Branch2 Intelligence
Infosys, Tech Mahindra, Mphasis Among Anand Rathi's Top Picks Amid The IT Sector's 'Double Whammy'
Key takeaway
Anand Rathi flags Middle-East conflict and AI deflation as a 'double whammy' for India's IT sector, expecting subdued Q1 FY27.
- Step 11st-order: Middle-East conflict disrupts global supply chains and raises energy costs, while AI deflation pressures IT pricing — a double whammy for Indian IT firms.
- Step 22nd-order: US and European clients defer discretionary IT spending due to uncertainty, reducing order inflows for Indian IT companies in Q1 FY27.
- Step 33rd-order: Lower revenue growth and margin compression at Infosys, Tech Mahindra, and Mphasis lead to reduced subcontracting and hiring, impacting UK-based IT service SMEs that depend on these firms for work.
Source: IN:NDTV Profit
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