IT Stocks Q2 FY27: HCL Tech Seen Leading Large Peers On Growth, Kotak Neo Research Says
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Kotak Neo Research expects a muted Q2 FY27 for Indian IT companies, with HCL Technologies likely to lead Tier-1 peers on organic growth. TCS, Infosys and Tech Mahindra are also expected to post sequential growth, while demand, deal wins and FY27 guidance remain key factors to watch.
Indian IT companies are heading into the Q2 FY27 earnings season with growth expected to remain subdued, according to Kotak Neo Research. Among the large-cap IT companies, HCL Technologies is expected to report the strongest organic sequential growth in the September quarter, while TCS is likely to see a more modest performance.
The firm expects the September quarter to remain relatively muted for the sector, with client spending still cautious. The focus will be on revenue growth, deal activity and management commentary as TCS, Infosys, HCL Tech, Tech Mahindra and other IT companies begin reporting their quarterly numbers.
IT Stocks Q2 FY27: HCL Tech, Infosys, TCS Growth Estimates
HCL Technologies is expected to lead the Tier-1 IT companies with around 2% organic sequential revenue growth in Q2 FY27, according to Kotak Neo Research.
Infosys is expected to report around 1.1% organic sequential growth during the quarter. Kotak Neo Research expects the company to lower the upper end of its FY27 revenue growth guidance to 2.5% from 3% earlier, while retaining the lower end at 1.5%.
For TCS, Kotak Neo Research expects around 0.5% organic sequential growth in the September quarter. Deal wins and the company's commentary on demand will remain important areas to watch during the results.
Tech Mahindra is expected to report around 1.6% sequential growth, supported by the ramp-up of large deals, according to Kotak Neo Research.
The estimates point to a mixed quarter for the large IT companies, with HCL Tech and Tech Mahindra expected to see relatively stronger growth than TCS and Infosys.
IT Sector Outlook: What To Watch In Q2 FY27 Results
The September quarter will provide an update on how technology spending is holding up across key client segments. Deal wins, discretionary spending and management commentary on the second half of FY27 will be closely watched.
AI-led productivity gains are also becoming a factor for the sector. Kotak Neo Research estimates that AI adoption could have a net deflationary impact of around 3%-3.5% annually on IT services revenue growth between FY27 and FY29.
For investors tracking IT stocks, the Q2 results will therefore be important not only for the reported numbers but also for management commentary on demand, deal pipelines, pricing and revenue growth expectations for the rest of FY27.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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