Jefferies sees Indian IT downside risk after Accenture's muted guidance

Mphasis

19/12/2025 07:05

** Jefferies warns of downside risk to Indian IT stocks after Accenture ACN.N guides for 1.5-4.5% FY26 organic growth

** Says ACN's "steady-to-moderating" outlook signals limited discretionary spending despite GenAI project pickup

** Brokerage notes ACN retained 2-5% YoY revenue growth guidance after strong Q1, suggesting demand uncertainty

** Historically, lack of upward revision post-Q1 has preceded downward revisions for ACN- Jefferies

     ** Expects limited PE expansion for Indian IT and  reiterates selective stance on the sector

** Financial services vertical remains a bright spot for Coforge COFO.NS, TCS TCS.NS and Mphasis Ltd MBFL.NS

** ACN ended 1.4% lower after results, outlook

** On the day, IT index .NIFTYIT was flat vs Nifty 50's .NSEI 0.5% rise

** YTD, NIFTYIT down nearly 11% vs NSEI's 9.7% gains

 (Reporting by Brijesh Patel in Bengaluru)

 ((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))