Q1 FY27 Preview • IT Services

IT Sector Q1 Results Preview: Revenue Growth

Tier-1 vs Mid-cap: CC QoQ Revenue Growth Estimates

Kotak Institutional Equities estimates (tier-1) vs. Equirus Securities range for mid-caps

Top-6 Large-Cap Range

Equirus Securities: consolidated CC US$ sales, qoq
-1.1% +1.7%
FX headwind: flat to 30bps qoq

Mid-cap Range

Mphasis, Persistent, eClerx
-1.1% +1.7%
2.4% to 3.1% qoq CC growth

Key Factors Impacting Growth

Geopolitical

West Asia crisis — expected to have only a marginal direct and indirect impact on the sector.

Structural

AI deflation — early-stage impact starting to flow through into pricing and deal economics.

"We expect Top-6 large IT companies to report CC US$ consolidated Sales decline of 1.1% to growth of 1.7% qoq with adverse impact from cross-currency headwinds worth flat to 30bps qoq on US$ Sales growth." — Equirus Securities, Preview Note