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Indian IT Q2: Large-Caps Face Weakest Growth in 3 Years; Mid-Caps Poised to Outperform
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CNBC TV18•02-10-2026, 11:18
Indian IT Q2: Large-Caps Face Weakest Growth in 3 Years; Mid-Caps Poised to Outperform
- •Large-cap Indian IT firms are projected to report their weakest quarterly growth in three years for Q2FY27, with demand remaining in a "status quo" state.
- •Mid-tier IT vendors are expected to outpace large-cap peers, driven by market-share gains and the ramp-up of large deals, with Persistent Systems and Coforge showing strong growth estimates.
- •Acquisitions are anticipated to significantly contribute to reported growth for several IT companies, including Coforge, HCL Technologies, and Wipro.
- •Infosys is expected to cut its FY27 revenue growth guidance due to a European automotive client ramp-down and slower volume conversion.
- •HCL Technologies may keep its organic growth outlook largely unchanged, while Accenture's positive guidance highlights the growing importance of AI-related work for Indian IT firms.
Key Questions Answered
According to the CNBC-TV18 poll, sequential constant-currency revenue growth for large-cap firms in Q2FY27 is estimated at 0.5% for TCS, 1.4% for Infosys, a 0.9% decline for Wipro, 2.5% for HCL Technologies, and 1.5% for Tech Mahindra.
Infosys is expected to lower its constant-currency revenue growth guidance to 1%-2% or 1.5%-2.5% from the previous 1.5%-3% range due to a ramp-down by a European automotive client and slower volume conversion.
Mid-tier vendors like Persistent Systems, Mphasis, and Coforge are expected to outpace large-cap peers, with projected sequential constant-currency revenue growth of 6.7%, 3%, and 12.2% respectively.
