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India Today
09-07-2025
- Business
- India Today
Infosys, TCS, Wipro: Will top IT companies gain momentum in Q1FY26?
India's top IT companies are stepping into Q1FY26 with little room for celebration. Despite what's typically a strong seasonal quarter, the outlook is Securities, in its earnings preview, signals a subdued performance for the sector, where even the heavyweights are struggling to regain momentum. 'Soft quarter' is the verdict across the board. Growth is likely to be muted. Deal flow isn't picking up pace. And cautious client behaviour—especially in manufacturing and hi-tech—continues to stall Infosys, and Wipro may not have much to flaunt this quarter. Equirus expects constant currency (CC) revenue growth for the top six IT firms to range between -2.6% and +1.4%, a narrow band that barely moves the needle. Even the engineering services players, often seen as growth engines, are expected to shrink by 3–3.6% might offer a slight reprieve. It's likely to post 1.4% CC growth, with some help from inorganic deals. But even here, margins are expected to dip by 10 bps thanks to wage hikes and normalised expenses. The company could tweak its FY26 guidance slightly upward—from 0–3% to 1.0–3.25%—but that's hardly a performance could be softer still. Revenues may shrink by 2.6% in CC terms, and the company may guide for another flat-to-negative quarter ahead. Meanwhile, TCS is bracing for a modest 0.4% dip, weighed down by the ramp-down of the BSNL deal and weak traction ABOUT MIDCAP IT FIRMS?While the large caps are treading water, some mid-tier players could offer a glimmer of hope. Coforge, Persistent, Zensar, eClerx, and Mphasis are expected to post QoQ growth between 1.3% and 7% in dollar terms. Coforge, in particular, is projected to lead the midcap remains bullish on Infosys and Tech Mahindra among the big names, while Zensar, KPIT, eClerx, and Mphasis stand out in the midcap universe. But overall, the firm advises investors to stay selective—valuations have already run up, and the earnings momentum just isn't keeping CLIENT DEMANDAcross the sector, demand remains cautious. Clients—especially in the U.S.—are still hesitating, with delays in project ramp-ups and muted order flows. The one exception may be BFSI, which continues to offer some tailwinds. But even here, optimism is tempered by uncertainty around global trade and tariff real story this quarter will be told in the commentary. How are clients thinking about tech budgets for FY26? Are mega deals moving forward? Are pricing pressures easing? These questions may matter more than the numbers TO WATCH?Infosys: Expect modest growth, but no fireworks. Guidance may inch up slightly, but margins could be under pressure. Project Maximus and the absence of visa costs offer some cushion, but not enough to turn the Revenue is likely to dip slightly. Deferred wage hikes may help margins, but the bigger worry is soft demand and a slowdown in large deal Still in recovery mode. The Marelli bankruptcy may cloud the outlook further, and the street will be watching for clues on deal flow and growth Tech: Seasonal softness is expected to drag down services revenue. Margins could compress by 77 bps. No change expected in its full-year Mahindra: Revenue might dip slightly, but cost optimisation (under Project Fortius) and currency gains could lift margins. Investors will look for clues on the telecom business and 5G bottom line: India's IT giants are still in wait-and-watch mode. There are pockets of stability—and a few outperformers—but the sector's broader recovery remains sluggish. For now, the real story isn't in the Q1 numbers. It's in the tone of management commentary and whether it signals a real turnaround or just more of the same.- Ends
Mint
10-06-2025
- Business
- Mint
IT companies are hunting deals rather than waiting for clients to float tenders
The country's largest information technology (IT) services companies are actively hunting for deals rather than waiting for clients to float tenders, as uncertain macroeconomic conditions and a need to outperform competition are prompting IT outsourcers to become deal hunters. While IT service providers, including Cognizant Technology Solutions Corp. and Zensar Technologies Ltd, said they are bagging deals through such client mining efforts, peers Birlasoft Ltd and Firstsource Solutions Ltd are focusing on creating large deals. Also Read | Mary Meeker's AI report: Decoding what it signals for India's tech future 'See, there are two types of large deals. One, where things are coming as RFPs (request for proposals) in the market. And the second is where you have to create large deals. So the pipeline for where we are trying to proactively create large deals is very good. The pipeline for RFPs where anyway the probability of selling is very low, that is fairly muted, and that has been muted for us for quite some time," said Manish Tandon, chief executive of Zensar Technologies, during the company's post-earnings conference on 25 April. Zensar ended last fiscal with $624.5 million in revenue, up 5.4% on a yearly basis. IT outsourcers generally win large deals through RFPs, which include a client floating a tender for IT-related work. Multiple IT outsourcers bid for such contracts and pitch their offerings to the client. Ultimately, the tech services company bidding a low price and doing more for less is awarded the contract. Also Read | AI-first startups outpace SaaS firms in funding race However, such RFPs are rare in this macroeconomic situation, with governments imposing tariffs on imports. This is causing companies to pull back their tech expenditure, which is considered non-essential at times of such uncertainty. As a result, tech services companies are actively mining clients to bag deals. Finding deals Last week, Nasdaq-listed Cognizant announced that it bagged two deals through its mining efforts, fetching upwards of $500 million in revenue. Surya Gummadi, the company's Americas president, said in a fireside chat with Bank of America analyst Jason Kupferberg last week that both mega deals came after Cognizant passed on artificial intelligence (AI)-led productivity gains to clients, leading to additional investments in IT work. 'Both the mega deals that I spoke about, they were originated by us, they did not come from an RFP," said Gummadi, adding that 'the ideas originated from us." Cognizant ended last year with $19.74 billion in revenue, up 1.98% year-on-year. Also Read | Tech industry fights to save clean-energy tax credits While Cognizant and Zensar spoke about client mining paying dividends, two of its peers highlighted a shift in focus. 'We have identified an existing very senior leader to take the mantle of opening accounts, and we have identified about 19 or 20 accounts that we are going to go after, so that we can create pipeline and close them," said Angan Guha, chief executive officer (CEO) of Birlasoft, in a post-earnings call with analysts on 29 May. His views were echoed by a larger peer, which is the newest entrant to India's $1 billion IT club. 'We are engaged very deeply with all our existing customers. And at this stage, we are trying to see how we can help them and use the current environment actually to our advantage to provide them proposals which allow them to create operational efficiencies further in their business," said Ritesh Idnani, CEO of Firstsource Solutions, as part of his prepared remarks during the post-earnings analyst call on 28 April. Active search Notably, each of the companies ramping up new deal creation,except Cognizant, earns less than $1 billion in revenue annually. Firstsource Solutions and Birlasoft reported $944 million and $635 million in revenue for the year ended March 2025, respectively. At least one analyst attributed the drive to a lack of macroeconomic clarity. 'As it is, demand is slow, and outsourcing deals have slowed down because we are entering a weak economic situation. In such a scenario, IT outsourcers have to create their own demand rather than just for deals to come to them through RFPs," said Pramod Gubbi, founder of Marcellus Investment flip-flops and an uncertain demand environment have prompted large Fortune companies to stop awarding large IT deals. Gubbi added that smaller IT outsourcers first try to win small deals and get a foot in the door of large clients. Once they have a fair understanding of the client's IT systems and the extra IT work that they can do to modernize them, they mine those accounts for more IT work. A second analyst attributed the reason behind companies chasing large deals to eliminating competition. 'The moment a deal gets into the RFP stage, there will be price competition. If IT service providers have an existing relationship with the client, they will understand the problem and will try to proactively create a solution that can help them get ahead of their competition and eliminate chances of a price war," said Abhishek Kumar, research analyst at JM Financial. Kumar added that AI is an integral part of such conversations when it comes to creating large deals. Another analyst said this was an effort by IT outsourcers to increase their footprint in their accounts. "This is an aggressive move to encourage enterprise clients to consolidate more of their services with them, and benefit from economies at scale, take advantage of more automation and AI," said Phil Fersht, CEO of HFS Research. The bid to push clients for more business comes as Fortune companies are narrowing the number of IT outsourcers they work with.
