Q1FY27 IT earnings preview: Brokerages see mixed quarter as AI, macro headwinds weigh on growth

Brokerages expect a mixed to weak Q1FY27 for Indian IT companies, with JM Financial estimating CC revenue growth of 0.7% to 6.6% YoY for the top six firms and Motilal Oswal cutting target multiples by 15-20% across coverage on AI-led productivity concerns and macro uncertainty. Infosys and Tech Mahindra are expected to outperform among large-caps, while HCLTech and Wipro may post sequential declines due to client-specific issues. Mid-tier firms led by Hexaware and Persistent Systems are projected to fare better with 6.7% to 16.2% YoY CC growth, though overall sector re-rating hinges on demand stabilisation.