Tier-2 IT Firms to Outperform in Q2 FY27: Nuvama

Tier-2 IT companies are expected to outperform larger peers in Q2 FY27, according to Nuvama, despite geopolitical tensions, weak macroeconomic conditions, and Gen-AI disruption concerns. The brokerage expects Persistent Systems to lead with 6.5% QoQ constant-currency growth, followed by Mphasis and Hexaware. Nuvama remains positive on IT services long-term, seeing Gen-AI as an opportunity.