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.
Nirmal Bang Report
Brokerage firm Nirmal Bang has maintained its underweight stance on the IT sector with Sell rating on Tata Consultancy Services Infosys, Wipro, HCLTech, Tech Mahindra, and LTIMindree and Hold rating on Coforge, Persistent Systens, and Mphasis.
Terminal value still lies in a leaner, AI-native services construct (NVIDIA's framing: 'intelligence' at ~50% of SDE cost), but the path there is painful and front-loaded.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Large cap IT services, excluding Tech Mahindra posted a disappointing average sequential constant currency growth of 0%, this was expected and was highlighted in the brokerage's Q4 FY26 review note.
At the other end, mid cap IT services did better than their large cap peers, in line with expectations, with a smaller market share to defend. They also benefitted by capturing deals, which they could not bid for earlier, by leveraging the AI lead delivery model.
According to Nirmal Bang, Indian IT services and technology worldwide is entering a phase where risks emerge simultaneously from both the ends of the current AI technology cycle.
In case one, accelerated AI adoption will begin to compress traditional services demand and reshape delivery models.
In case two, if AI fails to scale or deliver tangible returns, technology budgets globally are likely to tighten meaningfully.
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
