Goldman Sachs On Indian IT: LTM, Wipro and Info Edge are entering the next phase with very different earnings drivers, according to Goldman Sachs.
While LTM expects growth to hold steady and margins to improve, Wipro continues to face subdued near-term growth and AI-related pressure. Info Edge, meanwhile, is benefiting from premium hiring, new products and a strengthening real estate classifieds business.
Here are the key takeaways from Goldman Sachs' management interactions at its Asia Leaders Conference 2026.
LTM: Growth Holds Steady, Margins Could Improve
Goldman Sachs remains Neutral on LTM. Management expects revenue growth this year to be broadly similar to last year, implying around 2% CQGR for the remainder of the year, with the third quarter expected to be stronger than the second.
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The near-term improvement should come from deal ramp-ups. A retail/consumer deal won in Q1 is expected to start scaling in Q3, while business from a key technology account should contribute partly in Q2 and more substantially in Q3.
The CBDT engagement is also progressing, with the hardware component gradually ramping up and the majority of revenue expected in Q3. Work has already begun on the software component.
BFSI Recovery Offers A Bright Spot
LTM's BFSI vertical is showing month-on-month improvement, although its largest BFSI account continues to weigh on overall growth.
The travel business remains weak, keeping consumer growth subdued, while manufacturing is performing well and the technology vertical is recovering. Management is also expanding its client base across BFSI and technology.
LTM expects EBIT margins to improve in FY27, helped by further organic margin expansion. The announced Randstad acquisition is expected to be integrated in Q3FY27.
AI Pressure Is Selective
Goldman said LTM acknowledged some pockets of industry demand pressure from AI, but management also highlighted several areas where growth opportunities remain.
That leaves the near-term picture more about steady growth and margin recovery than a major acceleration.
Wipro: Growth Still Waiting For A Turn
Goldman Sachs maintains its ‘Sell' rating on Wipro with a target price of Rs 172, pointing to subdued near-term growth and persistent client-specific challenges.
The demand environment remains stable, but discretionary spending is still muted. Recently ramped-up deals could provide some support to revenue growth, while BFSI remains resilient with a strong pipeline.
Healthcare, however, is facing pressure from policy changes.
Margins May Have Bottomed
Goldman expects 1QFY27 to mark the bottom for Wipro's margins, with management seeing room for improvement from here.
Deal activity remains largely focused on cost take-outs, while competitive intensity remains high. The brokerage also expects the impact of AI-driven deflation to take a few more quarters to fully play out.
At the same time, management expects technology spending from hyperscalers and AI frontier companies to eventually flow through to IT services.
Info Edge: Premium Hiring And New Products Drive Growth
Goldman Sachs maintains a ‘Buy' rating on Info Edge with a target price of Rs 1,410, with the brokerage highlighting multiple growth engines across its portfolio.
The recruitment business continues to benefit from premium hiring and new products, with premium hiring growing 25–30% year-on-year. The business remains diversified across IT, technology, BPO, GCCs and non-IT segments.
AI-powered recruitment product AI-Rex is also gaining traction, with nearly 400 paid clients.
JobHai Adds Another Growth Lever
Info Edge's JobHai platform, launched in May 2026, is targeting a doubling of revenue in FY27 compared with FY26.
The B2C recruitment business is also seeing strong growth alongside improving margins.
Meanwhile, the company's real estate classifieds business continues to lead the market in traffic and supply. Management expects 20–25% sustainable annual billings growth in the segment.
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