Indian IT Services 4Q Review: Mid-tier outperforming in a lacklustre sector

Research evidence excerpt

Indian IT Services 4Q Review: Mid-tier outperforming in a lacklustre sector

12 May 2026

Indian IT Services EquitiesIT Services

4Q Review: Mid-tier outperforming in a lacklustre sector India

◆ 4Q was a miss by top-tier IT companies and a beat by mid-tier

(on average), particularly in terms of FY27 outlook Yogesh Aggarwal*

Head of Research, India

HSBC Securities and Capital Markets (India) Private

◆ With global AI spending still robust (and top 4 hyper-scalers’ Limited

growth/capex accelerating), IT services lack near-term triggers yogeshaggarwal@hsbc.co.in+91 22 2268 1246

Prateek Maheshwari*, CFA

◆ We like INFY, TechM, and Coforge (all Buy); cut Cyient TP to Analyst, India IT Services

INR870 from INR915, keep KPIT TP at INR735, rate both Hold HSBCLimitedSecurities and Capital Markets (India) Private

prateek.maheshwari@hsbc.co.in

+9198 1937 0718

IT 4Q results characterised by softer quarter and guidance from top-tier IT

Sagar Desai*

companies and relatively better quarter and outlook by mid-tier IT companies: Analyst, India IT Services

HCLT was the biggest disappointment of the quarter, though INFY guidance was a HSBC Securities and Capital Markets (India) Private

Limited

bit softer than expected as well. Both the companies alluded to AI deflationary sagar.desai@hsbc.co.in

impact. TCS outlook was inline, while CTSH positively surprised by not changing its +91 83 6919 9927

guidance. Wipro disappointed again, while TechM and LTIM were in line.

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Overall, top-tier was clearly a miss vs consensus. On the other hand, mid-tier did not registered/ qualified pursuant to FINRA regulations

better (both 4Q and outlook). Coforge’s margin and FCF guidance upgrades stood