TCS, Infosys, HCL Tech, Wipro, TechM: Will IT emerge as dark horse? What analysts say, fresh targets
Indian IT stocks have been hammered hard, but brokerage firms believe that IT stocks may see some improvement in Q2FY27.
- Oct 7, 2026,
- Updated Oct 7, 2026 3:15 PM IST
IT stocks to buy: Indian IT stocks have been hammered hard, but brokerage firms believe that IT stocks may see some improvement in Q2FY27, but a meaningful recovery in client spending is still some distance away. Weak discretionary demand, pricing pressure and global uncertainty could keep growth modest.
The weaker rupee and easing wage costs may support margins, while deal wins could help select Tier-II companies outperform larger peers. The IT sector is expected to deliver a steady but unspectacular Q2FY27, with clients continuing to remain cautious on discretionary spending.
Even, Morgan Stanley identifies India's IT services sector as an unexpected 'dark horse' beneficiary in the artificial intelligence boom. It believes that Indian IT companies may benefit from the implementation of AI software as enterprises need partners to deploy actual AI. AI demand remains encouraging, but it has not yet fully made up for weakness in traditional services.. Even, Accenture’s strong quarterly performance provides some comfort.
PL Capital expects a modest improvement in IT performance in Q2FY27, though global uncertainty and cautious client spending could keep growth muted. It sees Tier-II companies doing better than larger peers, helped by deal ramp-ups. AI demand remains healthy, while the weaker rupee could offer some support to margins.
IDBI Capital pencils a subdued Q2FY27 for large IT companies, with weak volumes, pricing pressure and limited mega-deal conversion keeping growth around 1 per cent. It prefers HCLTech and TCS, citing stronger operating momentum at HCLTech and attractive valuations at TCS. Wage-cost moderation could also aid margins.
Kotak Institutional Equities sees Accenture’s strong Q4 performance as encouraging for Indian IT, but cautions that the improvement in underlying demand remains limited. It said the absence of significant AI-led pricing pressure is positive for Indian IT companies, although overall technology spending remains subdued.
YES Securities said Accenture’s performance offers a positive read-through for Indian IT, with stronger consulting growth, robust Managed Services bookings and rising enterprise AI demand. However, weak discretionary spending and pricing pressure suggest that a broad-based recovery in IT budgets is still some time away.
PL Capital has a 'buy' rating on Coforge (Target Price: Rs 2,230), Fractal Analytics (Target Price: Rs 1,020), Firstsource Solutions (Target Price: Rs 350), Infosys (Target Price: Rs 1,300), Latent View Analytics (Target Price: Rs 320), Mphasis (Target Price: Rs 2,920), Persistent Systems (Target Price: Rs 6,540), Sagility (Target Price: Rs 60), TCS (Target Price: Rs 2,580) and Tech Mahindra (Target Price: Rs 1900).
It has an 'accumulate' rating for Cyient (Target Price: Rs 1,240), LTM (Target Price: Rs 4,260) and Tata Elxsi (Target Price: Rs 3,480). It has a 'hold' tag for HCL Tech (Target Price: Rs 1,230), LTTS (Target Price: Rs 3,300) and Wipro (Target Price: Rs 154). KPIT Tech and Tata Tech have been ascribed 'reduce' tag from PL Capital with target price of Rs 470 and Rs 630, respectively.
IDBI Capital has given a 'buy' on TCS (Target Price: Rs 3,137), TechM (Target Price: Rs 1,764) and Indegene (Target Price: Rs 620). It has given a 'hold' on Infosys (Target Price: Rs 1,137), HCL Tech (Target Price: Rs 1,380), Wipro (Target Price: Rs 196), LTM (Target Price: Rs 4,548), Coforge (Target Price: Rs 2,190), LTTS (Target Price: Rs 3,625), Cyient (Target Price: Rs 909), Zensar Tech (Target Price: Rs 569), Birlasoft (Target Price: Rs 336), Sonata Software (Target Price: Rs 332) and Newgen Software (Target Price: Rs 565).
Kotak has a 'buy' rating on Coforge (Target Price: Rs 2,000), Fractal Analytics (Target Price: Rs 1,000), Hexaware Tech (Target Price: Rs 660), Indegene (Target Price: Rs 735), Sagility (Target Price: Rs 54) and TechM (Target Price: Rs 1750). It has given an 'add' rating to Amagi Media Labs (Target Price: Rs 700), Cyient (Target Price: Rs 1,100), Infosys (Target Price: Rs 1,200) and TCS (Target Price: Rs 2,450).
It has a 'reduce' tag for HCL Tech (Target Price: Rs 1,200), LTTS (Target Price: Rs 3,350), Mphasis (Target Price: Rs 2,240) and Persistent (Target Price: Rs 5,250). It has suggested to 'sell' eClerx Services (Target Price: Rs 1,520), Firstsource (Target Price: Rs 225), KPIT Tech (Target Price: Rs 540), LTM (Target Price: Rs 4,150), RateGain (Target Price: Rs 540), Tata Elxsi (Target Price: Rs 3,000), Tata Tech (Target Price: Rs 500) and Wipro (Target Price: Rs 150).
YES Securities has a 'buy' rating on TCS (Target Price: Rs 2,873), Infosys (Target Price: Rs 1,445), Wipro (Target Price: Rs 194), Tech Mahindra (Target Price: Rs 1,960) and LTM (Target Price: Rs 4,696). It has a 'hold' rating on HCL Tech with a target price of Rs 1,367.
