HDFC Securities sees muted Q4 for IT pack; picks Infosys, HCL and 5 more stocks for up to 57% gains

The Indian IT services sector braces for another muted quarter in Q4FY26E, with tier-1 players' growth projected at -1.1 to +0.9% QoQ CC and mid-tier companies' growth ranging from -1.8% to +3.4%, HDFC Securities said in a note. While valuations have reset to pre-COVID levels and turned attractive post-correction, the sector's growth recovery now hinges on pure execution capability as new deals are mostly outcome-driven, the brokerage said. It has recommended a 'Buy' view on seven stocks. Take a look: IT Growth Outlook