Shares fell 1.2% as Infosys hinted at a tighter FY27 outlook, sending nerves through the IT services cluster. Analysts had warned that the company’s organic growth would remain sluggish, prompting a cautious revision.
The current FY27 guidance of 1.5%-2.5% sits at the lower end of the consensus range. Kotak Institutional Equities had already cut its projection to 1.5%-2.5%, while Citi saw a 1%-2% band, signalling a consensus that the firm’s underlying momentum will be modest.
Acquisitions are expected to account for roughly 170 basis points of the FY27 growth, a cushion that most investors see as a temporary band-aid for the weak organic engine. The Optimum Healthcare deal alone is projected to lift revenue by 50 bps, a figure that many analysts view as a one‑off.
HCL Technologies is on a parallel trajectory, with its constant‑currency growth guidance sliding to 3.0%-4.0% from 1.0%-4.0% after the Jaspersoft and HPE Telco Solutions acquisitions. On an organic basis, HCLTech’s outlook narrows to 2%-3%, keeping the midpoint unchanged.
The broader IT services sector is leaning on inorganic growth to smooth earnings. Cohere, Coforge, and Hexaware each anticipate 80-820 bps lift from recent deals, but the consensus is that these boosts will be offset by AI‑driven productivity gains that erode pricing.
Valuation pressure is mounting as the NSE IT index trades at about 16x forward earnings, below its pre‑pandemic five‑year average. Citi’s model pegs Accenture at 11.7x, Capgemini at 8.7x, and Cognizant at 9.0x, underscoring the premium Indian IT stocks still command.
Looking ahead, Infosys will issue its Q2 earnings on October 12, with guidance expected to reflect the new growth band. Investors will be watching for any sign of improved discretionary tech spending and whether the acquisition‑led lift translates into a sustainable headline.