IT Q2 Results Preview — Tech Mahindra, Coforge Remains Motilal Oswal's Top Pick Ahead Of Q2 Earnings

Motilal Oswal expects margins to remain range-bound and supply-side pressures to stay muted; however, meaningful margin gains are limited ahead as they are being impacted by multiple fronts, including pricing, change in delivery models, client behavior, and the GenAI transition..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.We expect Q2 FY26 to be a muted quarter for IT services, with no material improvement over the past quarter. As clients reel under macro and tariff uncertainty, we believe there is hesitation to commit additional dollars to any large initiatives. We expect Q2 numbers to reflect this, with QoQ cc growth expected in the range of 0.3% to 2.4% for large-caps and mid-caps expected to outperform once again with a growth range of -0.5% to 6.0%. For Q2, we expect aggregate revenue for our coverage universe to grow by 6.0% YoY, while Ebit and PAT are likely to grow by 5.2% and 5.5% YoY (all in INR terms), respectively..We prefer Tech Mahindra Ltd., as we see early signs of transformation under the new leadership and improving execution in BFSI. We believe Tech Mahindra's transformation remains relatively decoupled from discretionary spending. We continue to like HCLTech for its all-weather portfolio.In mid-caps, Coforge and Hexaware remain our top picks. The previous downcycle showed that mid-tier firms can thrive in cost-focused environments. Coforge’s Sabre deal shows mid-tier companies now have both scale and solution maturity to win cost-saving deals. Hexaware, meanwhile, is gaining share through consolidation deals in Financial vertical. As pressures in large accounts appear to be tapering, an improving margin trajectory bodes well for the company..Click on the attachment to read the full report:.'Buy' Astral Shares Maintains Motilal Oswal, Sees Upto 21% Upside — Check Target Price.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.

IT Q2 Results Preview — Tech Mahindra, Coforge Remains Motilal Oswal's Top Pick Ahead Of Q2 Earnings

Indian IT Q2 Results Preview: FY26 is unlikely to see significant acceleration vs FY25, adds Motilal Oswal

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