Business Wire
20-05-2025
- Business
- Business Wire
Zensar Partners With ManageEngine to Drive IT Transformation and Enhance Enterprise Efficiency
AUSTIN, Texas--(BUSINESS WIRE)-- ManageEngine, a division of Zoho Corp and a leading provider of enterprise IT management solutions, and Zensar Technologies, a leading experience, engineering, and engagement technology solutions company, today announced a strategic partnership aimed at transforming enterprise IT management. This synergy will address critical industry challenges such as fragmented IT ecosystems and cater to the growing need for real-time observability and unified operations for today's enterprises. Zensar, part of RPG Group, is recognized worldwide for its ability to deliver innovative solutions and drive business transformation across industries such as banking, financial services, insurance, healthcare, manufacturing, and retail. Through this partnership, Zensar will be leveraging ManageEngine's comprehensive suite of enterprise IT management solutions, including its IT service management (ITSM) and IT operations management (ITOM) suite of products, to offer a unified approach to IT service management, application performance monitoring, and infrastructure observability to its customers. 'Enterprises today face increasing complexity in managing their IT infrastructure, affecting productivity and overall success," said Promoth Kumar, Chief Revenue Officer, ManageEngine. "This partnership with Zensar will provide businesses with a unified solution to streamline IT operations and enhance service delivery. By combining Zensar's expertise with our advanced IT solutions, we aim to deliver real-time visibility and proactive incident management, ensuring seamless operations.' The collaboration will enable organizations to achieve faster incident response times, enhanced monitoring, and reduced operational costs. Businesses can expect a more resilient IT infrastructure, improved service delivery, and data-driven decision-making through actionable insights that boost operational efficiency. Jitendra Nandwani, SVP and head of cloud, infrastructure and security services at Zensar Technologies, said, "Zensar has [had] a strong and successful collaboration with ManageEngine for over a decade, founded on mutual trust, transparency and shared goals. Our collaboration spans across three strategic pillars: reselling, system integrator, and technology handshake—where we consistently deliver synergistic outcomes. This partnership, a natural elevation of our relationship, enables us to respond swiftly and effectively to our clients on their digital transformation journeys, ensuring their business services operate reliably and efficiently." Together, ManageEngine and Zensar are committed to help organizations navigate through the complexities of modern IT environments in an ever-evolving digital landscape. About Zensar At Zensar, we are experience-led everything. We conceptualize, design, engineer, market, and manage digital solutions and experiences for 145+ leading enterprises. Using our 3Es of experience, engineering, and engagement, we harness the power of technology, creativity, and insight to deliver impact. Part of the $4.8 billion RPG Group, we are headquartered in Pune, India. Our 10,000+ employees work across 30+ locations worldwide, including in Milpitas, Seattle, Princeton, Zurich, Cape Town, London, Singapore, and Mexico City. About ManageEngine ManageEngine is a division of Zoho Corporation and a leading provider of IT management solutions for organizations across the world. With a powerful, flexible, and AI-powered digital enterprise management platform, we help businesses get their work done from anywhere and everywhere—better, safer, and faster. To learn more, visit
Yahoo
26-02-2025
- Business
- Yahoo
Bitdeer Technologies Group (BTDR) Reports Revenue Decline, Focuses on AI & HPC Expansion
We recently compiled a list of the . In this article, we are going to take a look at where Bitdeer Technologies Group (NASDAQ:BTDR) stands against the other AI stocks. Just as the AI industry was catching up with the launch of the DeepSeek AI R1 model in January, sources divulged that the Hangzhou-based company is planning to release the R2 model as early as possible. The company was previously aiming to launch the R2 model in May. DeepSeek expects the R2 model to exhibit better coding and reasoning capabilities in multiple languages. The R1 model, which was built cost-effectively using relatively less powerful GPUs, triggered a $1 trillion sell-off in US and European markets. The speculation around the R2 model could potentially drive further volatility in America's AI landscape as investors question the narrative that US-based AI companies require hundreds of billions of dollars to develop AI systems. "The launch of DeepSeek's R2 model could be a pivotal moment in the AI industry. DeepSeek's success at creating cost-effective AI models would likely spur companies worldwide to accelerate their own efforts ... breaking the stranglehold of the few dominant players in the field." -said Vijayasimha Alilughatta, COO Zensar. We selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey's database of over 1000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A construction team in a mining datacenter building work site with plans and equipment in hand. Bitdeer Technologies Group (NASDAQ:BTDR) offers blockchain and HPC solutions. The company's crypto-mining solutions include data center design, equipment procurement, and hosting services. Bitdeer AI, part of Bitdeer Technologies Group (NASDAQ:BTDR), provides AI cloud services for developers to train and scale AI and HPC workloads through AI infrastructure supported by the NVIDIA DGX SuperPOD with H100 GPUs, DDN Storage, and InfiniBand Networks. On February 25th, Bitdeer Technologies Group (NASDAQ:BTDR) posted a drop in year-over-year (YoY) revenue for Q4 to $69 million from $114.8 million. The company's loss per share in Q4 also increased YoY to $3.22 per share from $0.05. Bitdeer's chief business officer, Matt Kong, attributed the results to limited hashrate growth as the company focused more on the development of proprietary ASIC technology. 'In terms of our energy assets, our global power capacity now exceeds 2.6 GWs, following the Foxcreek, Alberta acquisition, and over 1 GW is scheduled to be energized over the course of 2025. This puts us in an advantageous position to deploy our SEALMINER machines for self-mining and also capitalize on the significant demand for HPC and AI datacenters. We are actively working with top datacenter developers and advisors to establish long-term partnerships, which will position Bitdeer to play a significant role in addressing the shortage of reliable power for AI datacenters.' -said Matt Kong, Chief Business Officer at Bitdeer Technologies Group. Overall BTDR ranks 2nd on our list of AI stocks that investors likely missed. While we acknowledge the potential of BTDR as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTDR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
