Now Reading: Kotak sees muted Q2 for IT firms, HCLTech to lead
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Kotak sees muted Q2 for IT firms, HCLTech to lead
The Story in Brief
Kotak Institutional Equities expects muted revenue growth for large Indian IT companies in Q2 FY27, with HCLTech the likely outperformer at 2% quarter-on-quarter organic growth, Livemint and BusinessLine report. Infosys is forecast at 1.1% and TCS at 0.5%. Jefferies said large-cap growth of 0.5% QoQ constant currency would make this the weakest second quarter in three years, BusinessToday reports.
Mid-sized and hybrid firms are expected to fare better. Kotak sees Persistent Systems leading at 7% QoQ growth, followed by Coforge at 4.5% and Mphasis at 3.5%, BusinessLine reports. Kotak identified AI-led deflation and weak macroeconomic conditions as key headwinds, estimating gross deflation of around 7% and net deflation of 3.5% for IT companies, and expects meaningful forex losses for Tech Mahindra, LTM, Coforge and Hexaware.
TCS will report results on 8 October and its board will also consider an interim dividend, Livemint reports. HCL Technologies results are due on 12 October, and Infosys on 23 October. NDTV Profit reports IT stocks rose in early trade on 1 October after Morgan Stanley initiated coverage on Persistent Systems and Hexaware with an 'Overweight' rating.
Indian Opinion Analysis
All five sources cover the IT Q2 preview as straight market reporting with no discernible editorial slant. Livemint, BusinessLine and NDTV Profit lead with Kotak's growth estimates, while BusinessToday also highlights Jefferies' 'weakest Q2 in three years' framing. NDTV Profit adds a separate catalyst: Morgan Stanley's 'Overweight' initiation on Persistent Systems and Hexaware, which drove the 1 October rally. The uniform neutral coverage means the key divergence is which broker each outlet led with. The balanced reading: Kotak's muted growth forecast is widely shared, but the 1 October stock move shows investors are reacting to fresh analyst endorsements of mid-tier challengers. TCS results on 8 October will be the first concrete test of these estimates.
Coverage: 5 sources, 5 neutral
Sources (5): livemint.com (neutral report), businesstoday.in (neutral report), thehindubusinessline.com (neutral report), livemint.com (2) (neutral report), ndtvprofit.com (neutral report)
This brief was synthesised by AI from the 5 sources linked above, so one read covers every framing they carry. Methodology and corrections.
Update, 1 October 2026: this story now draws on 5 sources.
