TCS, Infosys, HCLTech, Coforge — Top Stock Picks By Motilal Oswal; IT Q1 Results Preview
Motilal Oswal expects margins to be range-bound and supply-side pressures to remain muted; however, meaningful margin gains are restricted by low growth, visa costs and pressure from a strong INR vs USD.
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.
Motilal Oswal Report
Q1 FY26 has been an uncertain, albeit better-than-expected quarter for IT services, in our view. While a host of geopolitical events as well as tariff uncertainty would have played spoilsport on notable deal signings, widespread client deferrals/ ramp-downs have largely been avoided.
We expect Q1 numbers to reflect this reality: QoQ revenue and deal total contract value across large-caps could be unexciting (expect QoQ constant currency growth range of -2.5% to +1.5% for large-caps.
Midcaps are expected to outperform once again with a growth range of -2.0% to +7.0%).
A weak dollar against a basket of currencies will lead to 100-200bp of QoQ cross-currency tailwinds, aiding estimates.
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