LTIMindtree, eClerx, Oracle Financial Services — Dolat Capital's Preferred Pick In IT, Internet, Software, KPO

Given the recent run-up in stock prices, despite some positive performance or commentary, we anticipate that a few companies including Tech Mahindra, KPIT, Newgen, and Eternal may experience downward pressure post-Q1 earnings..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..Dolat Capital Report.Q4 FY2025 results and commentary reveal heightened caution amongst key IT services players, largely due to tariff related disruptions affecting client behavior, resulting in deal signing delays and elongation of existing deal win conversion. While the tariff related uncertainty has witnessed a partial easing, e.g., deal between U.K and U.S in May-25, but noting end of tariff pause in July and elevated geo-political tensions, particularly in the Middle east, macro environment remains an overhang on client spend sentiments and is expected to remain constrained. For Q1 FY26, we expect a mixed performance, with Tier-1s reporting negative to low single digit growth in CC terms, while Tier-2 names to see negative to high single digit growth in CC terms. Q1 FY26 is an exceptional quarter to witness strong cross-currency tailwinds, with gains ranging from 60 bps to 340 bps, notably higher gains for names with significant presence in UK/Europe. Hence, CC revenue would be muted but reported Revenue will see better growth. Margin expansion would be restrictive due to muted growth, visa costs and wage hikes in select names. Overall, we expect margins to range between -122 bps to +54 bps for IT Services. .Key commentary in IT Services:FY26 outlook update, noting for any improvement in deal wins and conversions (for Infosys and HCLTech, expect guidance to remain unchanged at 0-3% and 2-5% resp.), Vertical commentary (BFSI, Auto/Manufacturing, Telecom), andUpdate on discretionary / GenAI spends..Click on the attachment to read the full report:.KRN Heat Exchanger Gets Dolat Capital's 'Buy' Initiation On Inexpensive Valuation, Supernormal Growth Outlook.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.

LTIMindtree, eClerx, Oracle Financial Services — Dolat Capital's Preferred Pick In IT, Internet, Software, KPO

For Q1, Dolat Capital expects a mixed performance, with tier-1s reporting negative to low single digit growth in CC terms, while Tier-2 names to see negative to high single digit growth in CC terms.

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LTIMindtree, eClerx, Oracle Financial Services — Dolat Capital's Preferred Pick In IT, Internet, Software, KPO

For Q1, Dolat Capital expects a mixed performance, with tier-1s reporting negative to low single digit growth in CC terms, while Tier-2 names to see negative to high single digit growth in CC terms.

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