IT Services Q4 Results Review: A Weak Closing Of The Year, Says ICICI Securities — Here's Why

Macroeconomic volatility impacted discretionary spending and several key verticals (retail, manufacturing, automotive) significantly. The correlation between incremental revenue and TCV is also lacking alignment. Hence, the hopes of FY26 gathering growth momentum and revenue growth faring better than FY25 are being pushed to FY27..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..ICICI Securities Report.IT sector reported muted Q4 FY25 revenue growth with most of the coverage stocks (especially the engineering research and development pack), reporting a miss. Total contract value and margin execution fared better than expectations for Q4 FY25/FY25. Headcount addition picked up marginally QoQ but recovered significantly for full year. A few companies dropping guidance and delaying wage hikes were few negatives. A few silver linings included: Tier-II outperforming the pack with continued momentum – namely Persistent Systems, Mphasis and Coforge. Decent FY25 revenue growth recovery vs FY24. AI-led traction in revenue growth and deal wins. However, macroeconomic volatility impacted discretionary spending and several key verticals (retail, manufacturing, automotive) significantly. The correlation between incremental revenue and TCV is also lacking alignment. Hence, the hopes of FY26 gathering growth momentum and revenue growth faring better than FY25 are being pushed to FY27..Click on the attachment to read the full report:.Sobha Can Rally 37% Says Motilal Oswal On Strong Growth Prospects.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 Services Q4 Results Review: A Weak Closing Of The Year, Says ICICI Securities — Here's Why

A few companies dropping guidance and delaying wage hikes were few negatives, adds the brokerage.

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