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Indian (NIFTY) Tech Sector Analysis

UpdatedJan 31, 2026
DataAggregated Company Financials
Companies355
  • 7D-0.2%
  • 3M-0.09%
  • 1Y-14.7%
  • YTD-2.7%

Over the last 7 days, the Tech industry has remained flat, although notably Waaree Energies gained 7.2%. As for the longer term, the industry has declined 15% in the last year. Earnings are forecast to grow by 12% annually.

Sector Valuation and Performance

Has the Indian Tech Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 01 Feb 2026₹39.0t₹11.8t₹1.5t26.5x26.3x3.3x
Tue, 30 Dec 2025₹40.1t₹11.6t₹1.5t29.2x26.7x3.5x
Thu, 27 Nov 2025₹40.0t₹11.5t₹1.5t32.8x26.8x3.5x
Sat, 25 Oct 2025₹39.0t₹11.3t₹1.5t33.4x26.7x3.4x
Mon, 22 Sep 2025₹39.6t₹11.2t₹1.5t34.1x27.3x3.5x
Wed, 20 Aug 2025₹37.4t₹11.1t₹1.4t32x25.9x3.4x
Fri, 18 Jul 2025₹39.6t₹10.9t₹1.4t34.6x28x3.6x
Sun, 15 Jun 2025₹40.8t₹10.9t₹1.4t34.6x29x3.8x
Tue, 13 May 2025₹40.5t₹10.7t₹1.4t31.3x29.2x3.8x
Thu, 10 Apr 2025₹35.1t₹10.7t₹1.4t28.8x25.2x3.3x
Sat, 08 Mar 2025₹39.8t₹10.7t₹1.4t30.6x28.6x3.7x
Mon, 03 Feb 2025₹44.2t₹10.5t₹1.4t37.7x32.1x4.2x
Wed, 01 Jan 2025₹46.7t₹10.3t₹1.3t42x35.1x4.5x
Fri, 29 Nov 2024₹46.1t₹10.2t₹1.3t41.1x34.9x4.5x
Sun, 27 Oct 2024₹44.3t₹10.1t₹1.3t39.2x33.6x4.4x
Tue, 24 Sep 2024₹45.3t₹9.9t₹1.3t42.2x35.8x4.6x
Thu, 22 Aug 2024₹44.9t₹9.9t₹1.3t41.5x35.4x4.6x
Sat, 20 Jul 2024₹43.3t₹9.8t₹1.3t42.7x34.5x4.4x
Mon, 17 Jun 2024₹38.2t₹9.7t₹1.2t41.4x30.9x3.9x
Wed, 15 May 2024₹36.6t₹9.7t₹1.2t44.5x29.7x3.8x
Fri, 12 Apr 2024₹38.3t₹9.6t₹1.2t46.7x31.7x4x
Sun, 10 Mar 2024₹39.8t₹9.6t₹1.2t43.5x33x4.2x
Tue, 06 Feb 2024₹39.3t₹9.4t₹1.2t46.9x32.6x4.2x
Thu, 04 Jan 2024₹37.1t₹9.5t₹1.2t46.6x30.2x3.9x
Sat, 02 Dec 2023₹35.3t₹9.5t₹1.2t41.1x28.7x3.7x
Mon, 30 Oct 2023₹32.8t₹9.4t₹1.2t42.9x26.9x3.5x
Wed, 27 Sep 2023₹34.3t₹9.3t₹1.2t40.1x28.2x3.7x
Fri, 25 Aug 2023₹32.8t₹9.3t₹1.2t39.1x27.1x3.5x
Sun, 23 Jul 2023₹31.7t₹9.2t₹1.2t36.9x26.2x3.5x
Tue, 20 Jun 2023₹30.6t₹9.0t₹1.2t34.5x25.8x3.4x
Thu, 18 May 2023₹29.7t₹9.0t₹1.2t29.7x25x3.3x
Sat, 15 Apr 2023₹29.6t₹8.7t₹1.2t27.7x25.3x3.4x
Mon, 13 Mar 2023₹31.6t₹8.9t₹1.2t25.2x27.4x3.5x
Wed, 08 Feb 2023₹32.6t₹8.9t₹1.2t28.2x28.3x3.7x
Price to Earnings Ratio

28.3x


Total Market Cap: ₹32.6tTotal Earnings: ₹1.2tTotal Revenue: ₹8.9tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Tech Sector Price to Earnings3Y Average 29.4x202420252026
Current Industry PE
  • Investors are pessimistic on the Indian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 26.3x which is lower than its 3-year average PE of 29.4x.
  • The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
  • The earnings for companies in the Information Technology industry have grown 8.8% per year over the last three years.
  • Revenues for these companies have grown 9.9% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Indian Tech sector?

