'Buy' Infosys, LTIMindtree, 'Hold' TCS, Cyient Among Others Recommends Anand Rathi; IT Services Q1 Review

India’s mid-cap IT sector continues to outshine its large-cap counterparts, driven by sharper AI adoption, BFSI momentum, and robust deal pipelines, signaling strong medium-term growth prospects..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..Anand Rathi Report.In Q1 FY26, the Indian IT sector delivered a soft performance, with tier-2 firms like Coforge outperforming large players in both revenue growth and execution. Largecap companies such as TCS, Infosys, and HCLTech were impacted by macroeconomic uncertainty that delayed discretionary spending, leading to muted growth. However, strong deal wins especially at Infosys and HCLTech indicates improvement in demand, prompting both firms to raise the lower end of their FY26 revenue guidance. Tier-II players meanwhile maintained their strong growth outlooks. GenAI, cloud, and digital transformation remained key drivers of interest but monetization continues to lag as clients focus on pilots rather than scaled adoption. The absence of a new tech cycle further added to the deflationary pressure on legacy service lines. Margins contracted across the board. Tier-1 companies were hit by wage hikes, low utilization, and upfront GenAI investments, while Tier-2 firms saw sharper declines due to pricing and volume softness. Despite margin pressures, firms continue to invest heavily in AI capabilities, platforms, and talent. Sector-wise, BFSI, telecom, and healthcare showed resilience while consumer and manufacturing were weak due to tariff-related concerns. Global peers like Accenture and Cognizant raising guidance has added to optimism for a gradual H2 FY26 recovery led by GenAIdriven tech spending..Click on the attachment to read the full report:.Motilal Oswal Stays 'Neutral' On Mahindra Lifespace — Here's Why.DISCLAIMERThis 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.

'Buy' Infosys, LTIMindtree, 'Hold' TCS, Cyient Among Others Recommends Anand Rathi; IT Services Q1 Review

Global peers like Accenture and Cognizant raising guidance has added to optimism for a gradual H2 FY26 recovery led by GenAIdriven tech spending, adds Anand Rathi

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