IT services companies under the brokerage’s coverage reported a weak Q1 FY26, amid muted demand, delayed deal ramp-ups, and softness in manufacturing and retail verticals. Discretionary spending continued to be weak, as clients remained cautious amid macro and geopolitical uncertainties.

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Systematix Report

Within tier-1 IT, Tata Consultancy Services Ltd. remains our preferred pick, trading at a discount to its longterm average with strong order book visibility and discretionary spend recovery supporting growth; we maintain Buy with a target price of Rs 3,864.

Infosys, HCLTech, and Wipro trade at modest to steep premiums to their historical multiples, leaving limited upside, and we maintain Hold on all three.

Tech Mahindra trades at a significant premium despite weaker fundamentals, prompting us to reiterate Sell with a target price of Rs 1,112.

For Sonata Software, valuations remain fair with limited near-term catalysts, and we maintain Hold with a target price of Rs 423.

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. Read more on Research Reports by NDTV Profit.Infosys, HCLTech, and Wipro trade at modest to steep premiums to their historical multiples, leaving limited upside, and Systematix maintains Hold on all three.  Read MoreResearch Reports, Markets, Business ​NDTV Profit