Infosys, LTIMindtree, Birlasoft & More: Top Stocks To 'Buy' In IT Space For Long-Term Gains — Check Full List

The Indian IT services sector is positioned for a growth recovery starting in 2026, following a phase of muted performance from 2022 to 2025. The upcoming revival is expected to be underpinned by AI services, which are emerging as the key growth engine, as reflected in the increasing traction of AI-led deal wins..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. .HDFC Securities Institutional Equities.The Indian IT services sector is entering a new growth cycle powered by AI-led services, marking a strategic shift from traditional digital transformation to next-generation technologies. After a muted phase between FY22–FY25, the sector is poised for a revival starting FY26, with growth acceleration expected from FY27 onward. HDFC Securities projects a USD revenue CAGR of 6% and EPS CAGR of 12% over FY25–28, supported by strong deal momentum and easing macro headwinds..Outlook and valuations:The IT index is down 12% YTD but has rebounded by ~9% over the past month, supported by easing macro concerns, rupee depreciation, stronger traction in AI-led deal activity, and rising expectations of discretionary spend recovery and growth normalization into FY27/28E. The IT sector is projected to achieve a 6% USD revenue CAGR and an 12% EPS CAGR over FY25-28E, a marked improvement from the 3% revenue and 7% EPS growth seen in the past three years. The current sector valuations stand 6% below the five-year average of 25.4x and are at 36% discount to the five-year peak of 32 times, reflecting an upside potential for rerating as AI-driven revenue streams expand and growth gains momentum. The rupee depreciation will provide cushion to margins. We turn positive on the sector and increase EPS estimates by ~3.5% and multiples by ~13%. Consequently, LTIMindree, Birlasoft, Sonata, and Happiest Minds are upgraded to Buy, with Mphasis upgraded to Add. Top sector picks include Infosys, Tech Mahindra, and LTIMindree in the tier-1 segment, while Persistent, Mphasis, Birlasoft, and Sonata stand out among midtier IT companies..Top Picks in Tier-1 IT:Infosys (CMP Rs 1,616, TP Rs 2,060) – BUYHCLTech (CMP Rs 1,683, TP Rs 2,000) – BUYLTIMindtree (CMP Rs 6,292, TP Rs 7,500) – BUYMid-Tier Winners:Persistent Systems (CMP Rs 6,521, TP Rs 7,400) – ADDMphasis (CMP Rs 2,954, TP Rs 3,460) – ADDBirlasoft (CMP Rs 433, TP Rs 520) – BUY.Click on the attachment to read the full report:.Coforge Poised For 54% Upside Projects Motilal Oswal, Stock Remains Top Pick In Mid-Tier IT Players.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.

Infosys, LTIMindtree, Birlasoft & More: Top Stocks To 'Buy' In IT Space For Long-Term Gains — Check Full List

HDFC Securities: LTIMindtree, Birlasoft, Sonata, and Happiest Minds upgraded to Buy, with Mphasis upgraded to Add

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP