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Indian (NIFTY) IT Industry Analysis

UpdatedMay 27, 2026
DataAggregated Company Financials
Companies160
  • 7D-1.1%
  • 3M-7.9%
  • 1Y-26.9%
  • YTD-26.1%

Over the last 7 days, the IT industry has dropped 1.1%, driven by Tata Consultancy Services declining 2.2%. Overall the industry is down 27% in 12 months. Looking forward, earnings are forecast to grow by 8.5% annually.

Industry Valuation and Performance

Has the Indian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 May 2026₹24.4t₹9.3t₹1.3t21.8x18.3x2.6x
Fri, 24 Apr 2026₹25.7t₹9.1t₹1.3t21.8x19.6x2.8x
Sun, 22 Mar 2026₹24.9t₹9.0t₹1.3t19.6x19.2x2.8x
Tue, 17 Feb 2026₹27.9t₹8.9t₹1.3t21.3x21.8x3.1x
Thu, 15 Jan 2026₹32.5t₹8.8t₹1.3t25.4x25.3x3.7x
Sat, 13 Dec 2025₹33.0t₹8.7t₹1.3t25.3x25.2x3.8x
Mon, 10 Nov 2025₹30.5t₹8.7t₹1.3t27.6x23.4x3.5x
Wed, 08 Oct 2025₹30.2t₹8.6t₹1.3t27.9x23.4x3.5x
Fri, 05 Sep 2025₹30.6t₹8.5t₹1.3t26.5x23.8x3.6x
Sun, 03 Aug 2025₹30.1t₹8.5t₹1.3t28x23.5x3.5x
Tue, 01 Jul 2025₹34.0t₹8.4t₹1.3t29.5x27.2x4.1x
Thu, 29 May 2025₹33.3t₹8.3t₹1.3t28.3x26.6x4x
Sat, 26 Apr 2025₹31.8t₹8.3t₹1.3t27.2x25.4x3.8x
Mon, 24 Mar 2025₹32.9t₹8.3t₹1.3t26.8x26.2x4x
Wed, 19 Feb 2025₹36.3t₹8.2t₹1.2t28.7x29.1x4.5x
Fri, 17 Jan 2025₹38.3t₹8.1t₹1.2t35.4x31.3x4.7x
Sun, 15 Dec 2024₹41.0t₹8.0t₹1.2t38.3x34.1x5.1x
Tue, 12 Nov 2024₹38.2t₹8.0t₹1.2t37.2x31.9x4.8x
Thu, 10 Oct 2024₹38.4t₹7.8t₹1.2t39.1x32.9x4.9x
Sat, 07 Sep 2024₹38.7t₹7.8t₹1.2t40x33.1x4.9x
Mon, 05 Aug 2024₹36.7t₹7.8t₹1.2t40.4x31.4x4.7x
Wed, 03 Jul 2024₹34.5t₹7.7t₹1.1t37x30.2x4.5x
Fri, 31 May 2024₹30.9t₹7.7t₹1.1t35.1x27.1x4x
Sun, 28 Apr 2024₹31.8t₹7.7t₹1.1t39.8x28.1x4.1x
Tue, 26 Mar 2024₹32.9t₹7.7t₹1.1t34x29.6x4.3x
Thu, 22 Feb 2024₹34.7t₹7.7t₹1.1t38.3x31.2x4.5x
Sat, 20 Jan 2024₹34.8t₹7.8t₹1.1t44.9x30.5x4.4x
Mon, 18 Dec 2023₹33.8t₹7.8t₹1.1t43x29.6x4.3x
Wed, 15 Nov 2023₹28.8t₹7.7t₹1.1t38.3x25.4x3.7x
Fri, 13 Oct 2023₹29.9t₹7.6t₹1.1t38x26.4x3.9x
Sun, 10 Sep 2023₹29.9t₹7.6t₹1.1t37.4x26.6x4x
Tue, 08 Aug 2023₹28.9t₹7.5t₹1.1t36.9x25.8x3.8x
Thu, 06 Jul 2023₹28.1t₹7.4t₹1.1t32.9x25.6x3.8x
Sat, 03 Jun 2023₹27.7t₹7.4t₹1.1t28.8x25.2x3.7x
Price to Earnings Ratio

25.2x


Total Market Cap: ₹27.7tTotal Earnings: ₹1.1tTotal Revenue: ₹7.4tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian IT Industry Price to Earnings3Y Average 26.9x202420252026
Current Industry PE
  • Investors are pessimistic on the Indian IT 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 18.3x which is lower than its 3-year average PE of 26.9x.
  • The 3-year average PS ratio of 4.0x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 6.6% per year over the last three years.
  • Revenues for these companies have grown 7.7% 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 industry?

IN Market1.96%
Tech0.37%
IT-1.08%
Internet Services and Infrastructure19.69%
Data Processing Services2.86%
IT Consulting-1.15%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 446x.
    • It looks like they are confident that earnings will grow faster in the future than they have historically.
  • Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 26.9x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 15% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.5% 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
507685 Wipro₹203.854.5%
+₹91.2b		-17.9%PE16.2x
TATATECH Tata Technologies₹706.305.6%
+₹15.3b		-8.6%PE52.5x
E2E E2E Networks₹3.88k22.3%
+₹14.3b		35.6%PS31.8x
526299 Mphasis₹2.26k2.0%
+₹8.4b		-10.7%PE23.2x
500463 Black Box₹978.603.6%
+₹6.3b		105.0%PE85.1x

Latest News

500463
₹978.60
Black Box
7D
3.6%
1Y
105.0%
539895
₹21.65
Spice Lounge Food Works
7D
27.2%
1Y
9.2%
504067
₹488.15
Zensar Technologies
7D
-1.2%
1Y
-41.2%
Narrative Update • May 23

504067: Future Upside Will Hinge On Dividend And Zambia Expansion Execution

Analysts have reiterated their ₹695 price target on Zensar Technologies, citing updated assumptions that include a revised discount rate of 14.80%, revenue growth of 8.93%, profit margin of 13.85%, and a forward P/E of 23.24x. What's in the News A board meeting is scheduled for April 24, 2026, to consider and approve audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, along with the auditor's report, and to recommend a dividend for the 2025-26 financial year, if any (company filing).
COFORGE
₹1,422.80
Coforge
7D
0.8%
1Y
-15.9%
TATATECH
₹706.30
Tata Technologies
7D
5.6%
1Y
-8.6%
Narrative Update • May 21

TATATECH: Special Dividend And Margin Pressure Will Sustain Overvaluation Risk

Analysts have maintained the ₹470 price target for Tata Technologies, with slightly revised assumptions around discount rate, revenue growth, profit margin and future P/E, reflecting a more fine-tuned view of the stock's risk and earnings profile. What's in the News Tata Technologies recommended a one-time special dividend of ₹3.35 per equity share of face value ₹2 for the financial year ended 31 March 2026, subject to shareholder approval at the AGM, with payment expected within 30 days of the meeting if approved (Key Developments).
TCS
₹2,276.20
Tata Consultancy Services
7D
-2.2%
1Y
-34.9%
HCLTECH
₹1,161.90
HCL Technologies
7D
-1.5%
1Y
-29.7%
TECHM
₹1,458.70
Tech Mahindra
7D
-0.6%
1Y
-8.4%
Narrative Update • May 18

TECHM: Richer P E And Partnerships Will Shape Balanced Future Returns

Analysts have lifted Tech Mahindra's fair value estimate from ₹1,214 to ₹1,272, citing a lower discount rate and higher future P/E assumptions, even as they factor in more moderate revenue growth and profit margin expectations. Analyst Commentary Recent commentary around Tech Mahindra highlights a mix of optimism on valuation assumptions and caution around the company’s ability to deliver on growth and profitability expectations.
INFY
₹1,167.70
Infosys
7D
-2.4%
1Y
-25.6%
LTM
₹3,970.40
LTM
7D
-6.7%
1Y
-22.3%
526299
₹2,264.40
Mphasis
7D
2.0%
1Y
-10.7%
Narrative Update • May 12

526299: Flagstar Infrastructure Modernization And AI Program Will Support Future Earnings

Analysts have trimmed their fair value estimate for Mphasis from about ₹2,716.83 to roughly ₹2,646.33. This reflects updated assumptions around the stock's discount rate, revenue growth outlook, profit margin profile, and future P/E multiple.
507685
₹203.85
Wipro
7D
4.5%
1Y
-17.9%
HEXT
₹507.90
Hexaware Technologies
7D
-0.5%
1Y
-38.1%
Analysis Article • May 09

Hexaware Technologies Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Hexaware Technologies Limited ( NSE:HEXT ) had a good week, as its shares rose 8.5% to close at ₹486...
RSYSTEMS
₹265.90
R Systems International
7D
-4.5%
1Y
-29.3%
PERSISTENT
₹5,105.80
Persistent Systems
7D
0.8%
1Y
-9.6%
Narrative Update • May 06

PERSISTENT: AI Fraud And Healthcare Solutions Will Support Future Rerating Potential

Analysts have trimmed their price target on Persistent Systems from ₹7,662.96 to ₹6,600, reflecting updated assumptions around slightly slower revenue growth, a modestly lower discount rate, a higher profit margin outlook, and a revised future P/E of 46.09 from 58.44. What's in the News The Board has recommended a final dividend of ₹18 per equity share with a face value of ₹5 for the financial year ended March 31, 2026, subject to shareholder approval at the 36th Annual General Meeting (Key Developments).
E2E
₹3,884.70
E2E Networks
7D
22.3%
1Y
35.6%