INDIA IT SERVICES : Tech Recap: Delayed cyclical recovery

Research evidence excerpt

INDIA IT SERVICES : Tech Recap: Delayed cyclical recovery

EQUITIES

IT SERVICES

INDIA IT SERVICES

Tech Recap: Delayed cyclical recovery

We analyse the quarterly results of 17 Indian IT Services companies (5 large-caps and 12 mid-caps)11 MAY 2026

Sector Research Report that have reported results so far to draw insights about the trends in the Indian IT services industry.

Production time: 16:41* (London time)

We review their performance vs that of peers and expectations. Our top picks: PSYS, TECHM, INFO.

Research Analysts & Publishing Entities

Kumar Rakesh Result season headline: Client issues delay recovery, AI divergence drive sector caution

BNP Paribas Securities India Private Disappointing FY27 guidance on client-specific challenges and a delayed cyclical recovery due toLimited

(+91) 22 6196 4350 geopolitical uncertainties prompted consensus earnings downgrade for most stocks after seeing

kumar.rakesh@asia.bnpparibas.com upgrades in 3Q. Share prices across the sector were already beaten down going into the earnings

season, however, the cautious investor sentiment triggered divergent stock price reactions, with

HCLT seeing a sharp correction due to lowered guidance while Coforge (NC) posting strong gains.

We see a distinct growth gap widening between firms capitalising on the AI transition and those

facing disruptions. We believe the current sector pricing pressures stem more from the aggressive

vendor consolidation than AI deflation, causing revenue leakage that order books fail to reflect.

4QFY26: Large-caps performance lags that of midcaps on client-specific issues

In 4QFY26, we saw mid-cap IT Services companies perform better than large-caps on consensus’

revenue and margin expectations. Collectively, 75% of mid-cap IT Services firms beat on INR