According to Bloomberg estimates, Coforge Ltd. is expected to lead the June quarter IT sector with 19.53% sequential revenue growth in Q1 FY27, significantly outpacing other major IT companies. The company's Ebit is estimated to rise 12.66% during the quarter, though net income could decline 11.1%. This strong performance comes despite broader sector challenges including weak discretionary spending and AI-led efficiency pressures affecting pricing. The timeline for the Encora acquisition and management's outlook for the travel business are key areas to watch for Coforge.
Among tier-1 IT companies, Infosys is expected to lead sequential revenue growth at 3.92%, followed by Tech Mahindra at 2.3%. TCS, HCLTech and Wipro are estimated to report growth of 1.4-1.6%. TCS and Wipro could see sequential Ebit declines of around 3%, while Tech Mahindra's net income is estimated to jump nearly 19%. The broader sector faces continued challenges from weak discretionary spending and AI-led efficiency gains putting pressure on growth and pricing. Deal wins, project ramp-ups and the ability of companies to monetise artificial intelligence will be among the biggest factors to watch.
According to reports, among tier-1 companies, Infosys may trim the upper end of its FY27 constant-currency revenue growth guidance of 1.5-3.5% amid persistent uncertainties. HCLTech could also revisit the upper end of its 1-4% growth outlook as project delays and weak telecom spending weigh. For Wipro, the key focus will be its second-quarter revenue guidance and outlook for banking and financial services. The June quarter is unlikely to offer meaningful relief for IT stocks, with weak discretionary spending continuing to weigh on demand and AI-led efficiency gains putting pressure on growth and pricing.
Among tier-2 companies, Persistent Systems is expected to post 4.17% sequential revenue growth, while Mphasis could grow 4.04%. Analysts will watch deal ramp-ups and margins at Mphasis, while Persistent's commentary on hi-tech deals and the Nagarro acquisition will be in focus. The June quarter is unlikely to offer meaningful relief for IT stocks, with weak discretionary spending continuing to weigh on demand and AI-led efficiency gains putting pressure on growth and pricing.
