The brokerage sees easing AI disruption fears as positive, but limited near-term upside for tier-1 IT, despite reasonable valuations, given the higher-rate and subdued discretionary-spending environment. Most stocks appear fairly priced; a meaningful re-rating likely requires clearer growth acceleration, potentially to get clear by Q4 FY27 commentary, adds the brokerage.
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Dolat Capital Report
According to domestic brokerage firm Dolat Capital, IT Services commentary remains constructive, led by AI transformation, outcomebased deals and deeper domain expertise/FDEs.
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Accenture's FY27 organic growth guidance of 1%-3.5% (overall 3–6% CC) is supportive, with AI moving from pilots towards scaled enterprise deployments; however, it also noted that discretionary spending has not meaningfully improved.
The brokerage sees easing AI disruption fears as positive, but limited near-term upside for tier-1 IT, despite reasonable valuations, given the higher-rate and subdued discretionary-spending environment. Most stocks appear fairly priced; a meaningful re-rating likely requires clearer growth acceleration, potentially to get clear by Q4 FY27 commentary, adds the brokerage.
The brokerage expects tier-1 names to report constant currency growth between flat to +3% QoQ, while tier-2 names to deliver 0.6% to +7% QoQ CC growth organically.
Cross-currency impact on reported growth is negative, ranging from -23bps to -4bps. Margin trajectory will remain mixed (from -126bps to +272bps), reflecting wage hike decisions, GTM and AI investments, operational efficiency and f/x fluctuations.
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Key Commentary would be: macro pressures (M.E conflict & Int. rate hike), AI-led pricing disruption and client decision making.
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