# IT firms face muted Q2, HCLTech, mid-caps to lead 2026-09-30T07:09:33+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 3 independent outlets Brokerages Kotak Institutional Equities and Jefferies expect a muted Q2FY27 (July to September 2026) for India's top IT firms, with HCLTech the likely outperformer. Kotak forecasts HCLTech organic revenue growth of 2% quarter-on-quarter, while Infosys may grow 1.1% and TCS just 0.5%. Jefferies said this will be the weakest second quarter for large IT firms in three years, with large-caps growing 0.5% QoQ constant currency. Mid-sized firms are expected to fare better, led by Persistent Systems at 7% QoQ growth. TCS will report results on 8 October 2026, with the board also considering an interim dividend. Infosys results are due on 22 to 23 October 2026. Both brokerages cite AI-led deflation and macroeconomic weakness as key headwinds. Kotak said demand has neither improved nor worsened since the June quarter, while Jefferies flagged leadership changes and deal conversions as investor focus areas. The Nifty IT index rose over 2% in early trade on Wednesday (30 September). Update, 30 September 2026: BusinessLine confirms Kotak's muted Q2 outlook and reports the Nifty IT index rose over 2% on 30 September ahead of earnings. It adds Kotak's estimate of gross deflation of around 7% and net deflation of 3.5% for IT companies, alongside margin pressure from pricing and forex losses for firms including Tech Mahindra and LTM. ## Indian Opinion Analysis All three outlets frame the Q2FY27 IT earnings preview around the same Kotak and Jefferies brokerages, producing substantially uniform coverage. Mint and BusinessLine lead with Kotak's muted-growth forecast and the AI-deflation macro view, while BusinessToday opens with Jefferies's deal-focus items per company. The difference is purely editorial front-loading: no outlet challenges the brokerages, omits a significant number, or adds a competing narrative. The balanced reading is that market watchers are aligned on a weak quarter, with HCLTech the only large-cap outperformer and mid-tier firms (Coforge, Persistent) expected to lead. TCS results are due 8 October and Infosys on 23 October. ## Coverage Coverage: 3 sources, 3 neutral - livemint.com (neutral report) Leads with Kotak's muted demand view and company-wise forecasts, straight brokerage reportage. - businesstoday.in (neutral report) Opens with Jefferies's 3-year weak Q2 claim and investor focus areas per firm, no slant. - thehindubusinessline.com (neutral report) Leads with stock rally but pivots to Kotak's muted growth outlook and AI deflation detail. This brief was synthesised by AI from the 3 sources linked above, so one read covers every framing they carry. Tags: HCLTech, Infosys, Kotak Institutional Equities, TCS, Tech Mahindra, Wipro Canonical: https://indianopinion.org/kotak-jefferies-see-muted-it-sector-q2-despite-hcltech-strength/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/kotak-jefferies-see-muted-it-sector-q2-despite-hcltech-strength/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/