Wipro, HCL Tech, TechM, Coforge, Mphasis: What US retail trends reveal about IT demand
IT stocks: Antique Stock Broking said HCL Technologies, Coforge, and Mphasis are its preferred picks within the IT coverage universe.
- Dec 31, 2025,
- Updated Dec 31, 2025 12:21 PM IST
The Indian IT sector’s retail vertical continues to face muted growth, though companies like HCL Technologies and Tech Mahindra (TechM) have delivered relatively stronger performance through disciplined AI adoption and scaling. According to Antique Stock Broking, cautious demand among US retailers remains a key factor, with leading retailers reporting 3 per cent year-on-year growth in Q3CY25, slightly higher than 2.8 per cent in the previous quarter, driven by e-commerce strength and well-timed promotional events.
Despite this, consumers remain careful about big-ticket purchases, keeping discretionary categories and project-led spending under pressure, while essentials and value-focused categories maintain steadier demand.
"US retailers reported stable earnings performance during the quarter, indicating that near-term pressures are largely reflected in expectations. However, subdued consumer confidence and cautious end-demand trends point to near-term moderation in technology spending, suggesting that retail vertical growth for Indian IT companies is likely to remain constrained in the immediate term," Antique said.
The brokerage said HCL Technologies, Coforge, and Mphasis are its preferred picks within the IT coverage universe.
Antique said Indian IT companies are seeing elongated decision cycles as clients remain cautious in technology spend and focus on cost efficiency. HCL Technologies has gained traction and higher deal wins through its AI-led strategy and portfolio diversification, while Wipro is actively engaging clients on cost- and supply chain-driven opportunities as retailers reassess sourcing and operating models.
Overall, discretionary technology spending remains constrained by macroeconomic and tariff-related uncertainties, though the pace of decline has largely stabilised, Antique said.
It noted that clients continued to prioritise AI adoption, cloud modernisation, cost takeout, de-risking, and operating model productivity to navigate volatile consumer demand and inflationary pressures.
Antique said US retailers largely avoided broad-based price hikes, prioritizing competitive pricing and value, with discretionary spending remaining the primary weakness. Subdued consumer confidence and cautious end-demand trends suggest that retail vertical growth for Indian IT companies is likely to remain constrained in the near term. HCL Technologies, Coforge, and Mphasis are highlighted as preferred picks within the IT coverage universe.
The Indian IT sector’s retail vertical continues to face muted growth, though companies like HCL Technologies and Tech Mahindra (TechM) have delivered relatively stronger performance through disciplined AI adoption and scaling. According to Antique Stock Broking, cautious demand among US retailers remains a key factor, with leading retailers reporting 3 per cent year-on-year growth in Q3CY25, slightly higher than 2.8 per cent in the previous quarter, driven by e-commerce strength and well-timed promotional events.
Despite this, consumers remain careful about big-ticket purchases, keeping discretionary categories and project-led spending under pressure, while essentials and value-focused categories maintain steadier demand.
"US retailers reported stable earnings performance during the quarter, indicating that near-term pressures are largely reflected in expectations. However, subdued consumer confidence and cautious end-demand trends point to near-term moderation in technology spending, suggesting that retail vertical growth for Indian IT companies is likely to remain constrained in the immediate term," Antique said.
The brokerage said HCL Technologies, Coforge, and Mphasis are its preferred picks within the IT coverage universe.
Antique said Indian IT companies are seeing elongated decision cycles as clients remain cautious in technology spend and focus on cost efficiency. HCL Technologies has gained traction and higher deal wins through its AI-led strategy and portfolio diversification, while Wipro is actively engaging clients on cost- and supply chain-driven opportunities as retailers reassess sourcing and operating models.
Overall, discretionary technology spending remains constrained by macroeconomic and tariff-related uncertainties, though the pace of decline has largely stabilised, Antique said.
It noted that clients continued to prioritise AI adoption, cloud modernisation, cost takeout, de-risking, and operating model productivity to navigate volatile consumer demand and inflationary pressures.
Antique said US retailers largely avoided broad-based price hikes, prioritizing competitive pricing and value, with discretionary spending remaining the primary weakness. Subdued consumer confidence and cautious end-demand trends suggest that retail vertical growth for Indian IT companies is likely to remain constrained in the near term. HCL Technologies, Coforge, and Mphasis are highlighted as preferred picks within the IT coverage universe.