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Anand Rathi Report
In this report, Anand Rathi highlights that within top-six, LTMindtree Ltd. is expected to show highest organic revenue growth with 1.4% QoQ constant currency, albeit weaker than expected.
Infosys Ltd. (-0.6% Qoq cc) and HCLTech Ltd. (-0.3%) are expected to have in-line seasonally weakquarter. Tata Consultancy Services Ltd. (1% cc QoQ; 0.6% organic) and Wipro Ltd. (0.5%; -1.1%) sequential cc growthbenefits from acquisitions.
Infosys margins expected to be ~21%, while HCLTech's margins (17.7%) to be impacted by wage hike and restructuring charges, partially offset by currency tailwinds.
LTMindtree's margins (15.4% vs16.1% in Q3 FY26) impactedby wagehikes, fewer workingdaysand client specific issues.
Within midcap IT names, Persistent Systems Ltd. is expected to report strong sequential cc growth of ~4.0%, followed by Mphasis at 3.1% QoQ cc growth. FirstSource Solutions (4.0% cc q/q; 2.7% organic) sequential cc growth benefits from Telemedik acquisition.
Top picks and investment rationale
HCLTech
Leading growth among top five IT services firms (median QoQ USD CQGR of 1.3% vs 0.4% peer median over last eight quarters), supported by a diversified revenue engine across IT Services (~74%), ER&D (~17%), and HCLSoftware (~10).
Infosys
Sustained growth visibility supported by large-deal momentum (~$5 billion total contract value including the ~$1.6 billion NHS win), and accelerating deal activity in FS and Energy, while ~21% margin stability and disciplined M&A supports earnings expansion.
LTIMindtree
Despite revenues higher correlation to discretionary spend (~60-70%), in a weak discretionary demand environment, LTMindtree has been able to capture market share in cost take-out deals, reinforcing the new incumbent's execution capabilities.
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