Coforge Ltd. is expected to emerge as the standout performer in the June quarter, with revenue growth far ahead of other major IT companies, even as the broader sector faces another challenging earnings season.
Bloomberg estimates peg Coforge's sequential revenue growth at 19.53% in the first quarter of FY27, the highest among the tier-1 and tier-2 IT companies tracked. Ebit is estimated to rise 12.66%, although net income could decline 11.1%.
The timeline for the Encora acquisition and management's outlook for the travel business are some key things to watch out for.
IT Sector Recovery Remains Elusive
The June quarter is unlikely to offer meaningful relief for IT stocks. Weak discretionary spending continues to weigh on demand, while AI-led efficiency gains are putting pressure on growth and pricing.
Deal wins, project ramp-ups and the ability of companies to monetise artificial intelligence will be among the biggest factors to watch.
ALSO READ: IT Sector Q1 Preview: Weak Growth, AI Commentary, FY27 Outlook In Focus
Among tier-1 companies, Infosys is expected to lead sequential revenue growth at 3.92%, followed by Tech Mahindra at 2.3%. TCS, HCLTech and Wipro are estimated to report growth of 1.4–1.6%.
TCS and Wipro could see sequential Ebit declines of around 3%, while Tech Mahindra's net income is estimated to jump nearly 19%.
Infosys, HCLTech Guidance In Focus
Infosys may trim the upper end of its FY27 constant-currency revenue growth guidance of 1.5–3.5% amid persistent uncertainties.
HCLTech could also revisit the upper end of its 1-4% growth outlook as project delays and weak telecom spending weigh. For Wipro, the key focus will be its second-quarter revenue guidance and the outlook for banking and financial services.
Among tier-2 companies, Persistent Systems is expected to post 4.17% sequential revenue growth, while Mphasis could grow 4.04%. Analysts will watch deal ramp-ups and margins at Mphasis, while Persistent's commentary on hi-tech deals and the Nagarro acquisition will be in focus.
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