Large-cap Indian IT companies are expected to report their weakest quarterly growth in three years in Q2FY27, with demand conditions largely remaining in a “status quo” state. According to the CNBC-TV18 poll, demand has neither deteriorated significantly nor shown tangible signs of recovery since Q1FY27.
The CNBC-TV18 poll estimates sequential constant-currency revenue growth of 0.5% for TCS, 1.4% for Infosys, a 0.9% decline for Wipro, 2.5% for HCL Technologies and 1.5% for Tech Mahindra. On an organic basis, growth is estimated at 0.5% for TCS, 0.9% for Infosys, -1.6% for Wipro, 1.5% for HCL Technologies and 1.5% for Tech Mahindra.

Midcaps expected to outpace large-cap peersMid-tier IT vendors are expected to continue outpacing their large-cap peers, supported by market-share gains in specific verticals and the ramp-up of large deals. The CNBC-TV18 poll estimates Q2FY27 sequential CC revenue growth of 6.7% for Persistent Systems, 3% for Mphasis and 12.2% for Coforge.
Organic growth is estimated at 6.7%, 2.5% and 4%, respectively. Persistent Systems' growth is expected to be supported by the ramp-up of a US$650 million-plus mega-deal, while Coforge is expected to see 3.5%-4.5% organic QoQ CC growth, supported by broad-based vertical execution.

Acquisitions to provide additional growthAcquisitions are also expected to contribute to reported growth for several IT companies, according to Kotak estimates. Coforge is expected to get around 820 basis points of inorganic contribution from Encora.
HCL Technologies could see a 110-basis-point boost from the HPE Telco Solutions and Jaspersoft acquisitions, while Wipro could get around 80 basis points from Mindsprint and AlphaNet. Hexaware is expected to see around 80 basis points of contribution from the CPS contract acquisition.

Infosys could get around 50 basis points of full-quarter contribution from Optimum Healthcare, while Mphasis is expected to get around 50 basis points from Red Oak. Infosys guidance in focusInfosys is expected to cut its FY27 revenue growth guidance, according to the estimates provided.
The company could lower its constant-currency revenue growth guidance to 1%-2% or 1.5%-2.5%, from the existing 1.5%-3% range. The expected guidance cut is attributed to a ramp-down by a European automotive client and slower volume conversion. HCL Technologies may keep organic outlook broadly unchangedHCL Technologies is expected to keep its organic growth outlook broadly unchanged.

Its reported revenue growth guidance could be revised upwards to 3%-4% from 1%-4%, reflecting an estimated 100-basis-point contribution from the Jaspersoft and HPE Telco Solutions acquisitions. On an organic constant-currency basis, the guidance is expected at 2%-3%, with a 2.5% midpoint.
This is broadly unchanged from the earlier 1%-4% organic range in terms of the midpoint, although the expected range is narrower. Wipro outlookWipro is expected to guide for Q3FY27 constant-currency growth of -2% to 0%, or an alternative range of -1.5% to +0.5%.

Accenture provides AI-related demand signalAccenture's recent results and guidance had a positive impact on global IT stocks, with the company guiding for 3%-6% growth. Accenture CEO Julie Sweet said: “We continue to believe the opportunities related to AI are greater than the impact of AI-related efficiencies in our business, and we expect that to continue as AI enables enterprises to do much more.”For Indian IT companies, the contribution from AI-related work will therefore remain an important area to watch during the Q2FY27 results season.
What to watch AI contribution: How much of new deal wins and revenue growth is coming from AI-related work? Deal competition: Has competition intensified in large deals, and is this affecting pricing or deal conversion? Demand recovery: Are clients moving beyond the current “status quo” environment, particularly in discretionary spending and volume growth?

Guidance: Whether companies revise their FY27 outlooks and how much of any reported growth is organic versus acquisition-led. FY28/FY29 EPS estimatesCompanyFY28 EPSFY29E EPSTCS159165Infosys80.484HCL Technologies7780.9Wipro13.513.9Tech Mahindra84.687.7