The brokerage estimates the top-six to grow at median growth of ~1.1% QoQ constant currency versus ~0.35% in Q1 FY27, with 2.9% YoY cc in both Q1 and Q2 FY27. Infosys and HCLTech benefit from ~50 basis points and ~110 bps of inorganic contribution respectively. Tata Consultancy Services expects a front-loaded quarter with strong July/August commentary, and September expected to be affected by rate hikes and Middle East weakness, particularly in manufacturing and retail.
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Anand Rathi Report
Anand Rathi expects Q2 FY27 to show a modest seasonal QoQ uptick for Indian IT rather than a demand revival.
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Accenture's latest print supports this view, with management stating that overall demand, including discretionary spending, did not meaningfully change in the quarter.
With deal flow dominated by cost take-out programs, execution, winning deals and ramping them up quickly will be the key differentiator for outperformance.
The brokerage estimates the top-six to grow at median growth of ~1.1% QoQ constant currency versus ~0.35% in Q1 FY27, with 2.9% YoY cc in both Q1 and Q2 FY27.
Infosys and HCLTech benefit from ~50 basis points and ~110 bps of inorganic contribution respectively.
Tata Consultancy Services expects a front-loaded quarter with strong July/August commentary, and September expected to be affected by rate hikes and Middle East weakness, particularly in manufacturing and retail.
Weakness is expected in Wipro (~2% organic decline), LTIMindtree (3% QoQ cc; ~2- 2.5% organic) continue to outperform amongst the midcaps.
Margins are broadly flat, as ~1% QoQ INR depreciation offers limited cushion against wage hikes, acquisition amortisation and AI investments; Tech Mahindra and LTIMindtree's hedge losses are a swing factor for profitability.
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