India’s top technology businesses will plan to announce their results of the September Quarter of next week, and analysts expect Q2FY26 to be a subdued quarter for IT services, with no material improvement over the past quarter. According to analysts, ongoing macro economic and tariff uncertainties have resulted in clients assigning fewer dollars to major initiatives, and this is expected to be reflected in the September Quarter number. These poor projections also indicate that a recovery in technical stocks may not be visible within the near term. Middle captain to perform better than big shells, Motilal Oswal expects the growth of quarter-to-quarter (QOQ) Constant Currency (CC) in 2qfy26 to range between 0.3% and 2.4% for IT businesses with large CAP, while the mid-cap is expected to perform again, with the growth between -0.5% and 6.0%. For major cap companies, Motilal Owal TCs project to report 1% QOQ CC revenue growth, with the BSNL ramp probably from 3QFY26. Infosys is expected to produce 2.4% QOQ CC growth. Wipro is likely to report 0.3% QOQ CC growth, slightly above the center of guidance, supported by inorganic contributions, while the broker expects Tech Mahindra to produce 1% QOQ growth. Ltimindree is likely to report 2% CC growth, using the Agricultural Deal ramp. Among mid-level businesses, Motilal Oswal expects Coforge to lead with about 6% QOQ CC income growth, powered by the steady driveway of the Saber agreement and the execution of large contracts. Persistent systems and hexaware are likely to produce 3.5% and 3.3% QOQ CC growth, while MPHASIS is expected to report 1.5% CC growth. For ER & D businesses, a gradual recovery of 3Q is expected. It is projected that KPit Technologies will report a flat QOQ CC growth as a result of lower-than-expected contributions from Caresoft, while Tata Teleservices, Tejas Networks and L&T Technology Services are likely to report 1.5%, 1%and 1%cc respectively. Cyient DET is expected to produce 0.5% cc growth, reflecting some stabilization. The broker is working on a wind of about 30-50 basis points for most businesses in a cross currency. Successive margin gains to remain subdued according to the broker, TCS EBIT margins can fall by 20 basis points as a result of wage increases and lower utilization, while it is expected to see HCL technologies and infosys respectively improvements of 50 basis points and 40 basis points. Tech Mahindra and Ltimindree can achieve 50-60 basis points, Coforge can rise 80 basis points to 14%, expected to normalize Hexaware Technologies to 1Q-One-time, and ER & D counterparts are expected to remain stable except for Tejas networks, which can deliver the sequential profits. Tech Mahindra and Coforge remain brokers Top Picks Motilal Oswal prioritizes a bottom-up game in IT, and emphasizes Tech Mahindra and HCl Technologies under major caps and coforge and hexaware technology in the middle segment. According to the broker, it prefers Tech Mahindra, who sees early signs of transformation under new leadership and improved the execution in BFSI, pointing out that the transformation of Tech Mahindra is relatively disconnected from discretionary spending. Motilal Oswal also likes HCl Technologies for its portfolio of all weather. The broker said Coforge and Hexaware in the mid-Captain remain the pinnacle and noted that the previous downcycle shows that firms in the mid-level can thrive in cost-focused environments. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.
Earnings -preview: subdued Q2FY26 before IT enterprises; Middle captain seen better than Big Caps: Motilale Oswal
