Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

Indian (NIFTY) IT Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies161
  • 7D1.8%
  • 3M6.0%
  • 1Y-14.0%
  • YTD-0.1%

The IT industry is up 1.8% in the last week, with Tech Mahindra up 4.8%. However, the industry is down 14% over the past 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
Fri, 30 Jan 2026₹32.8t₹8.9t₹1.3t24.4x25.5x3.7x
Sun, 28 Dec 2025₹33.2t₹8.7t₹1.3t25.4x25.4x3.8x
Tue, 25 Nov 2025₹32.0t₹8.7t₹1.3t25.4x24.5x3.7x
Thu, 23 Oct 2025₹30.6t₹8.6t₹1.3t28.2x23.7x3.6x
Sat, 20 Sep 2025₹31.8t₹8.5t₹1.3t27.2x24.7x3.7x
Mon, 18 Aug 2025₹30.3t₹8.5t₹1.3t27.1x23.6x3.6x
Wed, 16 Jul 2025₹32.4t₹8.4t₹1.3t31.1x25.8x3.9x
Fri, 13 Jun 2025₹33.7t₹8.3t₹1.3t30.1x27x4x
Sun, 11 May 2025₹31.9t₹8.3t₹1.3t25.7x25.4x3.8x
Tue, 08 Apr 2025₹29.5t₹8.2t₹1.3t24.3x23.6x3.6x
Thu, 06 Mar 2025₹33.7t₹8.3t₹1.3t26.6x26.8x4.1x
Sat, 01 Feb 2025₹37.7t₹8.1t₹1.2t33.1x30.3x4.6x
Mon, 30 Dec 2024₹38.7t₹8.0t₹1.2t35.3x32.2x4.8x
Wed, 27 Nov 2024₹39.4t₹8.0t₹1.2t37.4x32.9x4.9x
Fri, 25 Oct 2024₹37.5t₹8.0t₹1.2t38.8x31.3x4.7x
Sun, 22 Sep 2024₹38.3t₹7.8t₹1.2t40x32.8x4.9x
Tue, 20 Aug 2024₹38.0t₹7.8t₹1.2t39.3x32.6x4.9x
Thu, 18 Jul 2024₹36.1t₹7.8t₹1.2t39.2x31.1x4.6x
Sat, 15 Jun 2024₹32.4t₹7.7t₹1.1t33.5x28.3x4.2x
Mon, 13 May 2024₹31.3t₹7.8t₹1.1t35.3x27.6x4x
Wed, 10 Apr 2024₹33.0t₹7.7t₹1.1t39.2x29.7x4.3x
Fri, 08 Mar 2024₹34.5t₹7.7t₹1.1t36.7x31.1x4.5x
Sun, 04 Feb 2024₹35.0t₹7.8t₹1.1t43.5x31x4.5x
Tue, 02 Jan 2024₹33.6t₹7.8t₹1.1t42.2x29.5x4.3x
Thu, 30 Nov 2023₹30.5t₹7.7t₹1.1t38.1x26.9x3.9x
Sat, 28 Oct 2023₹28.3t₹7.7t₹1.1t40.1x25.1x3.7x
Mon, 25 Sep 2023₹30.5t₹7.6t₹1.1t36.5x27.2x4x
Wed, 23 Aug 2023₹28.8t₹7.6t₹1.1t37.7x25.6x3.8x
Fri, 21 Jul 2023₹29.1t₹7.5t₹1.1t34.8x26x3.9x
Sun, 18 Jun 2023₹27.0t₹7.4t₹1.1t33.7x24.6x3.7x
Tue, 16 May 2023₹26.9t₹7.4t₹1.1t27.1x24.3x3.6x
Thu, 13 Apr 2023₹27.4t₹7.1t₹1.1t25.8x25.4x3.9x
Sat, 11 Mar 2023₹28.8t₹7.4t₹1.1t24.6x26.9x3.9x
Mon, 06 Feb 2023₹29.9t₹7.4t₹1.1t26.7x28x4.1x
Price to Earnings Ratio