IN Market1.81%
Tech-0.16%
Communications7.06%
Electronic Equipment and Components5.89%
Semiconductors4.44%
Tech Hardware1.90%
IT-0.77%
Software-0.93%
Industry PE
  • Investors are most optimistic about the Tech Hardware industry even though it's trading below its 3-year average PE ratio of 113x.
    • Analysts expect its future annual earnings growth (39.3%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 51% over the next 5 years.
  • This is better than its past earnings growth rate of 35% per year.
  • In contrast, the IT industry is expected to see its earnings grow by 10% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
WAAREEENER Waaree Energies₹2.79k7.2%
+₹54.1b		16.0%PE24.5x
TECHM Tech Mahindra₹1.74k2.5%
+₹37.2b		5.9%PE33.4x
LTIM LTIMindtree₹5.97k1.4%
+₹24.0b		1.2%PE37.3x
517174 Honeywell Automation India₹33.49k6.8%
+₹18.7b		-14.9%PE57.4x
SYRMA Syrma SGS Technology₹761.0014.4%
+₹18.3b		43.0%PE51.9x

Latest News

SYRMA
₹761.00
Syrma SGS Technology
7D
14.4%
1Y
43.0%
KPITTECH
₹1,041.90
KPIT Technologies
7D
-6.5%
1Y
-26.4%
HCLTECH
₹1,695.60
HCL Technologies
7D
-0.7%
1Y
0.09%

HCL Technologies Limited's (NSE:HCLTECH) Shares May Have Run Too Fast Too Soon

Jan 31
HCL Technologies Limited's (NSE:HCLTECH) Shares May Have Run Too Fast Too Soon
REDINGTON
₹271.45
Redington
7D
8.3%
1Y
33.1%
WAAREEENER
₹2,787.50
Waaree Energies
7D
7.2%
1Y
16.0%

With EPS Growth And More, Waaree Energies (NSE:WAAREEENER) Makes An Interesting Case

Jan 30
With EPS Growth And More, Waaree Energies (NSE:WAAREEENER) Makes An Interesting Case
INFY
₹1,641.00
Infosys
7D
-1.8%
1Y
-11.4%

INFY: Gradual IT Spend Recovery And AI Adoption Will Shape 2026 Outlook

Infosys' updated narrative reflects a modestly higher fair value estimate of ₹1,820.45 from ₹1,776.09, broadly in line with the series of recent analyst price target increases as analysts point to a supportive setup for services demand and a slightly adjusted view on growth, margins, discount rate and future P/E assumptions. Analyst Commentary Recent Street research around Infosys clusters around a series of modest price target increases in US$, with analysts broadly pointing to a more constructive setup for IT services heading into 2026 and a view that current valuations remain discounted relative to that backdrop.
533581
₹547.55
PG Electroplast
7D
7.3%
1Y
-31.4%

533581: Fiscal 2026 Guidance Will Support Further Repricing Upside

Analysts now keep their price view on PG Electroplast broadly in line with prior estimates, with the implied fair value steady at ₹698.88. A slightly higher discount rate and marginally adjusted long term revenue growth, profit margin and future P/E inputs offset each other in their updated work.
PREMIERENE
₹719.90
Premier Energies
7D
5.4%
1Y
-34.1%
504067
₹650.15
Zensar Technologies
7D
-7.8%
1Y
-32.8%
TCS
₹3,123.90
Tata Consultancy Services
7D
-1.2%
1Y
-23.3%

TCS: AI Data Centers Will Drive Future Upside Despite Legal Overhang

The analyst fair value estimate for Tata Consultancy Services has been adjusted from ₹3,558.47 to ₹3,617.91 as analysts factor in updated views on revenue growth, profit margins, the discount rate, and future P/E assumptions. What's in the News U.S. Court of Appeals for the Fifth Circuit upheld an award of about US$194m to DXC subsidiary CSC in a trade secret misappropriation case, affirming earlier findings that Tata Consultancy Services had intentionally and maliciously misused CSC's trade secrets (Lawsuits & Legal Issues).
PERSISTENT
₹6,035.00
Persistent Systems
7D
-1.9%
1Y
1.7%

PERSISTENT: Experience Studio Expansion And Dividend Will Support A Higher Future Multiple

Narrative Update on Persistent Systems Analysts have lifted their price target on Persistent Systems from ₹7,536 to ₹8,865, citing refreshed assumptions for slightly higher revenue growth, improved profit margin, a lower discount rate, and a higher future P/E multiple in their models. What's in the News The Board of Directors declared an interim dividend of ₹22 per share on a face value of ₹5 for the financial year from April 1, 2025 to March 31, 2026, with a record date of January 27, 2026 and payment expected within 30 days of January 20, 2026 (company announcement).
532466
₹7,757.45
Oracle Financial Services Software
7D
-2.5%
1Y
-12.8%
TECHM
₹1,743.10
Tech Mahindra
7D
2.5%
1Y
5.9%

TECHM: Higher Margin Assumptions Will Likely Prove Too Optimistic

Narrative Update Analysts have raised their price target on Tech Mahindra to ₹1,347 from about ₹1,171, citing updated assumptions for revenue growth, profit margins, discount rate and future P/E that collectively support a higher fair value estimate. Analyst Commentary While the higher fair value estimate for Tech Mahindra reflects more constructive assumptions on growth and profitability, bearish analysts would still flag several risks that could cap valuation if execution does not line up with these inputs.
LTIM
₹5,974.50
LTIMindtree
7D
1.4%
1Y
1.2%

LTIM: Future Performance Will Reflect AI Tax And Cyber Partnerships While Fairly Valued

Analysts have raised their price target for LTIMindtree to ₹6,391 from ₹6,088, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E that feed into their revised valuation framework. What's in the News Won the Insight 2.0 project from the Central Board of Direct Taxes to build an AI powered tax analytics platform for India, a 7 year mandate valued at around ₹30,000 million (Key Developments).
507685
₹236.70
Wipro
7D
-0.7%
1Y
-22.4%
517174
₹33,492.60
Honeywell Automation India
7D
6.8%
1Y
-14.9%