One of the main sectors operating in India that contributes to the country's GDP and economic growth is information technology and IT-enabled services. In terms of revenue and turnover, the three largest Indian IT firms are TCS, Infosys, and HCL Technologies. In addition, these businesses have a large market capitalization, international clientele, and are listed among the National Stock Exchange's NIFTY 50 companies. Hence, this research paper analyses the performance of these three companies to have an insight into the performance of the Indian IT sector during the given observation period.

(Goswami, 2024) conducted a study of the top IT companies and found that the Indian IT sector was the top performer among all industries in India. His research was based on secondary data, which supports the purpose of the current study in the present situation.

(Forbes India, 2025) points out that TCS, Infosys and HCL Technologies are among the top three information technology companies in India. This ranking is based on the market capitalisation and the total number of active workforces in these companies as of 2025.

(Tendulkar, 2025) posted that the three companies mentioned in the study have posted significant growth in their earnings for the third quarter of 2024.

Objectives of Study:

1. To study and compare the performance of TCS, Infosys, and HCL in terms of sales made, expenses incurred, operating profit, and net profit made;
2. followed by earnings per share and reserves generated during the observation period.

Hypotheses of the Study:

1. (H0) There is no significant difference between the performances of TCS, Infosys and HCL.
2. (H1) There is a significant difference between the performances of TCS, Infosys and HCL.

Methodology of the study:

1. Sources of data: Secondary data collected throughout five years, from 2021 to 2025, served as the study's foundation.
2. Plan of analysis: Sales, expenses, operational profit, net profits and other incomes were used to examine the gathered data. Performance metrics also include earnings per share (EPS), and reserves have also been measured. The mean and CV have been used to examine the consistency and fluctuations in the performances of TCS, Infosys, and HCL data. Additionally, hypotheses are tested using chi-sqaure test and conclusions are drawn using a p-value. A lower P value indicates low fluctuations in the performance of the companies and a higher P value shows the opposite results. In other words, P = 0.5 or higher is not significant, P = 0.2-0.5 is, and P = 0.00-0.2 is extremely significant.
3. Limitations of the study: Only the preceding five years and the aforementioned parameters are included in the study. The suggestions are based on p-value results derived from the above indicators.

Profile of the companies:

• TCS: Leading companies throughout the world choose Tata Consultancy Services as their technology and digital transformation partner. TCS has maintained the highest levels of innovation, engineering prowess, and customer service since its founding in 1968. With roots in the Tata Group's history, TCS is committed to generating long-term value for its customers, investors, staff, and the community at large. The company has been named a top employer on six continents and employs more than 607,979 highly skilled consultants in 55 countries and 180 service delivery centers worldwide. Because of its capacity to quickly implement and scale new technologies, the company has established enduring relationships with its clients, assisting them in becoming businesses that are always adapting. From mainframes in the 1970s to artificial intelligence today, many of these connections have lasted for decades and have progressed through every technological cycle.TCS's fiscal year ended March 31, 2025, saw consolidated revenues of $30 billion USD.

• INFOSYS: In terms of consulting and digital services, Infosys is a global leader. Clients in 59 countries can use it to manage their digital transformation. Expertly guiding their clients through their digital journey, they have over 40 years of experience managing the systems and operations of multinational corporations. This is accomplished by providing the company with an AI-powered core that aids in giving the implementation of change top priority. Additionally, it gives the company the ability to use agile digital at scale to achieve previously unheard-of performance and customer satisfaction levels. By developing and sharing digital skills, knowledge, and concepts from its innovation ecosystem, the company's always-on learning agenda propels its ongoing progress. Infosys Limited was founded in 1981 with a meagre capital of $250 USD. The company was built on the tenet of creating and executing innovative ideas that propel companies forward and improve lives via corporate solutions. For more than 40 years, the company concentrated on developing innovative concepts and business solutions that help their clients advance. With more than 320,000 staff, Infosys is becoming more and more well-known worldwide. The business operates in 59 different countries worldwide.

• HCL: The company provides a wide range of solutions in the areas of cloud-native services, cybersecurity, digital and analytics services, DRYiCE, IoT works, industry software services, SIAM/XaaS products & advanced services. Financial services, manufacturing, telecommunications, retail and consumer packaged goods, media and entertainment, life sciences, insurance, capital markets, banking, mining, and natural resources are among the industries that HCL serves. Additionally, it provides services to the industrial manufacturing, energy and utility, oil and gas, aerospace and defense, automotive, chemical and process, hi-tech, healthcare, travel, transportation, hospitality, and logistics sectors. The business has a network of offices in the Americas, Asia-Pacific, the Middle East, Africa, and Europe in addition to operating worldwide offshore infrastructure.

1. Sales recorded:

(Source: Annual report from company website), (Table compiled by author)

It is watched from the table that all three companies have performed consistently during the observation period, and HCL is the best among them in terms of standard deviation, and TCS has the highest mean sales.

