Macquarie believes Tech Mahindra may find it difficult to achieve the FY27 goals outlined by management, specifically, reaching a 15% EBIT margin and outperforming peers in topline growth.
On HCL Technologies, Macquarie remains upbeat about the company’s medium-term prospects to deliver best-in-class revenue growth and earnings growth.
However, it expects FY26 earnings per share estimates growth to likely remain in single digits, which could limit further re-rating of the stock’s valuation multiple compared to peers.Accenture, which released its results recently, reported a 7% growth in its revenue from the same quarter last year.
For the full financial year, Accenture has narrowed its revenue growth guidance to between 6% and 7% from 5% and 7% earlier. The organic growth guidance of 3% to 4% year-on-year and are now near pre-Covid long-term averages.
Accenture will face headwinds of close to 2% from Federal contracts, reflecting in their 1% to 5% guidance for the ongoing quarter.
Gen AI new bookings stood at $1.5 billion for the quarter and revenue during the quarter stood at $700 million. The company’s financial services vertical was strong during the quarter, indicating a positive read through for Indian IT companies, as BFSI happens to be the largest vertical for most of these companies.
The Nifty IT index has climbed over 16% in the last three months, but still remains 10% lower on a year-to-date basis.
