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Indian (NIFTY) IT Industry Analysis

UpdatedAug 24, 2026
DataAggregated Company Financials
Companies164
  • 7D-2.9%
  • 3M2.7%
  • 1Y-18.6%
  • YTD-23.8%

Over the last 7 days, the IT industry has dropped 2.9%, driven by pullbacks in Tata Consultancy Services and Infosys of 2.5% and 4.1%, respectively. Overall the industry is down 19% in 12 months. 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
Mon, 24 Aug 2026₹25.1t₹9.5t₹1.4t20.6x18.5x2.6x
Wed, 22 Jul 2026₹23.9t₹9.5t₹1.4t22.4x17.6x2.5x
Fri, 19 Jun 2026₹23.9t₹9.3t₹1.3t23.2x17.9x2.6x
Sun, 17 May 2026₹23.6t₹9.3t₹1.3t21.7x17.6x2.5x
Tue, 14 Apr 2026₹26.1t₹9.1t₹1.3t22.1x19.9x2.9x
Thu, 12 Mar 2026₹25.4t₹9.0t₹1.3t21x19.8x2.8x
Sat, 07 Feb 2026₹30.3t₹8.9t₹1.3t23.1x23.7x3.4x
Mon, 05 Jan 2026₹33.0t₹8.7t₹1.3t25.3x25.2x3.8x
Wed, 03 Dec 2025₹32.3t₹8.7t₹1.3t25.2x24.7x3.7x
Fri, 31 Oct 2025₹31.1t₹8.7t₹1.3t27.7x23.9x3.6x
Sun, 28 Sep 2025₹29.4t₹8.6t₹1.3t26.1x22.8x3.4x
Tue, 26 Aug 2025₹31.5t₹8.5t₹1.3t26.7x24.6x3.7x
Thu, 24 Jul 2025₹32.1t₹8.4t₹1.3t29.9x25.3x3.8x
Sat, 21 Jun 2025₹34.0t₹8.4t₹1.3t29.6x27x4.1x
Mon, 19 May 2025₹33.6t₹8.3t₹1.3t29x26.8x4x
Wed, 16 Apr 2025₹29.9t₹8.3t₹1.3t27x23.9x3.6x
Fri, 14 Mar 2025₹32.4t₹8.3t₹1.3t25.5x25.7x3.9x
Sun, 09 Feb 2025₹37.6t₹8.2t₹1.3t32.4x30.1x4.6x
Tue, 07 Jan 2025₹38.6t₹8.0t₹1.2t34.6x32x4.8x
Thu, 05 Dec 2024₹39.4t₹8.0t₹1.2t36.3x32.8x4.9x
Sat, 02 Nov 2024₹36.4t₹8.0t₹1.2t37.7x30.4x4.6x
Mon, 30 Sep 2024₹38.4t₹7.8t₹1.2t39.5x32.9x4.9x
Wed, 28 Aug 2024₹38.5t₹7.8t₹1.2t40.9x32.9x4.9x
Fri, 26 Jul 2024₹36.9t₹7.8t₹1.2t38.8x31.6x4.7x
Sun, 23 Jun 2024₹32.7t₹7.7t₹1.1t34.3x28.6x4.2x
Tue, 21 May 2024₹31.6t₹7.7t₹1.1t36.4x27.8x4.1x
Thu, 18 Apr 2024₹31.8t₹7.8t₹1.1t38.4x28.3x4.1x
Sat, 16 Mar 2024₹35.1t₹7.7t₹1.1t34x31.6x4.6x
Mon, 12 Feb 2024₹35.1t₹7.7t₹1.1t40.8x31.6x4.6x
Wed, 10 Jan 2024₹32.7t₹7.8t₹1.1t42.4x28.6x4.2x
Fri, 08 Dec 2023₹31.4t₹7.8t₹1.1t39.6x27.5x4x
Sun, 05 Nov 2023₹28.9t₹7.7t₹1.1t39.2x25.5x3.7x
Tue, 03 Oct 2023₹29.7t₹7.6t₹1.1t37.4x26.4x3.9x
Thu, 31 Aug 2023₹28.9t₹7.6t₹1.1t36.3x25.8x3.8x
Price to Earnings Ratio

25.8x


Total Market Cap: ₹28.9tTotal Earnings: ₹1.1tTotal Revenue: ₹7.6tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian IT Industry Price to Earnings3Y Average 26.4x202420252026
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 18.5x which is lower than its 3-year average PE of 26.4x.
  • The 3-year average PS ratio of 3.9x 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 8.0% 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-0.20%
Tech-1.97%
IT-2.91%
Data Processing Services-0.57%
IT Consulting-2.89%
Internet Services and Infrastructure-6.67%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 437x.
    • 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 26.3x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 16% 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
COFORGE Coforge₹1.87k3.7%
+₹29.7b		6.2%PE47.2x
PERSISTENT Persistent Systems₹5.69k2.2%
+₹18.5b		4.5%PE44.2x
532175 Cyient₹908.604.7%
+₹4.5b		-27.0%PE26.5x
538891 Magellanic Cloud₹29.5810.1%
+₹1.6b		-64.7%PE15.8x
HAPPSTMNDS Happiest Minds Technologies₹436.252.2%
+₹1.4b		-26.8%PE29.4x

Latest News

TCS
₹2,284.10
Tata Consultancy Services
7D
-1.3%
1Y
-27.3%
Narrative Update • Aug 18

