Q1FY27 Results Preview: Banks Ride Credit Growth, IT Braces For A Muted Quarter

As Q1FY27 earnings season kicks off, banks and IT are set for contrasting stories. Banks look set for a strong quarter, with credit growth at a multi-year high of 17.7% YoY, though deposit mobilization lags and margins face mild pressure at large private banks like HDFC, ICICI and Axis. MOFSL's top picks are SBI, ICICI Bank, HDFC Bank and AU Small Finance Bank. IT, on the other hand, is bracing for a subdued quarter as weak discretionary spending and AI-led cost optimisation weigh on revenue, with a softer rupee offering some margin cushion. Infosys and Tech Mahindra are seen as relative outperformers, while TCS, HCLTech and Wipro may report softer trends.