnings losses to trade positively by noon, with TCS up 0.6% at ₹3,258.10 and HCL Tech gaining 0.15% at ₹1,670.10. Despite the intraday bounce, analysts remain cautious about near-term growth prospects for both companies, citing limited visibility and sustainability concerns. Both stocks continue facing longer-term pressure, down over 24% and 16% respectively over the past year.
*this image is generated using AI for illustrative purposes only.
Tata Consultancy Services and HCL Technologies shares staged a midday recovery on Tuesday, reversing early post-earnings losses to trade in positive territory as investors reassessed their Q3 FY26 results. The turnaround coincided with broader market improvement, with both BSE Sensex and NSE Nifty erasing morning declines to move into green territory.
Stock Performance Recovery
The intraday performance of both IT majors showed a clear reversal pattern from their morning lows:
| Company | Midday Price | Change (%) | Previous Session |
|---|---|---|---|
| TCS | ₹3,258.10 | +0.6% | +1.1% |
| HCL Tech | ₹1,670.10 | +0.15% | Morning decline >2% |
TCS stock demonstrated resilience after initial concerns around limited growth visibility weighed on early trading. The recovery built on the previous session's firm 1.1% gain ahead of the earnings announcement, suggesting selective buying interest during weakness.
HCL Technologies clawed back from morning losses exceeding 2%, despite delivering strong operational performance and upgrading guidance in their Q3 results. The stock's recovery indicated stabilizing sentiment after initial post-results selling pressure.
Analyst Sentiment and Concerns
Brokerages acknowledged steady execution and operational stability from both companies but maintained cautious outlooks. For TCS, analysts highlighted several constraining factors including muted international business trends, modest forward indicators, and limited clarity on sharp growth acceleration prospects. Most research houses remained in neutral or cautious territory despite recognizing operational stability.
HCL Tech faced different concerns from the analyst community. Despite strong fundamentals and guidance upgrades, brokerages flagged seasonality risks, particularly in the products business segment. Valuation comfort levels and historical post-results performance patterns also contributed to restrained near-term optimism.
Longer-Term Performance Challenges
Despite the midday recovery, both stocks continue facing significant longer-term headwinds:
| Stock | Year-to-Date Performance |
|---|---|
| TCS | Down >24% |
| HCL Tech | Down >16% |
The sustained pressure on both stocks over the past year reflects broader investor concerns about the IT sector's growth trajectory and earnings momentum sustainability.
Market Focus Areas
Investor attention remains concentrated on several key factors that could drive future performance. Deal execution capabilities, demand momentum sustainability, and the translation of AI-led initiatives into durable growth recovery represent critical areas of focus. Analysts broadly recognized healthy deal pipelines and resilient margins from both companies, but enthusiasm remained tempered by questions around growth sustainability and near-term earnings momentum.
The intraday rebound suggests some investors viewed the early weakness as a selective buying opportunity, though the cautious analyst commentary indicates that significant catalysts may be needed to drive sustained upward momentum in both stocks.
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