TCS: JFK Digital Terminal Partnership Will Drive Future ReRating Potential

Analysts now set a revised fair value price target for Tata Consultancy Services at ₹3,125, compared with the prior ₹3,228, reflecting updated views on discount rate assumptions, revenue, profit margin expectations, and future P/E multiples. What's in the News F1R3FLY Limited joined the Tata Consultancy Services Alliances and Partnerships ecosystem, with both companies working together to deploy F1R3FLY's concurrent computing on the TCS SovereignSecure Cloud to address enterprise cloud data security and compute infrastructure needs.
COFORGE
₹1,873.00
Coforge
7D
3.7%
1Y
6.2%
Narrative Update • Aug 18

COFORGE: AI Expansion And China Entry Will Support Balanced Medium-Term Upside

Analysts have raised their price target for Coforge from ₹1,719.86 to ₹1,904.40, based on updated assumptions regarding fair value, discount rate, revenue growth, profit margin and future P/E. What's in the News for Coforge Coforge launched a new business unit focused on the private equity sector that uses the Coforge Nuuron AI operating system to support portfolio-wide technology and operational programs.
516038
₹107.60
KS Smart Technologies
7D
11.6%
1Y
n/a
538891
₹29.58
Magellanic Cloud
7D
10.1%
1Y
-64.7%
TATATECH
₹797.50
Tata Technologies
7D
-5.2%
1Y
16.4%
Narrative Update • Aug 14

TATATECH: Aerospace And SAP Ambitions Will Face Overheating Expectations

The analyst price target for Tata Technologies has been revised to ₹724 from ₹651, with analysts pointing to updated assumptions around fair value, discount rate, revenue growth, profit margin, and future P/E as the basis for this change. What’s in the News for Tata Technologies Tata Technologies is set to participate in the Farnborough International Airshow 2026, where it plans to showcase end to end aerospace engineering capabilities under the Shaping the Future of Flight theme across aircraft engineering, systems engineering, digital manufacturing and connected maintenance.
INFY
₹1,130.00
Infosys
7D
-0.9%
1Y
-26.2%
Narrative Update • Aug 13

INFY: AI Pricing And Productivity Shift Will Shape Medium Term Upside Potential

Analysts have reduced their fair value estimate for Infosys to ₹1,478 from ₹1,705 as price targets across the Street move lower on weaker Q1 results, reduced revenue guidance, and ongoing concerns about AI driven pricing and productivity pressures. Analyst Commentary on Infosys Recent research on Infosys points to a more cautious tone after the Q1 miss and guidance cut, with several firms trimming price targets and downgrading ratings.
LTM
₹4,525.70
LTM
7D
-3.7%
1Y
-14.5%
Narrative Update • Aug 13

LTM: Sector Tailwinds And Earnings Momentum Will Support Future Upside

Analysts have trimmed their fair value estimate for Latam Airlines to ₹5,688.67 from ₹7,353.07, reflecting lower assumed revenue growth and profit margins as well as a reduced future P/E, even as recent research highlights improving sector conditions after geopolitical de escalation, along with expectations for steady air travel penetration and more rational competition. Analyst Commentary on Latam Airlines Recent Street research on Latam Airlines highlights a broadly constructive tone, with bullish analysts emphasizing both the sector backdrop and company specific attributes.
TECHM
₹1,584.00
Tech Mahindra
7D
-1.6%
1Y
3.7%
Narrative Update • Aug 12

TECHM: AI Partnerships And Margin Discipline Will Drive Future Upside Potential

Analysts have modestly lifted their fair value estimate for Tech Mahindra to ₹1,951 from ₹1,897, reflecting updated assumptions on revenue growth, profit margins, and a slightly different forward P/E framework. Analyst Commentary Recent Street research around Tech Mahindra sits against a backdrop of busy corporate activity in the wider technology and life sciences space.
HCLTECH
₹1,322.00
HCL Technologies
7D
-0.2%
1Y
-12.1%
Narrative Update • Aug 12

HCLTECH: AI Data Centres And New Deals Will Support Steady Outlook

Analysts have reduced their fair value estimate for HCL Technologies from about ₹1,551 to around ₹1,517. This reflects updated assumptions for discount rates, revenue growth, profit margins and future P/E multiples.
PERSISTENT
₹5,694.00
Persistent Systems
7D
2.2%
1Y
4.5%
Narrative Update • Aug 07

PERSISTENT: AI Expansion And Nagarro Bid Will Shape Balanced Long-Term Outlook

Analysts have lifted their price target on Persistent Systems from ₹5,090.71 to ₹5,504.74 as they factor in updated assumptions for revenue growth, profit margins and the stock's future P/E profile. What's in the News for Persistent Systems On August 03, 2026, Persistent Systems held its 36th AGM and approved a final dividend of ₹18 per equity share of face value ₹5, taking the total dividend for the year to ₹40 per share.
526433
₹4,580.70
ASM Technologies
7D
1.8%
1Y
18.4%
HAPPSTMNDS
₹436.25
Happiest Minds Technologies
7D
2.2%
1Y
-26.8%
Analysis Article • Jul 30

Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Happiest Minds Technologies Limited ( NSE:HAPPSTMNDS ) had a good week, as its shares rose 5.0% to close...
532175
₹908.60
Cyient
7D
4.7%
1Y
-27.0%
526299
₹2,410.00
Mphasis
7D
-4.0%
1Y
-17.3%
Narrative Update • Jul 22

526299: Future Returns Will Likely Be Pressured By Lower Profitability Assumptions

Analysts have trimmed their price target on Mphasis from ₹2,164.64 to ₹2,044.86, reflecting updated assumptions for discount rate, revenue growth, profit margins, and future P/E levels. What’s in the News for Mphasis Mphasis scheduled a board meeting for July 23, 2026, to consider and approve audited standalone and consolidated financial results for the quarter ended June 30, 2026, along with the auditor's report.
E2E
₹612.90
E2E Networks
7D
-10.7%
1Y
159.4%
SAHANA
₹892.85
Sahana System
7D
13.6%
1Y
-11.0%