Mid-cap IT Companies Set to Outpace Larger Peers in Q1

Revenue growth driven by large deals, limited tariff exposure and better Gen AI adoption

- Jas Bardia

India's mid-sized IT services firms, with annual revenues of $1-5 billion, are expected to outgrow their larger peers in the first quarter of FY26, driven by large deal wins, limited exposure to tariff-hit sectors, and better adoption of Gen AI.

LTIMindtree Ltd, Mphasis Ltd, Coforge Ltd, Persistent Systems Ltd, and Hexaware Technologies Ltd, are expected to report a sequential revenue growth between 0.6% and 9% for the three months ended June, according to at least five brokerages.

In contrast, larger players like Tata Consultancy Services (TCS), Infosys, HCLTech, Wipro, and Tech Mahindra are expected to grow around 3.5%.

Wipro is likely to report up to a 2.5% decline due to weak European demand and subdued client spending. Infosys is expected to outperform its top peers.

Coforge is expected to lead the mid-cap pack, buoyed by its $120-million annual contract with Sabre Corp., signed in March. Persistent Systems is projected to post 4.1% sequential growth, Kotak Institutional Equities said in a 30 June note.