IT stocks to buy: Indian IT stocks have been hammered hard, but brokerage firms believe that IT stocks may see some improvement in Q2FY27, but a meaningful recovery in client spending is still some distance away. Weak discretionary demand, pricing pressure and global uncertainty could keep growth modest.
The weaker rupee and easing wage costs may support margins, while deal wins could help select Tier-II companies outperform larger peers. The IT sector is expected to deliver a steady but unspectacular Q2FY27, with clients continuing to remain cautious on discretionary spending.
Even, Morgan Stanley identifies India's IT services sector as an unexpected 'dark horse' beneficiary in the artificial intelligence boom. It believes that Indian IT companies may benefit from the implementation of AI software as enterprises need partners to deploy actual AI. AI demand remains encouraging, but it has not yet fully made up for weakness in traditional services.. Even, Accenture’s strong quarterly performance provides some comfort.
PL Capital expects a modest improvement in IT performance in Q2FY27, though global uncertainty and cautious client spending could keep growth muted. It sees Tier-II companies doing better than larger peers, helped by deal ramp-ups. AI demand remains healthy, while the weaker rupee could offer some support to margins.
IDBI Capital pencils a subdued Q2FY27 for large IT companies, with weak volumes, pricing pressure and limited mega-deal conversion keeping growth around 1 per cent. It prefers HCLTech and TCS, citing stronger operating momentum at HCLTech and attractive valuations at TCS. Wage-cost moderation could also aid margins.
Kotak Institutional Equities sees Accenture’s strong Q4 performance as encouraging for Indian IT, but cautions that the improvement in underlying demand remains limited. It said the absence of significant AI-led pricing pressure is positive for Indian IT companies, although overall technology spending remains subdued.
YES Securities said Accenture’s performance offers a positive read-through for Indian IT, with stronger consulting growth, robust Managed Services bookings and rising enterprise AI demand. However, weak discretionary spending and pricing pressure suggest that a broad-based recovery in IT budgets is still some time away.
PL Capital has a 'buy' rating on Coforge (Target Price: Rs 2,230), Fractal Analytics (Target Price: Rs 1,020), Firstsource Solutions (Target Price: Rs 350), Infosys (Target Price: Rs 1,300), Latent View Analytics (Target Price: Rs 320), Mphasis (Target Price: Rs 2,920), Persistent Systems (Target Price: Rs 6,540), Sagility (Target Price: Rs 60), TCS (Target Price: Rs 2,580) and Tech Mahindra (Target Price: Rs 1900).
It has an 'accumulate' rating for Cyient (Target Price: Rs 1,240), LTM (Target Price: Rs 4,260) and Tata Elxsi (Target Price: Rs 3,480). It has a 'hold' tag for HCL Tech (Target Price: Rs 1,230), LTTS (Target Price: Rs 3,300) and Wipro (Target Price: Rs 154). KPIT Tech and Tata Tech have been ascribed 'reduce' tag from PL Capital with target price of Rs 470 and Rs 630, respectively.
IDBI Capital has given a 'buy' on TCS (Target Price: Rs 3,137), TechM (Target Price: Rs 1,764) and Indegene (Target Price: Rs 620). It has given a 'hold' on Infosys (Target Price: Rs 1,137), HCL Tech (Target Price: Rs 1,380), Wipro (Target Price: Rs 196), LTM (Target Price: Rs 4,548), Coforge (Target Price: Rs 2,190), LTTS (Target Price: Rs 3,625), Cyient (Target Price: Rs 909), Zensar Tech (Target Price: Rs 569), Birlasoft (Target Price: Rs 336), Sonata Software (Target Price: Rs 332) and Newgen Software (Target Price: Rs 565).
Kotak has a 'buy' rating on Coforge (Target Price: Rs 2,000), Fractal Analytics (Target Price: Rs 1,000), Hexaware Tech (Target Price: Rs 660), Indegene (Target Price: Rs 735), Sagility (Target Price: Rs 54) and TechM (Target Price: Rs 1750). It has given an 'add' rating to Amagi Media Labs (Target Price: Rs 700), Cyient (Target Price: Rs 1,100), Infosys (Target Price: Rs 1,200) and TCS (Target Price: Rs 2,450).
It has a 'reduce' tag for HCL Tech (Target Price: Rs 1,200), LTTS (Target Price: Rs 3,350), Mphasis (Target Price: Rs 2,240) and Persistent (Target Price: Rs 5,250). It has suggested to 'sell' eClerx Services (Target Price: Rs 1,520), Firstsource (Target Price: Rs 225), KPIT Tech (Target Price: Rs 540), LTM (Target Price: Rs 4,150), RateGain (Target Price: Rs 540), Tata Elxsi (Target Price: Rs 3,000), Tata Tech (Target Price: Rs 500) and Wipro (Target Price: Rs 150).
YES Securities has a 'buy' rating on TCS (Target Price: Rs 2,873), Infosys (Target Price: Rs 1,445), Wipro (Target Price: Rs 194), Tech Mahindra (Target Price: Rs 1,960) and LTM (Target Price: Rs 4,696). It has a 'hold' rating on HCL Tech with a target price of Rs 1,367.