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Indian (NIFTY) IT Industry Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies160
  • 7D0.04%
  • 3M-25.1%
  • 1Y-24.4%
  • YTD-24.2%

Last week, the IT industry hasn't moved much but Tech Mahindra is up 3.9% in that time. As for the longer term, the industry has declined 24% in the last year. As for the next few years, earnings are expected to grow by 10% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Mon, 01 May 2023₹26.4t₹7.4t₹1.1t26x24x3.6x
Wed, 29 Mar 2023₹26.2t₹7.1t₹1.1t23.5x24.3x3.7x
Price to Earnings Ratio

24.3x


Total Market Cap: ₹26.2tTotal Earnings: ₹1.1tTotal Revenue: ₹7.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian IT Industry Price to Earnings3Y Average 27.3x202420252026
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 19.2x which is lower than its 3-year average PE of 27.3x.
  • The 3-year average PS ratio of 4.1x is higher than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 6.3% per year over the last three years.
  • Revenues for these companies have grown 8.4% 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 Market-0.17%
Tech0.89%
IT0.045%
IT Consulting0.05%
Data Processing Services-1.80%
Internet Services and Infrastructure-2.16%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 93.6x.
    • 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 27.2x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 17% 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 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
TECHM Tech Mahindra₹1.38k3.9%
+₹46.1b		-1.7%PE26.5x
INFY Infosys₹1.26k0.6%
+₹30.8b		-21.1%PE16.9x
LTM LTM₹4.30k2.2%
+₹27.4b		-4.9%PE26.8x
HCLTECH HCL Technologies₹1.33k0.6%
+₹22.5b		-14.9%PE20.4x
HEXT Hexaware Technologies₹439.456.8%
+₹17.2b		-39.7%PE19.6x

Latest News

TECHM
₹1,384.80
Tech Mahindra
7D
3.9%
1Y
-1.7%

TECHM: AI And Telecom Partnerships Will Support Medium Term Upside Potential

Analysts have increased Tech Mahindra's fair value estimate from ₹1,577.74 to ₹1,686.33, citing updated assumptions around revenue growth, profit margins, a slightly adjusted discount rate, and a modestly lower future P/E multiple. Analyst Commentary Recent changes to Tech Mahindra's fair value estimate reflect a mix of optimism and caution around how the company can execute on its revenue, profitability, and valuation assumptions over time.
INFY
₹1,255.90
Infosys
7D
0.6%
1Y
-21.1%
PERSISTENT
₹4,716.70
Persistent Systems
7D
1.7%
1Y
-10.6%
MASTEK
₹1,449.50
Mastek
7D
-3.2%
1Y
-37.8%
HEXT
₹439.45
Hexaware Technologies
7D
6.8%
1Y
-39.7%
526299
₹2,092.05
Mphasis
7D
-1.0%
1Y
-13.9%

AI Modernization Pipeline Will Shape Banking Exposure And Margin Stability

Catalysts About Mphasis Mphasis is an IT services company that provides application, infrastructure and AI led solutions to global clients, with a large presence in banking, financial services and insurance. What are the underlying business or industry changes driving this perspective?
507685
₹191.05
Wipro
7D
-3.3%
1Y
-27.7%

AI Adoption And Vendor Consolidation Will Drive Stronger Long Term Earnings Quality

Catalysts About Wipro Wipro is a global IT services and consulting company that provides technology, engineering and business process solutions to clients across multiple industries and regions. What are the underlying business or industry changes driving this perspective?
TCS
₹2,390.60
Tata Consultancy Services
7D
-0.8%
1Y
-33.2%

TCS: AI Partnerships And New Outsourcing Wins Will Support Future Upside

Analysts now see slightly less upside for Tata Consultancy Services, trimming their price target from ₹3,583.72 to ₹3,497.86. They are factoring in a marginally higher discount rate and a modestly lower future P/E, while keeping revenue growth and profit margin expectations broadly steady.
532175
₹825.05
Cyient
7D
-5.1%
1Y
-37.3%

532175: Future Returns Will Likely Reflect Governance Changes And Expansion Plans

Analysts have trimmed their price target on Cyient from ₹1,000 to ₹930, citing updated assumptions that include a slightly higher discount rate, a modestly different revenue growth outlook, a small change in projected profit margins, and a revised future P/E expectation. What's in the News Board meeting scheduled on Mar 3, 2026 to consider appointing Shrinivas Kulkarni as Chief Financial Officer from Apr 1, 2026, with current CFO Prabhakar Atla proposed to move to Chief Operating Officer on the same date (Board Meeting).
LTM
₹4,298.80
LTM
7D
2.2%
1Y
-4.9%

LTM: AI Tax Analytics Mandate Will Drive Future Upside Potential

Analysts have trimmed their price target on LTIMindtree from ₹6,376.75 to ₹6,219.67. This reflects small shifts in assumptions around the discount rate, long term revenue growth, profit margin and future P/E multiples.
HCLTECH
₹1,333.70
HCL Technologies
7D
0.6%
1Y
-14.9%

HCLTECH: AI Partnerships And New Client Wins Will Support Upside Potential

Analysts have trimmed their price target for HCL Technologies by about ₹27 to roughly ₹1,740. This reflects small tweaks to fair value estimates, discount rate assumptions and expected future P/E levels, while keeping revenue growth and profit margin expectations broadly in line with earlier views.
E2E
₹2,262.20
E2E Networks
7D
-1.8%
1Y
3.3%
539895
₹27.80
Spice Lounge Food Works
7D
-4.6%
1Y
151.6%
500463
₹504.40
Black Box
7D
1.6%
1Y
39.8%
SAKSOFT
₹119.57
Saksoft
7D
-6.3%
1Y
-26.6%