Indian IT Services: How is 1QFY27 shaping up so far?

Research evidence excerpt

Indian IT Services: How is 1QFY27 shaping up so far?

20 July 2026

Indian IT Services EquitiesIT Services

How is 1QFY27 shaping up so far? India

◆ IT results so far have raised street expectations for INFY Yogesh Aggarwal*

as well HeadHSBCofSecuritiesResearch,andIndiaCapital Markets (India) Private

Limited

◆ We still expect INFY to revise down its top-end of guidance, yogeshaggarwal@hsbc.co.in

+91 22 2268 1246

though it’s an immaterial event in our view

Prateek Maheshwari*, CFA

Analyst, India IT Services

◆ 2-3% growth in FY27 is still a positive outcome in context of HSBC Securities and Capital Markets (India) Private

AI deflation and valuations prateek.maheshwari@hsbc.co.in

+9198 1937 0718

Sagar Desai*

Indian IT results so far (TCS, TechM, HCLT and LTIM) have been better than low Analyst, India IT Services

market expectations (exhibit below). After a long spell of deep pessimism on the HSBC Securities and Capital Markets (India) Private

sector there is a sliver of investor interest in the sector (longevity of this interest is sagar.desai@hsbc.co.in

uncertain though). Infosys reports on Thursday and now market expectations run +91 83 6919 9927

high for Infosys as well. In our preview note we expected Infosys to revise down its

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

top-end of the guidance (see Indian IT Services: No respite in business or narrative, not registered/ qualified pursuant to FINRA regulations

1 July 2026). We expect the same as this quarter for Infosys is likely to be flattish to

1% growth range (broadly in line with TCS; reported should be higher due to the M&A

benefit of around 1%, not part of the annual guidance).

Unlike HCLT, Infosys’s 2H is usually much weaker (seasonally) and hence, it may be