28x


Total Market Cap: ₹29.9tTotal Earnings: ₹1.1tTotal Revenue: ₹7.4tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian IT Industry Price to Earnings3Y Average 27.5x202420252026
Current Industry PE
  • Investors are relatively neutral on the Indian IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 27.5x.
  • The 3-year average PS ratio of 4.1x is higher than the industry's current PS ratio of 3.7x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 6.4% per year over the last three years.
  • Revenues for these companies have grown 6.5% 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 Market1.14%
Tech1.95%
IT1.77%
IT Consulting1.77%
Data Processing Services1.42%
Internet Services and Infrastructure-0.11%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 68.8x.
    • 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 close to its 3-year average of 27.5x.
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 roughly in line with its past earnings growth rate.
  • 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₹1.77k4.8%
+₹71.7b		5.9%PE33.9x
HCLTECH HCL Technologies₹1.72k1.1%
+₹50.1b		0.5%PE26.9x
LTIM LTIMindtree₹6.00k0.8%
+₹14.2b		2.6%PE37.4x
526433 ASM Technologies₹3.00k9.2%
+₹3.7b		153.2%PE80.3x
534535 String Metaverse₹164.9521.5%
+₹3.4b		226.1%PE40.2x

Latest News

HEXT
₹695.15
Hexaware Technologies
7D
-4.2%
1Y
n/a
SAHANA
₹889.00
Sahana System
7D
13.2%
1Y
-46.6%
RSYSTEMS
₹380.05
R Systems International
7D
2.2%
1Y
-10.0%
HCLTECH
₹1,721.60
HCL Technologies
7D
1.1%
1Y
0.5%

HCLTECH: AI Partnerships And New Engagements Will Support Balanced Future Outlook

Analysts have slightly increased their fair value estimate for HCL Technologies to ₹1,761.82 from ₹1,760.36, reflecting adjusted assumptions around the discount rate, revenue growth, profit margins and future P/E expectations. What's in the News HCL Technologies has been selected by Team Global Express, a major logistics company in Australia and New Zealand, to consolidate its multi vendor IT setup into a single partnership and provide end to end managed IT services using its AI Force platform across applications, hybrid cloud, networks, cybersecurity and digital workplace (Client Announcements).
INFY
₹1,659.50
Infosys
7D
-0.2%
1Y
-10.8%

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.
534535
₹164.95
String Metaverse
7D
21.5%
1Y
226.1%
526433
₹2,996.65
ASM Technologies
7D
9.2%
1Y
153.2%
COFORGE
₹1,678.10
Coforge
7D
-0.6%
1Y
0.8%

COFORGE: Future Capital Raise And AI Platforms Will Drive Bullish Repricing

Narrative Update: Coforge Analyst Price Target Revision Analysts have lifted their fair value estimate for Coforge from ₹2,200 to ₹2,500, citing revised assumptions that include updated revenue growth, profit margin, discount rate, and future P/E expectations. What's in the News Coforge has called a special shareholders meeting via postal ballot on Jan 25, 2026 to seek approval to increase authorised share capital, issue equity shares on a preferential basis via a share swap, grant special rights linked to an SSPA, raise investment limits under Section 186, and raise capital through a Qualified Institutional Placement or other permitted routes.
504067
₹668.45
Zensar Technologies
7D
-7.4%
1Y
-22.3%
TCS
₹3,144.40
Tata Consultancy Services
7D
-0.2%
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).
526299
₹2,771.40
Mphasis
7D
-1.5%
1Y
-3.5%

526299: AI And Quantum Solutions Will Strengthen Future Earnings Quality

Analysts have lifted their fair value estimate for Mphasis from ₹3,156.57 to ₹3,198.49, citing updated assumptions for the discount rate, revenue growth, profit margin and future P/E as key drivers behind the change. What's in the News Mphasis has scheduled a board meeting on Jan 22, 2026 at 10:15 Indian Standard Time to consider and approve audited standalone and consolidated financial results for the quarter ended Dec 31, 2025, along with the auditor's report and other matters (Key Developments).
PERSISTENT
₹6,070.00
Persistent Systems
7D
-4.0%
1Y
0.2%

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).
538734
₹959.35
Ceinsys Tech
7D
10.7%
1Y
-38.5%
TECHM
₹1,768.40
Tech Mahindra
7D
4.8%
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
₹5,995.00
LTIMindtree
7D
0.8%
1Y
2.6%

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
₹239.85
Wipro
7D
-0.4%
1Y
-22.5%