Motilal Oswal sees earnings rebound, upside for Indian IT firms in 6-9 months

Mphasis

03/12/2025 06:17

** India's IT sub-index .NIFTYIT is the sole gainer among 16 major sectors, rises 0.85%

** Motilal Oswal sees IT services hitting an inflection point in the next 6-9 months, driving strong growth in H2 of FY27 and full-scale uptake in FY28 as enterprises move from pilots to broad deployment

** Notes that the sector trades at a decade-low valuation despite stable profitability, offering asymmetric upside

** Last week, brokerage upgraded Infosys INFY.NS to "buy" from "neutral" as it could be a key beneficiary of enterprise-wide AI spends

** It also upgraded Mphasis MBFL.NS and Zensar ZENT.NS to "buy" from "neutral"; Wipro WIPR.NS revised to "neutral" from "sell"

** Says IT services will stabilize and then grow strongly by FY28 as cloud spending normalizes

** YTD, IT sub-index down 12.7% vs Nifty 50's .NSEI 9.7% rise

 (Reporting by Urvi Dugar in Bengaluru)

 ((UrviManoj.Dugar@thomsonreuters.com;))