Research notes

The report says consolidated revenue could rise ~167% YoY on the acquired Imperial Blue portfolio, but adjusted EBITDA margin may contract ~90bps to 14.2% and adjusted PAT decline 9% YoY to INR482mn due to interest costs of about INR650mn.

The note says Radico is expected to lead the coverage with ~13% revenue growth, 44% EBITDA growth and ~59% adjusted PAT growth in Q2FY27E, aided by ~30% P&A growth and a 45% rise in Magic Moments vodka, with EBITDA margin held above 20%.

The report estimates +2.3% QoQ CC growth for Happiest Minds and cuts its target price from INR 400 to INR 360.

The note expects Mastek to grow +1.7% QoQ CC and cuts its target price from INR 2,080 to INR 1,920 on a lower 12x multiple.

The report calls Sonata a key laggard at +0.6% QoQ CC on slow ramp-up and cuts its target price from INR 360 to INR 340 while retaining BUY.

The note downgrades Birlasoft from BUY to ADD and cuts the target price to INR 365, flagging it as a key laggard at +1.0% QoQ CC on a slow turnaround.

The report names Zensar among its preferred smaller names and expects +2.4% QoQ CC growth, while cutting the target price from INR 600 to INR 565.

The note upgrades Cyient to BUY with target price raised from INR 1,350 to INR 1,450, expecting DET growth of +5.5% QoQ CC including one month of Tao Digital consolidation.

The report estimates +1.7% QoQ CC growth for Tata Elxsi and cuts its target price from INR 4,100 to INR 3,900 on a lower 25x multiple.

The note expects LTTS to grow +2.1% QoQ CC and aim for mid-single-digit FY27E growth, with target price raised to INR 3,570.

The report expects Mphasis to grow +3.5% QoQ CC on continued BFSI ramp-up and names it a mid-tier preference, raising the target price to INR 2,840.

The note says Persistent will lead mid-tier growth at +6.3% QoQ CC including the Concise Systems acquisition, and is a stated mid-tier preference, with target price raised to INR 6,070.

The report lists LTIMindtree as a mid-tier preference and expects +5.3% QoQ CC growth aided by about one month of Randstad IT consolidation (organic ~+0.6%), with target price raised from INR 5,000 to INR 5,270.

The note says Tech Mahindra will post one of the best tier-1 prints at +0.9% QoQ CC, tier-1-leading +5.3% YoY CC growth and ~190bps YoY margin expansion, with target price raised to INR 1,660.

The report expects Wipro's revenue to decline -0.4% QoQ CC and guidance of -1% to 0% QoQ CC for Q3FY27E factoring furloughs, with target price cut from INR 195 to INR 185.

The note expects HCL Tech to lead tier-1 at +2.0% QoQ CC with ~50bps margin expansion, while trimming the upper end of its services guidance to 1.5-3%, and raises the target price to INR 1,370.

The report says Infosys is its preferred tier-1 pick but expects +1.3% QoQ CC growth, a 50bps FY27E guidance cut to 2-3% CC, TCV of about USD 2-3bn, and a target price trimmed from INR 1,300 to INR 1,250.

The note says TCS will trail expectations in a seasonally strong quarter at +0.5% QoQ CC, with TCV of USD 8-10bn and a maintained 26-28% margin band, and its target price is cut from INR 2,580 to INR 2,470 on a lower 15x multiple.

The note says it estimates a ~7% EBITDA impact for Aster DM and maintains BUY.

The note says it estimates a ~6% EBITDA impact for Max Healthcare and maintains BUY.

The note says it estimates a ~5% EBITDA impact for Apollo Hospital under the assumed margin-cap scenario and maintains a BUY rating.