TCS, Infosys, HCL Tech, Mphasis, Cyient, LTTS, Wipro: Q4 previews & targets for IT stocks

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HDFC Securities projects a subdued Q4 FY26 for the Indian IT services sector, with tier-1 companies expecting modest growth (between -1.1% to 0.9% QoQ in constant currency terms) due to macroeconomic uncertainties and cautious client spending. Despite a 6-7% deflation impact, fresh AI-centric deals offer a partial offset, and the sector’s valuations have corrected to pre-COVID levels, presenting attractive entry points. HDFC Securities recommends “buy” ratings for Infosys, HCL Technologies, LTIMindtree, Birlasoft, Firstsource Solutions, Happiest Minds Technologies, and Mastek, and “add” ratings for TCS, Wipro, Tech Mahindra, Mphasis, Persistent Systems, L&T Technology Services, Tata Elxsi, Zensar Technologies, and Cyient.

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