Muted Q1 likely for India's IT firms, says Jefferies; FY27 rev growth outlook in focus

Tech Mahindra

01/07/2026 05:30

** Jefferies expects flat q/q revenue for India's IT sector, despite Q1 being seasonally strong
** Clients' IT services budgets remain tight, putting pressure on discretionary spending, says brokerage
** Adds Wipro WIPR.NS, TCS TCS.NS, LTM LTIM.NS likely to report muted rev growth, while Infosys INFY.NS, Tech Mahindra TEML.NS expected to outperform
** FY27 rev growth outlook in focus, with INFY expected to hike estimates by 100 bps y/y; HCLTech HCLT.NS projected to maintain guidance - brokerage
** Cross-currency impact likely to be within 20 bps, though cos may report large hedging losses in Q1 due to sharp INR depreciation; wage hikes to negatively impact TCS' margins by 120 bps - brokerage
** India's IT index .NIFTYIT last up 0.08%
** YTD, NIFTYIT down 30.5% vs 8.4% decline in benchmark index .NSEI
     

 (Reporting by Abhirami G in Bengaluru)
 ((abhirami.g@thomsonreuters.com))