Debasis Mohapatra
Bengaluru, 5 April 2026
Revenue growth guidance of Indian IT services companies is likely to remain tepid for FY27 amid rising geo-political tensions.
According to brokerage firm- Equirus Securities, top IT firms are likely to guide for maximum up to 5% revenue growth for the current financial year.
For Infosys, revenue growth projection is likely to in the range of 1.5%-4.5% for FY27.
“We expect Infosys to guide for 1.5-4.5% CC growth in US$ Sales (largely organic considering pending closure of the last three announced M&As) with EBITM guidance of 20-22% for FY27E,” the report by Equirus Securities said.
HCLTech is likely to guide for 3-5% CC (constant currency) US$ services sales growth with operating margin guidance of 17.5-18.5% for FY27.
Similarly, for Wipro, the report said the company may guide for CC IT Services dip of 1.5% to growth of 0.5% QoQ (quarter-on-quarter) for first quarter of FY27. Notably, Wipro doesn’t provide full year guidance and does it for the quarter.
Interestingly, the report indicated that Wipro might announce a buyback of its share during its fourth quarter results’ announcement.
“We also do not rule out possibility of sizable tender offer buyback announcement from Wipro with its 4QFY26E results,” the report said.
Demand Environment:
On demand environment, the report said that IT spend is expected to remain subdued in the near to medium-term. Uncertain macroeconomic environment, and geopolitical volatility are seen as key factors behind such cautious spend by enterprises.
“Increasing demand for AI led scale up by enterprise clients is largely getting funded by i) savings from cost take out or outsourcing or vendor consolidation led deals and ii) increasing demand for pass-on of some of AI led productivity gains. This, in our view, is likely to keep IT spend under check at least for the near-medium term,” the report said.
Mid-tier IT firms:
Among mid-tier IT firms, Tech Mahindra is expected to post 0.6% rise in revenue quarter-on-quarter in constant currency (CC) term during Q4FY26. According to the report, the revenue growth will be led by ramp up of earlier won deals, and seasonal strength in Comviva. Investors will have an eye on demand environment commentary by the management apart from outlook for telecom sector.
For LTIMindtree, revenue growth is likely to increase by 1.6% QoQ led by ramp up of some earlier won deals, the report said.
On Coforge, the report noted that the company is likely to post 2.6% QoQ growth of revenue in Q4FY26. “Consolidated EBIT margins expected to increase by 205 basis points largely led by forex and likely lower passthrough sales quarter-on-quarter. We expect EBIT (incl. Fx) to be at 15.0% versus 13.4% QoQ Deal TCV expected to remain healthy sequentially,” the report by Equirus Securities said.
On Q4FY26 results of Persistent Systems, the report said that the mid-tier IT firm is expected to see 3.6% sequential rise in revenue growth. “We expect sales to grow 3.6% constant currency term, largely led by relatively higher growth in BFSI and Tech,” the report said on Persistent Systems.
