Infosys, TCS, HCL Tech, other IT stocks: JM Financial cuts targets up to 44%
Infosys, however, remained a top pick. The brokerage retained its ‘Buy’ rating but lowered the target price to Rs 1,660 (from Rs 1,930).
- Feb 18, 2026,
- Updated Feb 18, 2026 10:21 AM IST
Indian IT stocks declined on Wednesday, in line with a cautious outlook from domestic brokerage JM Financial. In a sector report, the brokerage highlighted that the industry is navigating a ‘dual blow’ of macroeconomic slowdowns and productivity shifts driven by generative AI.
Citing concerns over terminal growth, the brokerage has slashed target prices across its coverage universe by as much as 44% and downgraded ratings for key IT majors, including Tata Consultancy Services (TCS) and Wipro.
Meanwhile, on Wednesday at last check, Infosys shares were down 2.24% at Rs 1360. While TCS stock was down over 1%. The broader BSE IT index slipped 1.65% to 31,453.21.
“While service providers attribute growth moderation to macro headwinds, the buzz around AI productivity is spurring enterprises to seek similar gains from their service partners – increasing the risk of another soft year,” JM Financial said.
The brokerage forecasts that FY27 will likely be better than FY26, predicting a slow and gradual recovery with industry growth expected around 4% in constant currency terms for FY27, compared to roughly 2% in FY26.
Heavyweights: TCS and Wipro downgraded
TCS was downgraded from ‘Buy’ to ‘Add’, with its target price cut by over 22% to Rs 2,960 from Rs 3810. The note said that TCS margins in FY27 will likely remain lower due to the BSNL deal ramp-up and a strategic pivot towards growth over margins.
Wipro saw a steep cut, downgraded from ‘Buy’ to ‘Reduce’. The target price was slashed by over 30% to Rs 215.
JM Financial pointed out that Wipro has lagged growth versus peers and sees no reasons for the stock to do well despite reasonable valuations.
Infosys, however, remained a top pick. The brokerage retained its ‘Buy’ rating but lowered the target price to Rs 1,660 (from Rs 1,930), citing expectations that the Financial Services and EURS verticals will see growth acceleration in FY27.
HCL Tech: The brokerage retained its ‘Add’ rating with a revised target of Rs 1,570 from Rs 1770, while Tech Mahindra kept its ‘Add’ rating with a target of Rs 1,660 (from Rs 1780).
MapmyIndia sees 44% target cut
The sharpest price target cut was for MapmyIndia, which saw its target price slashed 44.2% to Rs 1,300 from Rs 2,330 earlier. The stock was downgraded to ‘Add’.
Other IT stocks
Coforge: Downgraded to ‘Add’ with a target price of Rs 1,500 (31% target price cut).
Persistent Systems: Downgraded to ‘Add’ with a target of Rs 5,955 ( 21.6%)
LTIMindtree: Rating cut to ‘Reduce’ with a target of Rs 5,095.
Tata Technologies: Downgraded to ‘Reduce’ with a target of Rs 580.
Hexaware: Downgraded to ‘Add’ with a target of Rs 650.
Amid the sea of price cuts, Firstsource stood out as an upgrade, moving from ‘Add’ to ‘Buy’ with a target price of Rs 340. Mphasis has a ‘Buy’ rating with a target of Rs 2,995. Sagility remained a preferred pick with a ‘Buy’ rating and a target of Rs 63. KPIT Technologies also has a retained ‘Buy’ rating with a target of Rs 1,100. Black Box (downgraded to ‘Add’, target Rs 590) and IKS Health (retained ‘Add’, target Rs 1,750).
Indian IT stocks declined on Wednesday, in line with a cautious outlook from domestic brokerage JM Financial. In a sector report, the brokerage highlighted that the industry is navigating a ‘dual blow’ of macroeconomic slowdowns and productivity shifts driven by generative AI.
Citing concerns over terminal growth, the brokerage has slashed target prices across its coverage universe by as much as 44% and downgraded ratings for key IT majors, including Tata Consultancy Services (TCS) and Wipro.
Meanwhile, on Wednesday at last check, Infosys shares were down 2.24% at Rs 1360. While TCS stock was down over 1%. The broader BSE IT index slipped 1.65% to 31,453.21.
“While service providers attribute growth moderation to macro headwinds, the buzz around AI productivity is spurring enterprises to seek similar gains from their service partners – increasing the risk of another soft year,” JM Financial said.
The brokerage forecasts that FY27 will likely be better than FY26, predicting a slow and gradual recovery with industry growth expected around 4% in constant currency terms for FY27, compared to roughly 2% in FY26.
Heavyweights: TCS and Wipro downgraded
TCS was downgraded from ‘Buy’ to ‘Add’, with its target price cut by over 22% to Rs 2,960 from Rs 3810. The note said that TCS margins in FY27 will likely remain lower due to the BSNL deal ramp-up and a strategic pivot towards growth over margins.
Wipro saw a steep cut, downgraded from ‘Buy’ to ‘Reduce’. The target price was slashed by over 30% to Rs 215.
JM Financial pointed out that Wipro has lagged growth versus peers and sees no reasons for the stock to do well despite reasonable valuations.
Infosys, however, remained a top pick. The brokerage retained its ‘Buy’ rating but lowered the target price to Rs 1,660 (from Rs 1,930), citing expectations that the Financial Services and EURS verticals will see growth acceleration in FY27.
HCL Tech: The brokerage retained its ‘Add’ rating with a revised target of Rs 1,570 from Rs 1770, while Tech Mahindra kept its ‘Add’ rating with a target of Rs 1,660 (from Rs 1780).
MapmyIndia sees 44% target cut
The sharpest price target cut was for MapmyIndia, which saw its target price slashed 44.2% to Rs 1,300 from Rs 2,330 earlier. The stock was downgraded to ‘Add’.
Other IT stocks
Coforge: Downgraded to ‘Add’ with a target price of Rs 1,500 (31% target price cut).
Persistent Systems: Downgraded to ‘Add’ with a target of Rs 5,955 ( 21.6%)
LTIMindtree: Rating cut to ‘Reduce’ with a target of Rs 5,095.
Tata Technologies: Downgraded to ‘Reduce’ with a target of Rs 580.
Hexaware: Downgraded to ‘Add’ with a target of Rs 650.
Amid the sea of price cuts, Firstsource stood out as an upgrade, moving from ‘Add’ to ‘Buy’ with a target price of Rs 340. Mphasis has a ‘Buy’ rating with a target of Rs 2,995. Sagility remained a preferred pick with a ‘Buy’ rating and a target of Rs 63. KPIT Technologies also has a retained ‘Buy’ rating with a target of Rs 1,100. Black Box (downgraded to ‘Add’, target Rs 590) and IKS Health (retained ‘Add’, target Rs 1,750).