Infosys remains top pick in Indian IT space: Religare

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26 Aug, 2025 12:21

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Religare's report on Indian IT sectorWe expect steady US$ growth for our IT universe in Q2FY16 with margin tailwinds helped by seasonal strength and INR depreciation. Large-caps are likely to report US$ revenue growth of 1.0-3.7% QoQ supported by limited FX impact, except from AUD. We expect INFO and TCS to lead growth and see recovery in TECHM’s CC revenue growth and margins over Q1; HCLT however would remain a laggard this quarter. Among mid-caps, MTCL is likely to outshine peers. Margins are likely to improve sequentially aided by a weaker INR (-2% QoQ). INFO remains our top pick in the Indian IT space.IT stocks have outperformed the broader index by 15% in Q2 led by INR depreciation, and we think revenue-led earnings beat is essential for continued outperformance. However, a profit warning from HCLT is a negative surprise and should cap near-term upsides.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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