TCS vs HCLTech: Brokerage analysis, Q3 Results and share price history

New Delhi: India's IT industry is once again in the focus of Stock Market investors. After the results of the third quarter, two big IT companies of the country Tata Consultancy Services (TCS) and HCL Technologies are in the news. The results of both companies have been affected by the new Labour Code, which has shown pressure on profits. However, the picture is not completely identical. While TCS is betting on large investments in Gen AI for the future, HCLTech has given a positive signal to the market by increasing its services guidance. In such a situation, the big question faced by investors is which stock can be a better option from the perspective of the year 2026.

Brokerage firm Nuvama has given Buy rating for HCLTech shares and 'Hold' ratings on TCS stock. Systematix has given TCS a 'Buy' rating. At the same time, Centrum has advised investors to purchase HCL stocks.

Nuvama Institutional Equities has a slightly balanced approach. Nuvama believes that TCS is currently trading at attractive valuations and its investments in Gen AI are building a strong foundation for the future. However, in the case of HCLTech, he says that there is limited scope for further growth at the current prices.

In the third quarter, TCS's consolidated net profit fell 14 percent year-on-year to Rs 10,657 crore. However, taking away one-time expenses, the profit increased by 8.5 percent to Rs 13,438 million. Revenue from the company's operations jumped by 5 percent to Rs 67,087 crore. Due to the new labour code, a lump sum expenditure of about Rs 2,128 million was incurred on the company.

HCL Tech's consolidated net profit declined 11 percent to Rs 4,076 crore in the third quarter. However, the company performed better on the revenue front. The income from the company's operations increased by 13 percent to Rs 33,872 crore. This is the reason why HCL Tech is considered the fastest growing company in the IT services large-cap space.

Dividend

TCS declared a special dividend of Rs 46 and a third interim dividend of Rs 11, giving a big gift to investors. Thus, a total dividend of Rs 79 per share has been given so far in FY26. At the same time, HCLTech has declared an interim dividend of Rs 12 per share for FY26.

Add TV9 English As A Trusted Source

TCS's stock has fallen nearly 24 percent in the last one year. In the last five trading days too, it showed a weakness of about 2 percent. On the other hand, the stock of HCLTech has risen by 2 percent in the last five days, although it has fallen by about 16 percent in one year. If you look at the long-term perspective on valuation and Gen AI, TCS seems to be a strong bet for 2026.