IT Q4 Results FY26: How to Read Them as a Beginner

Imagine your child brings home a school report card at the end of every term, showing marks in each subject and a teacher’s remark at the bottom. Quarterly results are a company’s version of that report card. India’s IT sector, which contributes over 50 billion in annual revenue according to NASSCOM data, is handing in its Q4 FY26 report cards right now. TCS, Infosys, Wipro, and HCLTech are all reporting numbers for the January to March 2026 quarter, and if you own IT stocks on the NSE or BSE, or hold an IT sector mutual fund, these five key numbers will tell you exactly how your investment performed.

In fact, you do not need an accounting degree because the entire exercise comes down to understanding five metrics. I will walk you through each one using real results from TCS (revenue of Rs 70,698 crore) and Wipro (revenue of Rs 24,236 crore) that were published earlier this month.

What Does “Q4 FY26 Results” Actually Mean?

A financial year in India runs from April to March, unlike the January-to-December calendar year. FY26 refers to April 2025 through March 2026, and Q4 means the fourth quarter covering January, February, and March 2026. When TCS announced results on April 9, it was reporting revenue of Rs 70,698 crore and net profit of Rs 13,718 crore earned during those specific three months. According to BSE filings, results season for IT typically runs from the second week of April through late April.

Company	Q4 FY26 Results Date	Status (as of April 20)
TCS	April 9, 2026	Declared
Wipro	April 16, 2026	Declared
HCLTech	April 21, 2026	Upcoming
Infosys	April 23, 2026	Upcoming

Which Five Numbers Should You Focus on When Reading IT Results?

When quarterly results come out, you will see dozens of figures on financial news channels and NSE data screens. Think of these five metrics as the five subjects on the report card, and feel free to ignore the rest until you build more familiarity with financial statements.

• Revenue (total income): Revenue refers to how much the company earned from clients during the quarter, and the growth rate compared to the same quarter last year matters more than the absolute rupee figure.
• Net profit, also called PAT: Profit After Tax (PAT) is what remains after the company pays all expenses, salaries, and income taxes, so think of PAT as the actual marks scored after every deduction.
• Operating margin: Operating margin is the percentage of revenue that turns into operating profit. For instance, TCS reported a 25% operating margin in Q4 FY26, meaning Rs 25 out of every Rs 100 earned became operating profit.
• Deal wins measured by TCV: Total Contract Value (TCV) refers to the aggregate value of new client contracts signed during the quarter, and high TCV signals future revenue potential much like a student’s college acceptance signals career prospects.
• Headcount change: Tracking whether the company is hiring or reducing workforce provides a forward-looking signal, because IT companies with growing headcount are usually preparing for more project work ahead.

How Do These Numbers Look for TCS and Wipro in Q4 FY26?

TCS reported on April 9 and Wipro followed on April 16. According to BSE filings, here is what their report cards show for the January to March 2026 quarter.

Metric	TCS Q4 FY26	Wipro Q4 FY26
Revenue	Rs 70,698 crore (up 9.6% YoY)	Rs 24,236 crore (up 7.7% YoY)
Net Profit (PAT)	Rs 13,718 crore (up 12% YoY)	Rs 3,502 crore (down 1.9% YoY)
Operating Margin	25.0% (highest in 4 years)	17.3% (down 0.3% QoQ)
Deal Wins (TCV)	2 billion (among highest ever)	Not separately disclosed
Dividend	Rs 31 per share	Rs 11/share + Rs 15,000 crore buyback

Indeed, TCS scored well across subjects with revenue up 9.6%, profit rising to Rs 13,718 crore, margins at a four-year high of 25.0%, and record deal wins totalling 2 billion. Wipro’s revenue grew 7.7% YoY but net profit dipped 1.9% versus last year, though it improved 12% from Q3 FY26. Of course, two companies within the same industry can deliver very different results, and that is normal.

What Does “Year-on-Year” vs “Quarter-on-Quarter” Mean?

Year-on-Year (YoY) compares this quarter to the same quarter last year, for example TCS Q4 FY26 revenue of Rs 70,698 crore versus Q4 FY25 revenue of Rs 64,479 crore.

In fact, Gives a about 10% YoY growth rate. Quarter-on-Quarter (QoQ) compares to the immediately previous quarter within the same year.

Indeed, Think of it like comparing your cricket batting average across tournaments. YoY is like comparing your Ranji Trophy average this year to last year’s Ranji Trophy, because conditions were similar across both seasons. QoQ is like comparing the semi-final to the quarter-final of the same tournament. Notably, Indian IT companies typically report a seasonally weak Q3 (October-December) due to the festive holiday season and fewer billing days.

Notably, Means Q4 almost always looks better QoQ due to seasonal patterns rather than genuine operational improvement.

Should You Buy, Sell, or Do Nothing After IT Results Are Announced?

If you hold IT stocks or an IT sector mutual fund as part of a portfolio with a 3-year or longer horizon, one quarter’s results should rarely change your plan. As per NSE data, the Nifty IT index regularly swings 3% to 5% on results day.

Clearly, such movement is short-term noise driven by whether the numbers beat or missed analyst expectations already priced into stock valuations.

Clearly, quarterly results serve as a diagnostic tool for checking business health, not as a timing signal for buys and sells. SEBI data shows that long-term equity investors who hold for over 5 years have historically earned positive real returns across market cycles. Check the trend over four to eight consecutive quarters rather than reacting to one in isolation. You can track how IT sector valuations compare over time using the PE ratio calculator on Maxiom Wealth.

To Sum Up

Quarterly results are a company’s report card. For TCS, Infosys, Wipro, and HCLTech reporting Q4 FY26 right now, focus on five metrics: revenue growth (TCS at about 10% YoY), net profit or PAT (TCS at Rs 13,718 crore), operating margins (TCS at 25%), deal wins by TCV (2 billion for TCS), and headcount changes. Prefer YoY over QoQ for the truest picture. Unless the trend deteriorates across multiple consecutive quarters, staying the course remains the best approach for long-term investors.

Frequently Asked Questions

I own an IT mutual fund but not individual stocks, so do results matter to me?
Yes, indirectly, because your fund holds shares of TCS, Infosys, Wipro, and HCLTech in its portfolio. Strong results across the IT sector will lift your fund’s Net Asset Value (NAV), but your fund manager tracks these numbers so no individual action is needed on your part.

Why did TCS stock not rally despite reporting nearly 12% profit growth?
As a result of how stock markets work, share prices on the NSE and BSE react to expectations rather than absolute numbers. If analysts expected 14% growth and TCS delivered nearly 12%, the stock may decline because the actual outcome fell below what was already priced into the share valuation.

What is TCV and why do IT investors track it closely?
Total Contract Value (TCV) represents the aggregate value of new client deals signed during the quarter. TCS reported 2 billion in Q4 FY26 deal wins, which is among the highest quarterly TCV ever recorded by an Indian IT company and signals strong revenue visibility for the coming quarters of FY27.