loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

IT Results this week

ICICIdirect Research 31 Jul 2026 DISCLAIMER

In IT sector, ER&D side saw weakness continued with KPIT Tech reporting a soft quarter (revenues down 3.6% QoQ/up 0.1% YoY CC and reported EBITDA margin at 16.2%, down ~260 bps QoQ/~330 bps YoY), impacted by program ramp-downs, stress at European and Japanese OEMs, Chinese competition and tariff-related issues. Management expects Q2 to remain weak, with recovery likely only from H2 as recent deal wins start ramping up.
On the other hand, Coforge delivered another standout quarter (+22.3% QoQ CC), helped both by the Encora acquisition and strong organic execution. 12-month executable order book touched a record high of US$2.23 bn, up 44% YoY, while consolidated EBIT margins dipped this quarter by 60 bps to 16%, they remained ahead of the ~15.5% FY27 guidance and management commentary continues to indicate healthy growth visibility despite higher acquisition-related costs going ahead.
Overall, earnings performance has been mixed. A few companies continue to execute exceptionally well, while large-cap IT is still dealing with a higher base slower growth problem due to AI-led pricing deflation and slower discretionary spending. We remain selective on the sector, preferring growth-oriented companies while waiting for the broader AI impact on demand and pricing to play out. Our top picks are – LTM, Coforge and TechM.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere