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Indian (NIFTY) IT Industry Analysis

UpdatedMay 29, 2026
DataAggregated Company Financials
Companies160
  • 7D-0.7%
  • 3M-8.2%
  • 1Y-27.3%
  • YTD-26.2%

The IT is pretty flat in the last 7 days, but Tech Mahindra has stood out, gaining 4.3%. Unfortunately though, the industry is down 27% over the past 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
Fri, 29 May 2026₹24.4t₹9.3t₹1.3t22.9x18.2x2.6x
Sun, 26 Apr 2026₹24.4t₹9.2t₹1.3t21.8x18.4x2.7x
Tue, 24 Mar 2026₹24.8t₹9.0t₹1.3t19.1x19.2x2.8x
Thu, 19 Feb 2026₹27.9t₹8.9t₹1.3t22.2x21.8x3.1x
Sat, 17 Jan 2026₹33.3t₹8.8t₹1.3t25.3x26x3.8x
Mon, 15 Dec 2025₹33.0t₹8.8t₹1.3t25.3x25.2x3.8x
Wed, 12 Nov 2025₹31.3t₹8.7t₹1.3t26.6x24x3.6x
Fri, 10 Oct 2025₹31.0t₹8.6t₹1.3t27.6x24x3.6x
Sun, 07 Sep 2025₹30.2t₹8.5t₹1.3t26.2x23.5x3.5x
Tue, 05 Aug 2025₹30.6t₹8.5t₹1.3t27.7x23.9x3.6x
Thu, 03 Jul 2025₹33.9t₹8.3t₹1.3t30.4x27.1x4.1x
Sat, 31 May 2025₹33.1t₹8.3t₹1.3t29.4x26.5x4x
Mon, 28 Apr 2025₹31.8t₹8.3t₹1.3t27x25.4x3.8x
Wed, 26 Mar 2025₹33.7t₹8.2t₹1.3t27.4x26.9x4.1x
Fri, 21 Feb 2025₹36.2t₹8.3t₹1.3t29.2x28.8x4.4x
Sun, 19 Jan 2025₹37.4t₹8.1t₹1.2t35.3x30.1x4.6x
Tue, 17 Dec 2024₹40.6t₹8.0t₹1.2t38.2x33.8x5.1x
Thu, 14 Nov 2024₹37.9t₹8.0t₹1.2t37.5x31.6x4.8x
Sat, 12 Oct 2024₹38.0t₹7.9t₹1.2t41.4x32.4x4.8x
Mon, 09 Sep 2024₹38.7t₹7.8t₹1.2t40x33.1x4.9x
Wed, 07 Aug 2024₹35.7t₹7.8t₹1.2t37.5x30.5x4.6x
Fri, 05 Jul 2024₹34.8t₹7.7t₹1.1t39.6x30.4x4.5x
Sun, 02 Jun 2024₹30.5t₹7.7t₹1.1t34.6x26.8x3.9x
Tue, 30 Apr 2024₹31.8t₹7.7t₹1.1t39x28x4.1x
Thu, 28 Mar 2024₹32.1t₹7.7t₹1.1t32x28.9x4.2x
Sat, 24 Feb 2024₹35.2t₹7.7t₹1.1t37.6x31.7x4.6x
Mon, 22 Jan 2024₹34.3t₹7.8t₹1.1t41x30.1x4.4x
Wed, 20 Dec 2023₹33.4t₹7.8t₹1.1t43.5x29.3x4.3x
Fri, 17 Nov 2023₹29.5t₹7.7t₹1.1t39.4x26x3.8x
Sun, 15 Oct 2023₹29.9t₹7.6t₹1.1t37.5x26.3x3.9x
Tue, 12 Sep 2023₹30.1t₹7.6t₹1.1t36.6x26.8x4x
Thu, 10 Aug 2023₹28.9t₹7.6t₹1.1t36.5x25.8x3.8x
Sat, 08 Jul 2023₹27.8t₹7.4t₹1.1t32.7x25.3x3.8x
Mon, 05 Jun 2023₹27.7t₹7.4t₹1.1t30x25.2x3.7x
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 18.2x 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 6.8% per year over the last three years.
  • Revenues for these companies have grown 7.8% 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 Market1.84%
Tech0.61%
IT-0.67%
Internet Services and Infrastructure13.93%
Data Processing Services1.05%
IT Consulting-0.72%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 67.1x.
    • Analysts expect its future annual earnings growth (15.4%) to be largely in line with prior year's earnings growth.
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 roughly in line with its past earnings growth rate.
  • 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
TECHM Tech Mahindra₹1.48k4.3%
+₹54.6b		-5.7%PE27.3x
HCLTECH HCL Technologies₹1.18k1.7%
+₹53.6b		-27.7%PE17.8x
PERSISTENT Persistent Systems₹5.19k4.5%
+₹33.4b		-7.9%PE41.6x
500463 Black Box₹1.04k9.3%
+₹16.4b		102.2%PE89.1x
LTM LTM₹4.06k1.3%
+₹16.0b		-19.9%PE24x

Latest News

501421
₹5,231.85
TechNVision Ventures
7D
-3.1%
1Y
23.0%
PERSISTENT
₹5,194.30
Persistent Systems
7D
4.5%
1Y
-7.9%
Narrative Update • May 28

PERSISTENT: AI Partnerships And Dividend Payout Will Support Balanced Future Outlook

Analysts have trimmed their price target on Persistent Systems from about ₹6,603 to roughly ₹5,597, reflecting updated assumptions around discount rates, revenue growth, profit margins, and a lower future P/E of about 43x. What's in the News Persistent is collaborating with the Indian Institute of Management Ahmedabad on the "AI Value Compass" framework, aimed at helping enterprises prioritize and scale AI investments across areas such as business alignment, people readiness, operations, data and governance.
531035
₹29.93
Eraaya Lifespaces
7D
-10.9%
1Y
-32.8%
500463
₹1,044.60
Black Box
7D
9.3%
1Y
102.2%
544021
₹621.05
Protean eGov Technologies
7D
-4.1%
1Y
-35.5%
COFORGE
₹1,421.80
Coforge
7D
2.5%
1Y
-16.9%
TATATECH
₹705.30
Tata Technologies
7D
5.1%
1Y
-8.8%
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
₹2,258.90
Tata Consultancy Services
7D
-2.5%
1Y
-34.8%
HCLTECH
₹1,183.80
HCL Technologies
7D
1.7%
1Y
-27.7%
TECHM
₹1,483.90
Tech Mahindra
7D
4.3%
1Y
-5.7%
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.
526433
₹3,167.85
ASM Technologies
7D
-3.5%
1Y
30.3%
INFY
₹1,160.90
Infosys
7D
-1.2%
1Y
-25.7%
SONATSOFTW
₹265.10
Sonata Software
7D
-1.0%
1Y
-35.2%
Narrative Update • May 13

SONATSOFTW: Leadership Transition And AI Focus Will Support Perceived Undervalued Upside

Analysts have modestly raised their price target on Sonata Software from ₹339.71 to ₹346.14, citing updated assumptions around revenue growth, profit margins, a slightly lower discount rate, and a revised future P/E multiple. What's in the News A board meeting is scheduled for May 7, 2026 to review and approve audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, and to consider a final dividend for FY 2025-26 (company filing).
LTM
₹4,061.60
LTM
7D
1.3%
1Y
-19.9%
507685
₹204.20
Wipro
7D
0.5%
1Y
-18.2%
HEXT
₹508.00
Hexaware Technologies
7D
-1.2%
1Y
-40.8%
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...