Mid-tier IT firms widen growth lead over large peers

Mid-tier IT firms are expected to extend their growth lead over large IT services companies in the second quarter of FY27, as faster conversion of large deals and acquisitions help companies such as Persistent Systems and Coforge offset pricing pressure and AI-led deflation affecting the sector.

Brokerages expect large IT firms to report sequential revenue growth ranging from a decline of 1% to growth of 3% in Q2FY27, while mid-tier companies are likely to deliver significantly stronger growth. Persistent Systems and Coforge are expected to lead the pack, supported by continued ramp-up of large contracts, while Coforge is also likely to benefit from the acquisition of Encora.