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IT Q2 Result Preview— HDFC Securities Maintains Cautiously Optimistic View; Upgrades Infosys, HCLTech To 'Buy'
The valuations for tier-1 IT companies appear reasonable, while mid-tier valuations continue to be elevated, adds HDFC Securities.
06 Oct 2025, 01:19 PM IST 
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The IT sector valuation at 21.7x is ~14% below its five years average (25.4x) and ~2% above the 10 years average (21.2x). (Photo Source: pexels)
The IT sector is expected to report subdued revenue growth in an otherwise seasonally strong quarter, as persistent global macroeconomic uncertainty and recent US tariff measures continue to dampen discretionary spending. Clients remain cautious, resulting in slower growth and intensified pricing pressure, although deal activity witnessed some improvement towards the end of the quarter.
