July 30: India's IT sector has delivered a mixed set of June quarter (Q1 FY27) earnings, with Tech Mahindra emerging as the top performer in profit growth among large-cap IT firms, while Coforge posted the strongest revenue growth. Tata Consultancy Services (TCS) retained its position as the country's largest IT company by market capitalisation despite reporting modest earnings growth.
Among the major IT companies that have announced Q1 FY27 results, Tech Mahindra reported the highest year-on-year (YoY) profit growth of 31.7%, followed by HCL Technologies at 20.3% and L&T Technology Services (LTTS) at 17.1%. In contrast, Wipro recorded a marginal 0.6% rise in profit.
On the revenue front, Coforge led the sector with 49.9% YoY sales growth, significantly outperforming peers. Oracle Financial Services Software (OFSS) followed with 68.7% sales growth, while Tech Mahindra (17.7%), Mphasis (17.5%), and Infosys (14%) also reported healthy top-line expansion.
TCS remained India's most valuable IT company with a market capitalisation of ₹8.85 lakh crore, followed by Infosys (₹4.69 lakh crore), HCL Technologies (₹3.65 lakh crore), Wipro (₹1.82 lakh crore) and Tech Mahindra (₹1.61 lakh crore).
However, earnings surprises remained mixed. Newgen Software delivered the strongest positive EPS surprise at 9.2%, followed by Zensar Technologies (+6.2%) and LTTS (+2.5%). On the downside, KPIT Technologies (-22%), Hexaware Technologies (-18.9%), Coforge (-15.2%), Tata Elxsi (-13.3%), and Tech Mahindra (-10.1%) missed analyst expectations.
Several companies, including Persistent Systems, RateGain Travel Technologies, Intellect Design Arena, Sonata Software, Latent View Analytics, C.E. Info Systems, and Capillary Technologies, are yet to announce their Q1 FY27 results.
Q1 FY27 Highlights
| Company | Profit YoY | Sales YoY | EPS Surprise |
|---|---|---|---|
| Tech Mahindra | +31.7% | +17.7% | -10.1% |
| Coforge | +85.8% | +49.9% | -15.2% |
| HCL Technologies | +20.3% | +13.9% | +1.0% |
| Infosys | +12.3% | +14.0% | -2.0% |
| TCS | +4.7% | +13.9% | -2.4% |
| Wipro | +0.6% | +10.6% | -5.7% |
| OFSS | +120.5% | +68.7% | +1.1% |
Disclaimer: This report is for informational purposes only and should not be construed as investment advice or a recommendation to buy, sell or hold any security. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.
