TCS, R Systems Lead Systematix Picks Amid Cautious Q3 IT Sector Outlook — Check Rating, Target Price

With no visible signs of demand recovery and a structurally weaker H2 FY26, Infosys and HCLTech are expected to maintain FY26 revenue guidance..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. .Systematix Report.Brokerage expects seasonal headwinds to weigh on Q3 FY26 performance across IT services coverage. Large-cap IT firms are projected to post sequential USD revenue growth of 0–2%, impacted by furloughs and fewer working days, consistent with historical trends.Demand conditions remain largely unchanged, with subdued discretionary spending and cautious client sentiment amid macro uncertainty and ongoing AI-led technology transitions. BFSI is expected to show gradual recovery, while healthcare, manufacturing, and retail verticals remain weak.Deal activity should stay healthy, driven by vendor consolidation and cost takeout engagements. Ebit margins are likely to remain range-bound as INR depreciation and AI-driven productivity gains are offset by wage hikes and lower utilisation due to furloughs.With no visible signs of demand recovery and a structurally weaker H2 FY26, Infosys Ltd. and HCLTech are expected to maintain FY26 revenue guidance. Brokerage maintains a cautious stance on the IT sector, favouring TCS among tier-1 peers and R Systems International Ltd. in the small-cap space..Click on the attachment to read the full report:.L&T, Siemens Energy Among Motilal Oswal's Pick In Capital Goods; BEL Tops Defence In Q3 Results Preview.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.

TCS, R Systems Lead Systematix Picks Amid Cautious Q3 IT Sector Outlook — Check Rating, Target Price

IT stocks have rebounded in recent sessions, though the brokerage remains selective and value-focused.

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