TCS, Mphasis — Top Stock Picks By ICICI Securities Ahead Of IT Q1 Results

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The 90-day pause in the US-China tariff standoff has somewhat quelled economic nerves in largest market for IT companies (NIFTY IT has rallied ~10% over last two months).

Yet, this détente has failed to spur a corresponding uptick in new deal closures. Given the backdrop, we anticipate modest revenue growth for IT companies (except Coforge and Persistent) and the ER&D pack in Q1 FY26.

Cross currency tailwinds will likely provide ~100–200bps of QoQ lift to USD revenue growth. Demand remains sluggish in consumer, manufacturing, auto, logistics and communication verticals.

With the sector beset by a volatile macro environment, deal TCV shall be a crucial metric to be watched closely.

We remain cautious on the ER&D pack and prefer TCS (Add) and Mphasis (Add) – their valuations being comfortable, supported by healthy fundamentals.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.