Axis Securities
Target: ₹1,620
CMP: ₹1,450.85
operates through two segments — Information Technology (IT) Services and Business Processing Outsourcing (BPO). It delivers transformative solutions through a strong blend of digital innovation and deep industry expertise.
The management anticipates that AI-led legacy modernisation will be a massive opportunity over the next two-three years, particularly in sectors with high custom software footprints like financial services and healthcare.
In Q3FY26, the company reported record quarterly bookings of $1.1 billion, the highest in five years, driving 48 per cent year-on-year growth in LTM deal wins.
This momentum is expected to continue further. The company secured a strategic over $500-million five-year contract with a leading European telecom provider. Large deals now constitute a greater share of TCV, indicating improved client confidence and wallet share
In Q3FY26, the management reaffirmed its FY27 ambition to outgrow peers and reach a 15 per cent EBIT margin. The overall profitability momentum is expected to continue in coming quarters.
Despite the challenging environment, the EBIT margin commitments of 15 per cent for FY27 remain intact, led by productivity and cost efficiency programmes.
Strong revenue visibility enhances our confidence in the company’s growth prospects and recommend a BUY rating on the stock with a TP of ₹1,620/share, implying an upside of 10 per cent from the CMP.