Conclusion: All three companies have performed steadily.

2. Chi-Square test for sales made

(Table compiled by author) (Significance of P value is at 0.05)

On an inquiry into the above table, it is observed that there is no significant difference between the actual and expected values of sales, which is supported by the P value of 0.

Conclusion: Null hypothesis is accepted.

3. Expenses incurred:

(Source: Annual report from company website), (Table compiled by author)

It is seen that all three companies have experienced an increase in the volume of expenses over the years, and TCS has been able to maintain a stable expense point, with a CV of 16.34, followed by HCL and Infosys at 17.69 and 18.40, respectively.

Conclusion: All the firms have maintained stable expenses

4. Chi-Square test for expenses

(Table compiled by author) (Significance of P value is at 0.05)

All three companies have incurred the same volume of expenses, and the difference between the actual and expected values is not significant. Denoted by the P value of 0.

Conclusion: Null hypothesis accepted.

5. Operating profit made:

(Source: Annual report from company website), (Table compiled by author)

The table discussed above points out the operating recorded. TCS has the highest mean operating profit, followed by Infosys and HCL, whereas HCL is the most stable in makin profits, pointed by CV of 9.24.

Conclusion: All the companies have recoreded constant profits.

6. Chi-Square test for operating profits

(Table compiled by author) (Significance of P value is at 0.05)

The table prepared here points out that there is no high variance in between actual and expected profits shown by the P value of 0.

Conclusion: Null hypothesis accepted.

7. Other incomes:

(Source: Annual report from company website), (Table compiled by author)

The information shown above depicts that all the firms have decent other income sources and HCL experienced the highest fluctuations at 37.36, whereas TCS was the least fulatuating one with 22.65.

Conclusion: All the firms have steady other income source as a supplement.

8. Chi-Square test for other incomes:

(Table compiled by author) (Significance of P value is at 0.05)

The chi-square table for other income sources shows that there is no varaiation among the actual and expected values.

Conclusion: Null hypothesis accepted.

9. Net profit made:

(Source: Annual report from company website), (Table compiled by author)

Even under net profits, TCS has the highest mean profits, followed by Infosys and HCL. But Infosys is the most stable in terms of net profit.

Conclusion: All the firms have maintained constant net profit margin.

10. Chi-Square test for net profit made:

(Table compiled by author) (Significance of P value is at 0.05)

The P value of 0 shown by the Chi-square calculation of net profits shows that even in net profit there is no significant variation in the anticipated and real values.

Conclusion: Null hypothesis accepted.

11. Earnings per share given by the firms

(Source: Annual report from company website), (Table compiled by author)

This indicates the amount generated per every equity share of the company, and TCS is the leader even in this category, but the other two firms made a similar amount of equity earnings. 

Conclusion: TCS has the highest earnings per share.

12. Chi-Square test for earnings per share

(Table compiled by author) (Significance of P value is at 0.05)

The P value of 1 indicates the difference in earnings per share among the companies, which is an indicator of shareholder and management attitude.

Conclusion: Null hypothesis rejected.

13. Reserves of profit:

(Source: Annual report from company website), (Table compiled by author)

The reserves are the accumulated profits made over a period of time to meet unforeseen risks. TCS leads the group even in this category, followed by Infosys and HCL. But Infosys has experienced fluctuations in reserves during the observation period.

Conclusion: All firms have significant amount of reserves

14. Chi-Square test for reserves of profit:

(Table compiled by author) (Significance of P value is at 0.05)

The table above points out that even in reserves of profits there are no significant diffreneces between the expected and actual values for the firms in the period of study.

Over the last few years, universities and colleges in Null hypothesis accepted.

Suggestions:

• The firms need to tap new markets for their products, and constant efforts need to be made in this respect.
• Firms have to keenly observe the major heads of expenses and have to bring in cost-cutting in major areas of expenses.
• Efforts need to be made to increase the operating profits and net profits on a consistent basis.
• Dependency on other sources of income has to be reduced.
• In terms of equity earnings and reserves, a much more liberal attitude has to be followed by Infosys and HCL, just like TCS.

On an overall basis it is observed that the IT sector of India has definetly experienced a robust growth post-pandemic and is still growing.

• https://www.tcs.com/investor-relations/financial-statements
• https://www.infosys.com/investors/reports-filings.html
• https://www.hcltech.com/investor-relations/annual-report
• https://www.moneycontrol.com/
• https://www.screener.in/
• Forbes India. (2025, June 30). Forbes India. Retrieved from Forbes India: https://www.forbesindia.com/article/explainers/top-10-it-companies-in-india/87143/1
• Goswami, J. (2024). Historical performance analysis of top IT companies. International Journal of Research in Finance and Management, 64-71.
• Tendulkar, R. (2025, January 18). CNBCTV18. Retrieved from CNBCTV18: https://www.cnbctv18.com/market/earnings/large-cap-it-companies-q3fy25-earnings-report-card-19542309.htm