Downgrades

KPIT reported revenue and EBIT margin in line with our estimates in Q2FY26. Management expects growth to stabilise in Q3 (flat to 1% QoQ CC) and pickup from Q4.

We maintain our BUY rating on the stock.

Quarterly Update Q2FY26

Birlasoft reported stable Q2FY26 performance amidst a challenging macro environment, with dollar revenue marginally up 0.1% QoQ to USD 150.7mn and rupee revenue rising 3.4% QoQ. Manufacturing softness was partially offset by sequential growth in BFSI and Lifesciences. EBITDA margin expanded sharply to 16% from 12.4% in Q1, aided by operational efficiencies and one-offs, but the underlying margin excluding these benefits would be around 13.5%. Q2 deal wins totaled USD 107mn, with some committed deals spilling into Q3, which is expected to deliver growth in the seasonally weak quarter. The company...

Strengthening AI capabilities to spur future growth: Birlasoft continues to invest in AI, automation and data engineering capabilities, positioning itself to capture the next wave of enterprise digital transformation. Its expanding portfolio of agentic AI solutions and domain-specific digital offerings enhances differentiation against peers. As discretionary tech budgets return, these capabilities, backed by an improving deal pipeline & execution strength, should...

Hexaware Technologies (HEXT) reported revenue of USD395m in 3QCY25, up 3.4% QoQ in CC terms vs. our estimate of 3.3% QoQ CC.

Consolidated revenue in Q2FY26 rose 5.1% YoY to Rs. 13,995cr on growth across manufacturing (+5.2% YoY), banking, financial services and insurance (BFSI, +6.2% YoY), retail, logistics and transport (+7.2% YoY) segments. However, revenue fell from communications (-2.2% YoY), technology, media and entertainment (-8.8%...

Route Mobile posted a strong operating performance in Q2. Revenue grew 6.5% QoQ to Rs11.2bn, above our estimate, primarily led by international business, ILDO business’ expansion, and domestic volume growth (offset partially by lower realizations), combined with routing synergies.

We maintain a HOLD rating on the stock.

Zensar (ZENT) reported 2QFY26 with flat revenue growth (est. a decline of 0.5% CC). BFS/HLS grew 4.8%/3.9% QoQ CC, while TMT declined 10.2% QoQ CC.

SaaS-led growth driving rebound: Newgen delivered a healthy 11% YoY revenue growth in Q2FY26, led by 33% YoY growth in SaaS revenues (12% of revenue mix) and 16% YoY rise in implementation services (23% of revenue mix). The company's pivot toward annuity-based revenues is strengthening visibility, with SaaS and subscription momentum offsetting softness in traditional license sales (18% of revenue mix) across India and EMEA which are seeing delay in large license deal closures. Newgen's focus on large deal wins in the US, Europe/UK, Singapore is paying off with 15 new logo additions...

The company showcased strong strategic progress, marked by record deal wins, healthy client expansion, and increasing enterprise adoption of its proprietary AI and digital platforms. Growing traction in the modernisation programmes, deepened technology partnerships and consistent execution across key verticals highlight its strengthening market position. Management maintains growth and margin guidance, reflecting confidence in the demand environment, a scalable innovation pipeline and...

L&T Technology Services (LTTS) reported a resilient performance as revenue stood at INR 2,980cr, up 4% /15.8% QoQ/YoY, while USD revenue rose 10.4% YoY in CC term and margin improving to 13.4%. The company secured record large deals worth USD 292mn, primarily from the Sustainability and Tech segments, which both reported double-digit growth. LTTS's proactive push towards AI-driven solutions is evident in its 216 GenAI patents and successful monetization of platforms like PLxAI and QGuard.ai. Operational discipline led to stronger cash flows and reserves, while management remains optimistic...

About the stock: Mastek Ltd (Mastek) offers data, apps, cloud services to public Geographic strength and strategic focus areas: UK remains Mastek's growth anchor, up 4% QoQ and contributing 65% of revenue, driven by strong demand in Healthcare and Government segments. The company is also restructuring its North America leadership to drive Healthcare growth and emphasis remains on profitability improvement and tighter DSO management.in the Middle East. Continued focus on geo-diversification, AI-led delivery, and mid-market leadership provides visibility for steady, profitable growth through FY2627...

Decent quarter; Guidance points to muted H2 About the stock: Infosys is one of the leading IT players catering to BFSI, Retail, Strategic AI and cloud focus positions for future upside: Infosys continues to advance its AI-led transformation with 2,500+ AI projects, 250 agentic AI initiatives, and deep partnerships across the AI value chain. Proprietary...

Cyient logged a steady operating performance in DET, in Q2. DET revenue grew 1.0% QoQ (0.5% CC) to USD164.4mn. DET EBITM expanded by 16bps QoQ to 12.2%.

Infosys raised its FY26 CC revenue growth guidance to 2–3% while maintaining a 20–22% margin band, reflecting modest growth amid H2 seasonality and macro caution.

Cyient reported Q2 FY26 results with DET revenue rising 3.3% QoQ and 4.5% YoY in rupee term, while EBIT margin improved 16 bps sequentially to 12.2%. Despite wage hikes and restructuring costs (200 bps impact), cost optimization offset the pressure. PAT stood at INR 137cr, down 16% QoQ. Transportation and Network & Infrastructure units grew 3.9% and 3.6% QoQ respectively, while the semiconductor business rebounded 12% QoQ, aided by strong order intake and a USD 100mn pipeline. DLM reported strong momentum in (with 130% YoY) order-intake and double-digit margins. The group expects to be EBIT-neutral in...

Infosys reported a steady but cautious performance in Q2FY26, showcasing strong execution despite a weak demand environment. Revenue rose 2.2% sequentially and 2.9%YoY in CC term, crossing USD 5bn. Operating margin improved to 21%, supported by better efficiency under Project Maximus and stronger pricing. The company secured USD 3.1bn in large deals (67% net new) and announced an additional USD 1.6bn megadeal after the quarter, reflecting continued client trust. Free cash flow was healthy at USD 1.1bn, equal to 131% of net profit, while attrition dropped to 14.3%. Infosys continued advancing its...

We recommend a BUY rating on the stock.