As Q2 results approach in mid-October, investors eye key Indian IT firms—Infosys, Coforge, and HCL Tech—for portfolio additions. Each stock carries unique growth prospects amid evolving sector dynamics and optimistic earnings forecasts.
Key Highlights:
Infosys
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Expected to report around 5% YoY revenue growth to about ₹41,000 crore with net profit rising roughly 5% YoY.
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Margins poised to stabilize near 20-22%, supported by large Total Contract Value (TCV) deals worth $7.7 billion.
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Company revised FY25 revenue guidance upward to 3.75-4.5%, highlighting strong momentum in financial services and mega-deals.
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Scheduled earnings announcement on October 13; interim dividend likely.
Coforge
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Mid-tier firm renowned for rapid expansion and digital offerings.
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Previous quarter saw exceptional 34.5% YoY revenue growth and 35.6% YoY rise in adjusted PAT, with an expanding signed order book now $1.31 billion, up 40% YoY.
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Agile workforce growth and robust EBITDA margin expansion signal sustained performance.
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Latest Q2 earnings expected October 24, positioning Coforge as a leader among mid-tier IT firms.
HCL Tech
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Demonstrated healthy 3.7% YoY revenue growth last quarter with stable pipeline supported by AI investments and a strategic partnership with OpenAI.
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Operating margin impacted by lower utilization and investments in Gen AI but poised for recovery.
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The only IT services firm rated Customer's Choice in all six Gartner Voice of Customer Quadrants.
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Board meeting for Q2 results and possible third interim dividend scheduled October 13.
Investors should consider these firms' growth guidance, deal pipelines, and margin prospects amid moderate sector headwinds and rising demand in AI and cloud services. Infosys offers steady large-cap stability, Coforge provides strong mid-tier growth momentum, and HCL Tech balances innovation with scale.
Source: Financial Express, Economic Times, Coforge Ltd. official release, HDFC Securities report, HCL Tech investor relations